3 Ways the Telephone Changed the Economy of the United States

Invention Name	The Telephone
Invention Date	1876
Impact Level	High
Inventor	Alexander Graham Bell
Region of World	United States, 19th century

The telephone forever changed the economic development of the United States. Few inventions to this day have revolutionized the way that economies have developed worldwide.

The invention of the telephone changed the economic development of the United States in 3 major ways. First, the telephone allowed for near instant communication of business ideas. Second, the telephone allowed for rapid spread of national identity. Third, the telephone allowed for an efficient market to develop.

Without the telephone it’s doubtful the United States would have become the economic powerhouse it is today.

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Without further ado, here are the 3 ways the Telephone changed the economy of the United States.

The Telephone Allowed For Near Instant Transmission of Business Ideas

One of the major ways in which the invention of the telephone forever changed the economic development of the United States was through business communication speeds.

Before the invention of the telephone a majority of the United States communicated vital business ideas through letter, in person, and telegram. This naturally slowed down the development of the economy of the United States.

However with the invention of the telephone in 1876 this forever changed. Almost overnight business around the United States began to transmit economic ideas at near light speed.

What used to take several days to plan and implement now only took a day or two. An example of this can be seen in the railroad industry which began to use telephones to dispatch trains in 1876, the same year it was invented.

Almost instantly the railroad industry noticed how successful the invention of the telephone was in reshaping the economy of the United States. As such the logistical shipping sector of the United States economy began to explode.

This was only one sector of the economy of the United States that was forever changed by the invention of the telephone. Other sectors across the United States such as the steel industry, finance, and healthcare began to experience rapid economic development because of the telephone.

Changing the way that business is conducted is one of the major ways the telephone forever changed the economy of the United States.

The Telephone Allowed For Rapid Spread of the National Identity of the United States

One of the major ways in which the telephone forever changed the economy of the United States was by giving people the ability to transmit ideas and culture vast distances.

Previous to the telephone people in the United States traditionally used letters to convey their culture, economy, and society.

The speed of knowledge transfer across the United States was greatly limited by sending letters. This forever changed upon the invention and adaptation of the telephone. From 1876 onwards people began to communicate ideals on what the United States was.

This directly impacted the economic development of the United States. A consumer culture began to form where people would in the western U.S would attempt to emulate those living in the eastern U.S.

A consumer economy began to form because of the telephone. This forever changed the economic development of the United States. The telephone allowed for people to communicate their ideas and culture significantly faster than previously.

This spread of national identity caused the United States to see a period of economic explosion. This was a direct result of the invention of the telephone in 1876.

The Telephone Allowed For An Efficient Market To Develop

One of the major ways which the telephone forever changed the economy of the United States was by creating an efficient stock market.

Before the invention of the telephone people had to transmit what to buy through either word of mouth or letter. This caused significant delays in buying and selling of tradable assets such as stocks and commodities.

As a result the overall economic development of the United States was slow before the invention of the telephone. It would take days to weeks to purchase a tradable good.

However, with the invention of the telephone almost overnight stock exchanges started to install telephones so that investors could place orders almost instantly.

This created an information arms race where everyone had to have a telephone or else they would lose money. Almost overnight the economy of the United States changed.

Now traders and investors could sell or buy assets and as a result the market’s price began to reflect a more accurate price. Speculation and prediction began to dominate the markets. With this came a demand for more telephones.

As a result of the invention of the telephone the United States began to develop an efficient market for the first time. This forever changed the economic development of the United States.

Conclusion

There you have it; an entire article that goes over the 3 ways the telephone changed the economy of the United States.

As a result of the Scottish born immigrant Alexander Graham Bell the economy of the United States was forever changed. Today billions of people in the world have been impacted by Bell’s invention of the telephone.

Here at the History Ace I strive to publish the best history articles on the internet. If you liked this article then consider subscribing to the free newsletter and sharing around.

Further, you can check out some of the other articles below. 

Until next time,

Nick