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Productivity increased and businesses expanded. Chain stores spread about and mergers occurred between businesses. As the number of businesses grew, so did the income gap between the workers and managers. Especially the iron and railroad industries were not very prosperous. Farmers and other farm workers suffered losses with new machinery that was producing more food than needed which decreased their profits.

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The installment plan enabled people to buy goods for an extended period of time, without having to put down much money at the time of the purchase. Advertisers pushed the "installment plan" idea with such slogans as "You furnish the girl, we'll furnish the home" and "Enjoy while you pay". Some economists and business owners worried that the installment buying might be getting out of hand, and that it was a sign of fundamental weaknesses behind a superficial economic prosperity. Still, most Americans focused on the present, and wondered what could possibly go wrong with the nation's economy? Life seemed easier and more enjoyable for hundreds of Americans.

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After automobiles, several airplane models were developed to be another form of transportation for people. The airplane first started out as a mail carrying service for the U.S. Post Office. The developing of weather forecasting caused plans to be equipped with carrying radios and navigational instruments. Henry Ford developed a trimotor airplane in 1926. Transatlantic flights by Amelia Earhart and Charles Lindebergh  helped promote cargo and commercial airlines. In 1927, the Lockheed Company produced a single-engine plane called The Vega. It was one of the most popular transport airplanes of the late 1920s. In 1927, Pan American Airways was founded and inaugurated the first transatlantic passenger flights. The more transportation that was created the less people would ride the train. This caused a decrease in profits for the railroad industry because more people were interested in purchasing a car or taking a ride in an airplane rather than traveling by train.

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-After World War 1 there was much trouble with-war debt, and destruction of land. Harding had the 5 major powers: United States, Great Britain Japan, France and Italy come together to agree to disarm; which was successful in the end.

- France and Great Britain had to pay back $10 million they borrowed from America. The powers could either pay the money back by selling goods to America or by collecting reparations from Germany.
- 1922: Fordney-McCumber Tariff: Raised taxes on some US imports to 60% (the highest level). This tax protected US businesses- especially metal and chemical industries- from foreign competition but made it more possible for  Britain and France to repay America.
- Dawes Plan: Britain and France had looked to Germany for the money to pay back America (at this time Germany was facing inflation). When Germany denied to make the payment, French troops marched in and sent Charles G. Dawes (an American banker) to negotiate loans.
-Result of the Dawes Plan: American investors loaned Germany $2.5 billion to pay back Britain and France with annual payments on a fixed scale; which in the end helped Britain and France to repay America.
- Teapot Dome Scandal: The government has set aside oil-rich public lands at Teapot Dome, Wyoming, and Elk Hills in California for use by the US Navy. Secretary of Interior Albert B. Fall, a close friend of various oil executives, managed to get the oil reserves transferred from the navy to the interior department. Then Fall secretly leased the land to two private oil companies at Teapot Dome. From these secret leasings Fall received over $400,000 in "loans, bonds and cash". He was later found guilty of bribery and became the first American to be convicted of a felony while holding a cabinet post.

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The automobile changed the way of American life. Roads were paved to make driving along them easier and more stable which lead to the creation of Route 66. Route 66 was for people trekking West from Chicago to California; many people settled along this route. Houses became equipped with garages or a carport, and driveways. More gasoline stations, repair shops, public garages, motels, tourist camps and shopping centers started to develop and spread around.  These developments all helped to keep people moving, the invention of the automobile helped people to be able to travel for shopping purposes or to visit family and friends a ways away. It gave more vacation opportunities and allowed women and young people to become more independent through increased mobility. This invention didn't benefit everyone though. The railroad industry became less popular. More people were buying cars to drive themselves around and less people were using the railroad as their type of transportation; which caused the railroad industry to make less profit then they were used to making.

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Reformers in town believed that too much drinking led to crime, wife and child abuse, accidents on the job, and other serious social problems. This caused the 18th Amendment to go into play which closed down saloons and made alcohol almost impossible to get a hold of. This caused the creation of Speakeasies which were underground hidden saloons and nightclubs where people could drink alcohol in secret. Speakeasies were commonly found everywhere around towns and to be admitted you had to present a card or speak a secret password. Another way people obtained liquor was from Bootleggers. A bootlegger was a person who carried liquor in the legs of their boots who had smuggled it into America from Canada, Cuba, and the West Indies. Prohibition had caused people to lose respect for the law and led to organized crime. Everything only got worse from then on, and the 18th Amendment stayed into play until 1933 until it was repealed by the 21 Amendment.

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Post-War women wanted to assert their independence , and demanded the same values as men. During the 20s a new ideal emerged for some women, the flapper. The flapper was an emancipated young women who embraced the new fashions and urban attitudes of that time. At the time women believed they had no power over men but then the flappers came along and showed younger women they should be considered equal next to men. Magazines, newspapers, and advertisements promoted the image of the flapper. Although many young women donned the new outfits and flouted tradition, the flapper was seen as more of an image of rebellious youth than a widespread reality. Even though women were given more freedoms, they were still seen the same by most men and other people of the town. A double standard was created which was a set of principles granting greater sexual freedom to men than to women. This required many women to be pulled back and forth between the old standards before the World War and the Post World War.