How important were credit and hire purchase as a reason for economic growth in the USA in the 1920s?

In the 1920s, th boom marked an era in the history of USA. Hire purchase and credit were one of the reasons why the economy grew. It had important and not to so important points.

On one hand, one of the important points was that producers created new effective marketing techniques due to the fact consuming was massive. New jobs were created thanks to the division of work. That is how car’s production increased abruptly. Catalogues algo inspired people to buy more. “Buy now pay later” was the most effective technique, where people could use some lent money for buying and then paying. Speculators originated there. They asked for loans in banks for then buying actions, supposing that the price will rise and they will keep some money as an interest after paying the loan.The confidence that people had on the banks and the country was enormous.

On the other hand there were less important points. Republican policies were a secondary factor. Laissez faire didn’t allow government to interfere in men’s life; rates protected the companies; Lower taxes so that American Trade improves; and trusts where big corporations managed the industries. The division of work, that improved speed in production and made cheaper the products. After the WWI, USA was the most powerful chemical industry. Consumer goods for houses production doubled, like vacuum cleaners and radios. Work for people was easier now that electricity expanded all over the country. It made things faster and in consequence, hours of working also reduced. Publicity in radios were also applied for inspiring people to work and buy. By that moment, oil and technology industry in USA were leading in the world after the WWI. They exported everywhere, from Latin America to even Europe. However, the most important was the new film industry, which improved entertainment for people on their leisure time.

As a conclusion, it would be true to say that those years in USA were pure and exclusively to make money. People were happy and confident cause they spent their time on working for then making money and spend it later. It recovered USA from isolation and WWI, making it powerful and great again.