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In baking terms, solid fats "shorten" baked goods - they have a tender, crumbly texture and do not rise as much as yeast breads which have little or no fat added. So "short bread" is sweet bread that is just flour, sugar and fat, without any leavening. Pie dough is flour, fat, water and a bit of salt; pie crust with too much fat / shortening is "too short."

Before commercial "shortening" was developed, rendered fats and butter were the available shortenings; that is, fat that is solid at room temperature. In the early 20th Century, manufacturers learned to process vegetable oils so they remained solid at room temperature, and this product came to be known as "shortening."

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