The term to "cut a rug" first started to emerge as a slang term for dancing in the 1920s. Use of the phrase persisted well into the 1940s, although the popularity of the term has since faded.

Some theorists believe that this term might have been used to describe dancers who moved so well and so regularly that they would have worn out a carpet. In some regions, a particularly skilled dancer is said to "cut a mean rug," a nod to the notable abilities of said dancer. In addition to being charming, this explanation is highly probable. Carpets are known to show extensive wear with small slits which could resemble cuts, and the link between heavy dancing and wearing out the floors seems obvious.

Other theorists have suggested that the term is related to rugs in the sense of taking them up or moving them. When a spontaneous dance party arises, rugs and furniture are usually moved out of the way to facilitate dancing. Rugs could also be removed in the long term to create a dance space, as would have been common in the 1920s, when Prohibition caused many social clubs to go underground into private homes. While the rugs might not have been literally cut, they could have been moved to safekeeping to avoid damage from dancing.

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