12.3 Consumer culture and credit expansion

The 1920s saw a seismic shift in American society as consumer culture took hold. Mass production, advertising, and credit expansion fueled a boom in consumer spending, transforming daily life and social values. New goods like cars and radios became widely available, changing how people lived and interacted.

This consumer revolution had far-reaching impacts on the economy and society. While it drove economic growth and job creation, it also led to increased materialism and debt. The foundations of modern consumer culture were laid, shaping American life for decades to come.

Consumer Culture in the 1920s

Consumer culture in 1920s America

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• Consumer culture shifted societal values and behaviors focused on acquiring goods and services, emphasizing consumption for self-expression and status
• Mass production and mass marketing emerged, fueling consumer demand
• Increased disposable income allowed for more discretionary spending
• New consumer goods became widely available (automobiles, radios, refrigerators)
• Purchasing shifted from necessity-based to desire-based, driven by wants rather than needs
• Post-World War I economic boom set stage for "Roaring Twenties" prosperity and cultural change

Factors driving consumerism

• Advertising growth through mass media (newspapers, magazines, radio) developed modern techniques appealing to emotions and creating artificial needs
• Advertising agencies and marketing research rose to prominence, shaping consumer desires
• Installment buying allowed purchases through regular payments over time, making expensive items more accessible (cars, furniture)
• Credit expansion introduced credit cards and charge accounts, relaxing lending standards
• Mass production techniques lowered costs, increasing affordability of consumer goods

Economic Impact and Consequences

Credit expansion and economic impact

• Consumer spending increased, stimulating economic growth and job creation
• Businesses expanded, investing in new production facilities and efficiency improvements
• GDP rose while unemployment rates fell, indicating economic prosperity
• Consumer debt accumulation created potential economic vulnerability
• Business cycle effects amplified economic booms and busts, contributing to Great Depression

Social consequences of consumer culture

• Lifestyle changes included increased leisure time, new technologies in daily life, and suburban living trends
• Materialism emphasized possessions as success indicators, creating social pressure to "keep up with the Joneses"
• Family dynamics and gender roles shifted as consumer culture reshaped domestic life
• Gap between social classes widened, reflecting disparities in purchasing power
• Consumer tastes homogenized, influenced by national advertising and mass-produced goods
• New industries and job opportunities emerged in consumer-oriented economy
• Environmental impacts increased due to higher resource consumption and waste production
• Art, literature, and popular culture reflected and critiqued consumer values
• Youth culture emerged, creating generational divides in consumer preferences
• Modern consumer society foundations laid, sparking ongoing debates about sustainability and overconsumption