During the 1920s, many U.S. citizens felt that their prosperity would never end.
Producing Great Quantities of Goods
Buying Goods on Credit
"No, I talked it over with John and he felt we could not afford one."
"Mr. Budge who lives in your town had one and they are not as well off as you are."
"Yes, I know. Their second installment came due, and they had no money to pay it."
"What did they do? Lose the car?"
"No, they got the money and paid the installment."
"How did they get the money?"
"They sold the cook-stove."
"How could they get along without a cook-stove?"
"They didn't. They bought another on the installment plan."
President Coolidge has been elected for his frugality, but the citizens were now becoming care-free. Most Americans were very happy with their present lives. They didn't fear the future at all.
Producing Great Quantities of Goods
- Many manufacturing companies were being created
- Chain stores were selling clothes, food, and drugs, and they were spreading quickly
- Banks were able to branch out inside the cities they were originally located
- Workers and managers were receiving a larger gap of pay
- Iron companies, railroads, and farmers weren't very prosperous
- Thanks to new machines, more food was being produced than could be consumed, and food selling prices were dropping
Buying Goods on Credit
- The Installment Plan allowed people to buy products without using money at the current time because banks provided the money at low interest rates
- Some were worried that the Installment Plan was a sign of weakness and was superficial prosperity
- A business owner wrote a letter to President Coolidge telling of a conversation he heard. It read as follows:
"No, I talked it over with John and he felt we could not afford one."
"Mr. Budge who lives in your town had one and they are not as well off as you are."
"Yes, I know. Their second installment came due, and they had no money to pay it."
"What did they do? Lose the car?"
"No, they got the money and paid the installment."
"How did they get the money?"
"They sold the cook-stove."
"How could they get along without a cook-stove?"
"They didn't. They bought another on the installment plan."
President Coolidge has been elected for his frugality, but the citizens were now becoming care-free. Most Americans were very happy with their present lives. They didn't fear the future at all.