Essay about The During World War I

1567 Words Dec 7th, 2015 7 Pages
After World War I, the US came into an era known as the Roaring Twenties. During this time, many Americans dedicated their time to buying consumer goods such as cars, telephones, and radios. This in turn led to a period of great prosperity in the United States and Americans were more geared to letting loose and having fun. Americans had so much fun, they spent money they didn’t have. However, a large segment of the population did not get to share in the wealth as the gap between the rich and poor widened. Although worker productivity had increased by 32% within 1923 to 1929, worker wages had only risen by 8 percent while corporate profits increased by 62 percent. The richest 1% contributed to 40% of the nation’s wealth, the 5% of wealthiest people held 33%, while more than 60% of the population lived in poverty. However, this was of no concern at that time as the whole idea of credit ushered in more consumers.
Banks offered loans totaling over four billion dollars to the American public in attempt to stabilize the economy, but the debt only increased. The buy-now-pay-later mentality ended up doubling consumer debt by the end of the decade. This caused overproduction as Americans no longer had the money to buy the goods they produced, leaving a ton of supply and no demand. Since American banks had more interest in lending money to stock speculators rather to foreign companies, foreign companies purchased fewer American products as well. Because there was no demand, factories…

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