How the invention of cars affected the economy?

Why was the invention of the automobile so important? How the invention of the car changed the world?


  1. 1 People no longer needed to live near rail lines

    Before cars people used to live near rail lines to stay connected to each other. When cars were invented people found themselves free to live in any area they wanted as long as there were roads there.

  2. 2 New jobs were developed

    As a result of the invention of cars, new kinds of businesses were developed such as Fast food, Gas stations, and Auto repair shops.

  3. 3 Suburbs were developed

    Because people were able to live away from railways suburbs were developed.

  4. 4 Some businesses expanded

    Some Small stores started branching out through the new suburbs thus expanding their business. McDonald's is an example of a business that expanded rapidly with the invention of cars.

  5. 5 Demand for rubber , glass and textile went high

    The rise of automobiles increased the demand for rubber, glass, and textile since they were parts of the manufacturing process.

  6. 6 Rise to the fuel and petroleum industry

    As cars needed fuel to run the demand for petroleum spiked and this led to the rise of the petroleum industry.

  7. 7 Rise of home ownership

    As people moved to new suburbs new real estate markets were developed and there was a rise in homeownership.

  8. 8 Shopping distribution was impacted

    Because people lived in diverse areas after the invention of cars shopping became more distrusted over a larger number of stores. (See How War Affects Economy?)

  9. 9 Walking, horses and railroads became less popular

    As cars grew people started walking less and becoming less dependent on railroads and horses.

  10. 10 Changes in employment distrubtion

    Since people no longer lived in central places the employment distribution was changed.

  11. 11 Standardization of manifacturing

    Because cars needed parts such as bolts, wheels, and windows manufacturers had to move towards a more standardized model to be able to supply the cars with their parts without worrying about them fitting or not.

  12. 12 Clothes had to be adapted to cars

    Clothes, especially women's, had to be changed to help people drive cars comfortably. 

  13. 13 Many Roads were built

    As automobiles became popular more and more roads were built. Also, old roads were rebuilt to be able to withstand the load of the car. This lead to more jobs as more builders were required.

  14. 14 Rise of price of remote lands

    As automobiles made further lands more accessible the demand for new land raised their prices up. (See Why is Mexico a developing country?)

  15. 15 People who couldn't afford a car had less oppurtunities

    People who couldn't afford a car or who couldn't drive for any reason missed many opportunities including the one to get a job in a remote area.


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