134 ChaPter 3
showing off one’s wealth was at times even considered sinful [except for the
ruling class, who were “captains of industry” and deserved their wealth, as
they and their media cronies explained it]. In the 1920s, that old culture of
saving and not buying goods had to be changed, and consumption had to
increase. By the end of the decade, more people, prompted by advertising and
loans, were spending more money and buying more things than ever before
and, for a time, the economy reached levels never seen before. Americans
spent less money on “necessities” like food and clothing and more on appli-
ances, recreation, and new products. This economy based on consumption
came out of various new developments. Corporations established Research
and Development [R&D] departments to invest in laboratories, scientists, and
new methods of production so they could invent new products. Factories and
farms alike began to run on electricity, so production was cheaper and trans-
porting goods was easier and more affordable because being close to water,
the traditional source of power, no longer was vital. By the end of the 1920s,
over 70 percent of industry had converted to electricity. And perhaps most
importantly, scientists and engineers invented an efficient internal combustion
engine, in which fuel [like gasoline] would mix with air in a combustion cham-
ber to cause an ignition—and this, of course, would become help create the
biggest industry of the era, automobiles.
All of these developments quickly transformed the country. Americans
started shopping at chain stores like A&P Groceries, while banks and utility
companies often joined together so people could manage their money and
utilities at the same place [a condition that would help lead to the later bank-
ing crisis]. Even more importantly, consumers could now buy stoves, refrig-
erators, vacuum cleaners, washing machines, and telephones. A booming
entertainment and music industry developed as about 20 percent of American
homes [about 5 million] had radios, with over 20 million people listening in,
and more people were buying phonographs [record players] to listen to
recorded music. By 1927, American manufacturers produced about 1 million
phonographs and music companies sold over 100 million recordings. Basic
items used in everyday life like fountain pens, cigarette lighters, Dixie cups,
and paper towels came to the market in the 1920s. In the food industry,
technologies to can and freeze-dry foods helped production, and thus profits,
rise dramatically. Instead of going to the market for fresh fruits and vegetables
every few days to avoid having food at home spoil, the consumer, usually