Credit Of The 1920 ' S

During the 1920s the American people led themselves to their economic demise. In America, the Great Depression occurred during the 1930s after the crash of the stock market. “The Roaring Twenties”, which occurred before the Great Depression, was a time when the assembly line created more jobs and money to be used. This new economic prosperity, brought about the stock market, in which hundreds of Americans put in their money in hopes of their company making profits. The Great Depression was caused by stockholders using more money then they could pay back, workers using the non-shameful credit to buy products, which led Americans into debt, and the lack of demand, when there was an increase in supplies.

During the 1920’s, the economy was booming. But, as the decade began to come to a closing, there were signs of grey skies ahead. The Stock Market was showing signs of trouble and then in 1929 it finally crashed which caused the Great Depression. This caused many people to lose all of their bank savings because the bank had no more money.

During the 1920’s business was booming, many Americans were using credit cards to buy materials that they knew they could not pay back, businesses were producing products in an efficient manner, the cycle of debt was inevitable and electricity was being used in every American home. However, years later disaster strikes, on October 29 1929 Americas once healthy economy with a 4% unemployment rate suddenly spiraled out of control due to the stock market crash where billions of dollars were lost since many Americans wanted wealth and would go to any measure to achieve it which lead to careless investments and many investors raced to take their money out of the stock market as soon as it crashed. This unstable economy did

From the years 1929-1933, the United States was in an economic turmoil under the presidency of Herbert Hoover. During the 1920s, consumerism began to rise and people bought many things on credit with money they did not actually have. Once millions of shares were pulled from the stock market in 1929, there was a drastic decrease of money within the economy. Consumer spending dropped as well as investment rates. Businesses could not afford to have too many employees working when the company was barely making

            The twenties was a decade full of new financial opportunities in a society unable to adopt so much so quickly.  All of the new possibilities, such as credit and loans, led to greater debts and bigger holes to fill.  Society began getting too deeply in debt and was becoming increasingly unable to get itself out.  So, they began searching for alternate means of wealth.

The Roaring Twenties is known as a time of prosperity due to consumerism and mass-production from the years 1920 to 1929. This era in American history could be considered one of the most excessive times to date. Because of the United States’ triumph in World War I, the country had its first involvement of being a world power. The increase of consumer goods greatly impacted the U.S. economy during this time of success. Also, the start of the airline industry along with the expansion of automobile manufacturers helped profit banks. Several Americans became dependent on the newly developed methods of payment, which eventually became the American standard way of living. The quest to achieve this ideal lifestyle also known as the American Dream led to a severe shift in the nation’s economy. Through both fiscal and monetary policy along with laissez-faire tactics, the Roaring Twenties ended with the 1929 Wall Street Crash, which was the precursor to the worst economic decline in history, The Great Depression.

In the 1920s there was a trend of consumption by the American people, many citizens bought stocks and luxury items on credit rather than cash. This took a terrible turn in 1929 when the stock market crashed on October 29th. This was one of the major events that led to The Great Depression. The Great Depression was also caused by speculation and installment buying, income maldistribution, and overproduction. Each of these topics created serious problems for the economy that ended with debt, unemployment, and poverty.

Loeper 1 Alex Loeper Ms. Dargan 3rd Period 1/20/16 During the period of America in the 1920s, America had economic growth with total wealth more than doubling. The era of the 1920s brought on a period of many changes in economic and social aspects. The era the 1920s of the United States of America was more Roaring than a bust because of the birth of the new culture and economic growth. These affected and made America a better country during the 1920s and today.

The 1920’s decade was one that no one could ever forget. The elaborate new inventions and extravagant parties captured the country by storm. Everyone had the glimmer of riches or fame in their eyes. Poets and musicians were being discovered and idolized while the creation of credit allowed for the common middle class individual to live as luxuriously as they had always dreamed. Overall, it was a time of carelessness and prosperity for the new generation.

During the 1920s, America’s economy was terrible. The culture of the 1920s played a big role in causing the stock market crash of 1929. According to the The Roaring Twenties Bubble & Stock Market Crash article, it states “The 1920s marked a decade of increasing conveniences that were made available to the middle class. By and large Americans as a whole were weary of war and looking for a way to put the horrors of the last few years behind them. New products made chores around the home easier and resulted in increased leisure time”. This means the once expensive items were now affordable for middle class because of Americans buying things on credit. This method is described as buy now and pay later. But soon, more Americans used this paying

F. Scott Fitzgerald once stated,“The parties were bigger, the pace was faster, the shows were broader, the buildings were higher, the morals were looser, and the liquor was cheaper” (“30 Famous The Great Gatsby Quotes”). The time after the war known as the Roaring Twenties harbored change for not only the economy but for the people also. Credit materialized, becoming available for citizens to use on new products such as the vacuum cleaner and the washing machine which allotted more time for the people to have to themselves. The 1920s, a time of celebration and prosperity, eventually ended as a result of a sudden economic crash, because of the effects from the times.

The 1920s was known for its prosperous and flamboyant lifestyle. The GDP during that time had risen by 30 percent and unemployment was as at an all-time low of 3 percent. This was not meant to last forever. In fact, it was nearly impossible for this to last any longer than it did due to an imbalance that society was unaware of including that not every citizen was experiencing this uncommon wealth. There were still 3 percent unemployed and even some of the employed members of society did not make enough to support a family and were considered homeless. It was in October of 1929 when this so-called luxurious lifestyle vanished as the stock market crashed at a time when the stock market seemed it would never stop increasing. This caused an economic, downhill, rolling ball effect. Those who took out loans to invest in stocks could not afford to repay the banks causing the banks to fail and close down. When the banks closed down, the depositors of that bank lost their life savings causing them to go broke and some company owners to close their doors. This led to a loss of jobs by the employers of those companies. This time period was known as the Great Depression and rightfully so. It is the most significant setback in the American Economy to date. The Herbert Hoover administration was in effect at this time giving the society an easy target to blame. Come time for the next election in 1932, Americans were ready for a change in authority to bring them out of this seemingly black

Installment plans were easy to get and people got into debt without thinking or planning for their future. In the 1920s, if people wanted something then they were able to purchase it, easily. Buying something had a major economic impact, the merchandise that were bought had to be made by somebody. This was the era before robot technology emerges and most work was labour intensive—people did the work. The person who made the product would get paid and instead of saving it, he will spend it somewhere else; he, too, will spend some of it and someone somewhere else will have to make more products, so he will then get paid —therefore, the cycle continued. The rich will get richer due to the mass consumption of their products and the poor will get poorer due to them purchasing the products without having enough money for it.

America had been a generally conservative nation with a population that avoided personal debt. However, this would all change during the decade known as “The Roaring Twenties.” This prosperous period embodied huge changes in the general lifestyle and culture of the American people as they embraced consumerism. However, during the 1920s the economy also faced numerous unfortunate events and unstable practices that would lead to one of the world’s worst economic crashes. There were many reasons for the economic downfall, including mass production and consumerism, excess credit and ‘playing’ the stock market, which led to the stock market crash in 1929.

which caused uneven prosperity. Although the economy was booming in the 1920's most purchasing was done by credit.