USA HISTORY

Detailed explanation-1: -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-2: -Installment credit soared during the 1920s. Banks offered the country’s first home mortgages. Manufacturers of everything–from cars to irons–allowed consumers to pay “on time.” About 60 percent of all furniture and 75 percent of all radios were purchased on installment plans.

Detailed explanation-3: -But the most important consumer product of the 1920s was the automobile. Low prices (the Ford Model T cost just $260 in 1924) and generous credit made cars affordable luxuries at the beginning of the decade; by the end, they were practically necessities. By 1929 there was one car on the road for every five Americans.

Detailed explanation-4: -“Buy Now, Pay Later” became the credo of many middle class Americans of the Roaring Twenties” (ushistory.org) With easy credit being available to everyone anyone no matter who was able to get big loans for any type of thing like a house, automobile, or if a farmer a farm.