Augmenting Affluence of America – A Car Story

Coming from India and the way I grew up from my childhood, I always view car as a status symbol and a way to portray wealth. Crossing over to U.S. and looking at the nation which doesn’t have any other mode of transportation except car is a bit of a wonder moment to me. Even after my association of close to decade with U.S., I never owned a car in this country or back in India which is a bit of a puzzle. I might be the only one who after living for close to three years on a H1B work visa do not own a car. This doesn’t mean I am a lesser traveler or comes out less.  I am a regular and works every day - be it sunshine, rain, cold or snow. Even with all these different weather conditions and daily travel requirements, I still commute mostly on a bicycle or a rented vehicle or book a uber, but never owned a four-wheeler. I tried on a quite a number of occasions to own a car, but for good or bad it never happened. For now, travelling on an electric bike has been the practice I am resorting to. I might be the only one who travels in this way in negative winter temperatures of my city for three years. The point is, my pursuit and struggle for a car should improve the landscape of car ownership and eradicate any signs of poverty in the larger picture. The heightened catalytic reaction and a greater momentum generated in automotive industry in these times has spurred a movement to improve the landscape around car ownership and increased affluence in the country. It has also brought to the track, the legendary automobile companies of the nation towards reclaiming the lost glory. In short, America is on track towards reclaiming great years of the past and is moving towards a renaissance in manufacturing. Simply, the country is becoming great again and we can feel the same in the air. 

It is not just few persons struggle that will spur the movement but the nation has travelled along the progressive lines for more than a century. While my affinity and pursuit of a car is microcosmic addition towards a greater picture, the transportation medium in the country itself has contributed to the evolved picture all over the world over a long time. The concept of cars as symbols of wealth and status has roots in multiple countries, but the United States played a significant role in popularizing this idea. The same has been the case with me back in India, where everyone feels the same by looking at someone with a car. Throughout my childhood, whenever there is a traffic stop, I always looked from the other side of the tinted glass window of the next vehicle and wondered what lies beyond it. It demanded my respect and it always occurred to me as a symbol of wealth. In a way, we can say the definition which emerged in U.S. has been popularized throughout the world by becoming a norm which shaped societies and little perspectives within it. America rode the vehicle from the driver seat and most of the rest followed from the back seat. The present times has been aiding towards fortifying the very image which has been built since long time and making the nation more affluent. 

Cars are a symbol of wealth. There is no denying the fact. It is amazing to look at U.S. where almost everyone owns a car. It does mean in a way that everyone is wealthy and rich and everyone owns a costly mode of transportation. The United States evolved into a nation where nearly every household owns a car—a transformation that mirrors its economic, technological, and cultural ascent. This evolution began in the early 20th century with Henry Ford’s revolutionary assembly line. By mass-producing affordable vehicles like the Model T, Ford democratized car ownership, allowing millions of Americans to experience personal mobility and independence. 

Following World War II, America entered an era of prosperity. The booming economy, suburban expansion, and significant government investments in infrastructure, such as the Federal-Aid Highway Act of 1956, accelerated the car culture. Highways crisscrossed the nation, enabling families to move to suburbs where spacious homes and a higher quality of life awaited. Car ownership became essential for commuting, leisure, and accessing the newly developed retail and service industries that sprouted in suburban areas. 

Today, approximately 90% of U.S. households own at least one vehicle, with over 280 million registered cars circulating on the roads. This prevalence is not merely functional; it is a vibrant symbol of American affluence. In affluent communities, luxury vehicles from brands like Mercedes-Benz, BMW, and Tesla coexist with reliable sedans and pickup trucks, highlighting a society that values both practicality and status. Gleaming cars in driveways and on showroom floors underscore the nation’s prosperity and the cultural importance placed on personal freedom and achievement. 

The evolution of car ownership in the U.S. is a reflection of industrial innovation and an enduring cultural dream of mobility and success. As automobiles became accessible to virtually everyone, they transformed American society—reshaping cities, influencing lifestyles, and symbolizing the affluence that continues to define the American experience. 

The car industry has been a cornerstone of the U.S. economy. In the 1950s, General Motors, Ford, and Chrysler, collectively known as the “Big Three,” dominated the global auto market. The industry employed millions of Americans, directly and indirectly, from manufacturing to sales and maintenance. What more, the industry has evolved and reached a stage where it became extremely big in present times. The numbers don’t hide the reality. The automotive industry contributed $1.3 trillion to the U.S. economy in 2021, representing 7.5% of the GDP. Over 10 million people are employed directly and indirectly by the automotive industry. An industry this big has been running America and powering the nation for all its commuting needs. 

While there might be lingering doubts about the continuation of century old phenomenon, these have been castigated to mere doubts. These doubts have been put to rest and the present times have strengthened to continue the onward journey for a very long time. Detroit, Michigan, famously known as the "Motor City," is synonymous with the American automotive industry. Its transformation into the heart of automobile manufacturing has shaped not just the city's identity but also the nation's economic and cultural landscape. This part of the nation has been energized and revitalized in the present times which tremendously aids the industry at large. There is no doubt in continuing the momentum and the status quo for a long time. 

Detroit's journey to becoming the automotive hub began in the late 19th and early 20th centuries. The city's strategic location near the Great Lakes and its burgeoning industrial base made it an ideal location for manufacturing. Early automotive pioneers like Henry Ford, William C. Durant, and the Dodge Brothers capitalized on this, establishing their manufacturing plants in Detroit. Ford's introduction of the Model T in 1908 and the innovative assembly line technique in 1913 revolutionized car production, making Detroit the epicenter of the industry. The term "Big Three" refers to the three major American automotive companies headquartered there: Ford, General Motors (GM), and Chrysler. These companies played pivotal roles in cementing Detroit's status as the automotive capital and reverberated the same across the nation. 

The decline of the automotive industry in the late 20th century hit the core hard. Factors such as competition from foreign automakers, economic recessions, and mismanagement led to significant job losses and economic downturns. However, the nation's resilience is evident in its ongoing efforts to diversify its economy and revitalize its automotive sector by giving a lifeline to the much-needed entity by virtue of tremendous work. Today, GM and Ford continue to be in top three players by market share and this tells a great picture of the reality on the ground. 

Ford and General Motors (GM) have become cultural icons in the U.S. through a combination of innovation, mass production, and deep integration into American society. Their stories are intertwined with the evolution of the U.S. itself, reflecting the nation's values and aspirations. Whenever these icons rise, the nation itself rises from the bottom and all over again. Another uprising of today sharply points to the rise of a nation in yet another wave. 

The U.S. auto market has seen a shift from traditional "Big Three" (GM, Ford, Chrysler) to a more diverse mix of manufacturers, including strong performances from Asian automakers like Toyota, Hyundai, Honda etc. I drive in one of these vehicles on most of the occasions and like the experience. 

However, the environmental impact of car proliferation has led to increased focus on sustainability and green technologies. Transportation accounts for about 28% of greenhouse gas emissions in the U.S. The majority of GHG emissions from transportation are carbon dioxide (CO₂) emissions resulting from the combustion of petroleum-based products like gasoline and diesel fuel in internal combustion engines. From 1990 to 2022, total transportation emissions from fossil fuel combustion increased by 19%. This rise is attributed to the growing number of vehicles on the road and increased travel distances. This is an area which definitely needs a lot of work to be done as the nation with millions of gas cars on roads need to phase out to green players and technologies. EVs produce zero tailpipe emissions and are seen as a key solution to reducing transportation emissions. 

As the nation need to travel on the road to embrace the new reality and become a new model for transportation in the next decade, the industry is well poised to undergo the shift and build on the present-day momentum. We don’t become rich and then purchase car but become rich by purchasing a car. If it is anything, the affluence of the nation has been taken care by this entity in this way in some perspective. The affluence of America has been upheld by the movement underway and we can hardly deny the fact.