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For your notes
Your notes should answer the following questions!
Your notes should answer the following questions!
If you don't know what to write: Write the question & answer!
How did many people buy the latest consumer goods of the 1920s?
2. What is an installment plan?
3. How did banks react when the Great Stock Market Crash happened in 1929?
4. Give one example of a typical installment plan from the advertisements at this station.
Installment Plans
Installment Plans
Most people could not afford to buy the latest products and goods. So people used credit to buy goods and went into massive debt.
People bought on installment plans (dividing the prices out into smaller payments with interest charged over time). For example, 3 out of every 4 radios were purchased on credit along with 60% of all automobiles and furniture.
When the Stock Market Crash of 1929 occurred, banks needed cash so they started demanding that consumers pay back their installment plans. Also, consumers stopped paying back their installment loans once the Depression worsened. This caused banks to lose millions of dollars.
Look at the advertisements from the 1920s to learn more about the lure of installment buying
Look at the advertisements from the 1920s to learn more about the lure of installment buying
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