Banking and Credit

Consumerism became more common during the 1920's due to mass production, new products on the market and improvements in advertising

Due to more leisure time and money to spend, meant that people were eager to own the latest products

Catalogues became popular, revolutionising how people bought items. These catalogues contained everything imaginable.

This lead to increases in:

Hire Purchise and The Stock Market

Anyone could buy any product through hire purchise/ buying on credit (pay for it later) where products could be bought through paying instalments

Popular with families as they could buy expensive and larger items e.g. cars and fridges

75% of cars bought on credit

50% of household appliances

Credit was extended by the US Federal Reserve Board, in 1921= $45.3bn by 1929 it has risen to $73bn

Money to invest, many people began to buy stock. This seemed modern, a venture for those who were smart, sophisticated and urban

Even though it had risks, it seemed like a sound investment. The economy continued to grow, with people seening buying stock as a way to get rich quick

1928- stock market was booming and buying on margin was common, this was a risky practice in which the buyer would borrow from a broker in order to buy stock