USA HISTORY

Detailed explanation-1: -During the 1920’s, many Americans were living beyond their means, buying things on credit that they could not afford. Businesses were mass-producing goods to keep up with demand, but when consumers’ credit began running out, businesses had an over-production problem. This led to mass lay-offs of workers.

Detailed explanation-2: -Consumption in the 1920s The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans. Now individuals who could not afford to purchase a car at full price could pay for that car over time–with interest, of course!

Detailed explanation-3: -In the 1920s, assembly line production and easy credit made it possible for ordinary Americans to purchase many new consumer goods. Overview For many middle-class Americans, the 1920s was a decade of unprecedented prosperity. Rising earnings generated more disposable income for the purchase of consumer goods.

Detailed explanation-4: -What is the significance of debt and credit in the 20s? The widespread use of credit and layaway buying plans meant that it was acceptable to go into debt to maintain what came to be seen as the American “standard of living” and this was a huge change in attitude.