Consumerism in the 1920’s

Consumerism- the theory that an increasing consumption of goods is economically desirable, or the actions of buying by the public American’s were very confident about the economy in the 1920’s. 3 main factors contributed to consumerism Mass Production of Goods Advertising Creation of Credit and installment buying Consumerism

Mass production made technology affordable to the middle class in the 1920’s The automobile industry profited most from mass production. ($300 for Model T) The biggest impact of early mass production was in manufacturing everyday items, such as glass and canned food. Basic appliances were invented, radio, phonographs, etc were all in high demand Mass Production

Radio advertising became the grandstand for mass marketing Radio advertising became the grandstand for mass marketing. Radios were expensive but they were viewed as a necessity by consumers. Watching a movie was cheap and accessible, wildly popular due to advertisement on radios and movie posters. Advancements in movies.. “Talkie” motion pictures were innovated First “talkie” was The Jazz Singer First animated film was Steamboat Willie Advertising

Credit- the ability to buy goods or services before payment, based on the trust that payment will be made in the future Credit available to more people in 1920s Credit helps businesses boost their profit and sales People also bought using installment plans., pay small amounts toward the final purchase Creation of Credit

Stock Market Stocks portrayed as a reliable and smart investment for the future in the 1920s A large number of people bought stock so the stock market prices began to rise Seen as a way for short term investment to become rich quick...speculation fueled more buying and higher prices People borrowed money to buy stock…”buying on margin” As long as price stayed high, things were good…price drops, market drops

Problems Caused by Economy of the 1920’s Government in the 1920’s took a “hands off” approach to regulating businesses for the most part. This laissez faire attitude meant businesses made more profits, but made riskier business decisions. Problems Caused by Economy of the 1920’s

Problems Caused by Economy of the 1920’s 1920s: the people of America were confident that the economic ”boom” would go on forever. The caused a big problem. The factories were making too many goods. (known as overproduction) People were over-speculating in the stock market…anticipating stocks would always go up, up, up! Inequality in wealth also contributes to the upcoming “crash” of the late 1920’s Consumer buying eventually slows down Problems Caused by Economy of the 1920’s