USA HISTORY

Detailed explanation-1: -How did installment plans affect the American economy in the 1920’s? The fueled the growth of the consumer economy by allowing people to purchase more goods.

Detailed explanation-2: -During the 1920s many Americans bought high-cost items, such as refrigerators and cars, on the installment plan, under which they would make a small down payment and pay the rest in monthly installments. Some buyers reached a point where paying off their debts forced them to reduce other purchases.

Detailed explanation-3: -The 1920s is the decade when America’s economy grew 42%. 1 Mass production spread new consumer goods into every household. The modern auto and airline industries were born. The U.S. victory in World War I gave the country its first experience of being a global power.

Detailed explanation-4: -The main reasons for America’s economic boom in the 1920s were technological progress which led to the mass production of goods, the electrification of America, new mass marketing techniques, the availability of cheap credit and increased employment which, in turn, created a huge amount of consumers.

Detailed explanation-5: -The rapid expansion of the automobile industry created jobs throughout the country and played a large role in sustaining the economic prosperity of the 1920s. In 1929, at the peak of the decade’s economic boom, there were more than 330, 000 people employed at automobile dealerships in the country.