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Consumer Spending in 1920

During the 1920's, most Americans thought that success and prosperity would go on forever. The average worker was making 50% more money than past generations and most major corporations were making fortunes. Also the stock market was ascending to higher levels than had ever been seen. Most Americans started to focus on the present instead of the future as they decided to make their own personal lives easier and more enjoyable. This new attitude brought about many changes in the way people spent their money. No longer did they feel the need to save up for the future.

As businesses became bigger and started to merge with other big companies, productivity of goods soared. These companies found ways to decrease costs of producing their goods, which decreased prices and increased consumer spending. Fierce competition between companies was also abundant during this time, so they hired advertising firms to make ads that would attract peopl


Many household items were now readily available at the nearest department store or general store. These items included vacuum cleaners, washing machines, sewing machines, irons, refrigerators, toasters, cooking ranges, telephones, and almost anything else one needed. The radio was also introduced during this time and was an important tool for communication and entertainment. The most influential product of this time period by far was the automobile.

The influx of goods and ease of access to them engrossed Americans. Because they were focused on making their lives enjoyable, they wanted many products even though they might not have the money for them. Buying on credit was the solution. By using the installment plan, people could purchase goods without having to pay for them at the time they bought them. Instead they would pay little amounts over an extended period of time. Banks essentially bought the goods, and people would pay the banks

Some common words found in the essay are:
, increased consumer, installment plan, people buy,
Approximate Word count = 642
Approximate Pages = 3 (250 words per page double spaced)


  

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