Electricity and Electrification

How did electricity boost the economy?

During the 1920s, the US electricity grid was widened to include many homes and businesses. This made factories more efficient and allowed people to buy and use more consumer goods, which ran on electricity.

What was the impact of electricity?

Electricity benefitted the economy in a number of ways.

• ❖ With their homes on the grid, people were able to use consumer goods that ran on electricity. This increased demand for them.
• ❖ Factories could use electricity to run more efficiently. This increased production.
• ❖ Electricity powered the radios that advertised products, leading to increased demand for goods.