What was an economic effect of the invention of the radio?

Answer 1

In the USA, the effect was minimal at first, because commercials were not allowed when radio first went on the air in 1920; few stations existed, performers volunteered, and owners had to spend their own (or their company's) money to keep the station on the air. But gradually, that changed, and by 1924-1925, many stations were accepting commercial advertising, helping to pay for the programs. This was also good for the advertisers, since radio listeners could become consumers of their products. It was also good for the announcers and performers, who were now getting paid for their work. Another economic benefit was to the performers: before radio, an entertainer had to go from city to city to spread his or her name, but the success of radio (and its wide reach-- an AM radio station might be heard hundreds of miles away) brought that performer into the homes of thousands (later millions) of listeners, many of whom decided to buy that performer's records or attend their concerts. And of course it was quite a plus for those department stores that sold radios-- owning a radio became a necessity for most Americans.