Economic Aspects
of the 1920s
The installment plan had enabled people to buy goods over an extended time, without them having put down a lot of money at the time that they purchased it. People could purchase automobile, household appliances, homes, furniture, and other items. It was supported by advertisers. Economists and business owners were highly worried about the installment plan. To the non-supporters, the plan was a sign of fundamental weakness as well as fake economic prosperity. People use it more now often then they did and it causes people to go into debt and loose their home.
The stock market crash led to the Great Depression in 1929. Many investors became convinced that stocks were a sure thing and borrowed heavily to invest more money in the market. Sadly 1929 was the year that stocks went down a slippery slope and declined. In 1932 and 1933, stocks hit rock bottom (down 80% from their highs in the late 1920s). Perhaps the most important effect was chaos in the banking system as banks tried to collect on loans made to stock market investors whose holdings were now worth little or nothing at all. Worse, many banks had themselves invested depositors' money in the stockmarket. Depositors quickly rushed to withdraw their savings. People now aren't using it because of the stock market crash.
Advertising in the 1920s was when people used new methods of enticing buyers to desire new products through new media like the radio. The advertising industry grew in perfect harmony with the emerging industries of mass culture (especially network radio and Hollywood movies). People now are becoming obese and unhealthy because of they think its ok to buy that item.