Final answer:
The rise in automobile ownership during the 1920s bolstered various industries and infrastructure development, but the 1929 crash led to a severe downturn in the automotive industry.
Step-by-step explanation:
The decade of the 1920s saw a significant boost in automobile ownership, which had profound effects on the American economy and society up to the crash of 1929. The mass production of cars like the Model T Ford brought mobility to a wider American public, spurring growth in various industries such as steel, glass, rubber, and particularly oil. As more and more Americans acquired cars, there was a dramatic increase in the need for public roadways, leading to widespread infrastructure developments and the emergence of businesses tailored to the mobile consumer, such as motels and restaurants.
However, following the market crash in 1929, investment and consumer confidence plummeted. The automotive industry faced a significant downturn, with a notable reduction in the production of cars and the subsequent closure of several luxury automobile companies in the 1930s. The construction industry also declined sharply, with no major construction projects, such as new hotels or theaters, being initiated in New York City for the next thirty years post-crash.
This economic downturn caused widespread unemployment and a drastic decrease in both consumer spending and businesses' willingness to invest, leading to a collapse in the market for new automobiles. The fall in consumer confidence and the lack of investment had destructive effects on the automotive and construction industries, which were significant contributors to the nation's economic health.