Fueled by easy money the nineteen-twenties were boom times like never before. The post-war recession was overlooked as everyone went on a spending spree. Credit, rather than savings, allowed consumers to improve corporate revenue to new levels. Boom and Bust in the U.S. The 1920’s saw new discoveries and innovations in almost every field of effort that became the building blocks of thriving businesses.

Patent attorneys do a roaring trade and almost every man fancied himself as an inventor if the amount of patent submissions was anything to put into practice. New business and production methods along with intensifying business philosophies allowed manufacturers to improve turnover and to make large earnings that they plowed back to new factories and income rises. Department store and service station chains used substantial buying power and operating efficiencies to lower prices while increasing service and choice, assisting income to go further.

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Henry Ford used his huge buying capacity to setup discount food markets selling cheap groceries for his employees, much to the annoyance of local store owners. Increased incomes, along with the launch of credit funded an enormous increase in consumer spending. Only some of the increased affluence found its way into insurance as a provision for retirement. There was an economic downturn in 1921 but it was allowed to run its course without politics interference and as a result it was over in 18 months.

As the overall economy picked up, easy credit and speculation created stock market and property bubbles that got disastrous results when they eventually finished. People living in the cities and areas of industry benefited most from the increased prosperity although there have been arguments to the contrary. Those residing in rural areas did not advantage to the same extent, which was compounded by common drought. This inspired population motion from rural areas to cities, day a pattern which includes continued down to the present.

In 1926 alone the Department of Agriculture calculated that the nett migration in favor of the towns was over one million people. Farmers banded together and integrated their farms to accomplish economies of range to be able to survive the crisis. A variety of farmers from orchardists to wheat farmers formed corporations. Than a dozen farms each having their own tractor Rather, vehicle, harvester etc, the organization needed much fewer. Bulk buys and sales reduced costs and increased marketing opportunities respectively. Herbert Hoover, the Commerce Secretary, organized within the Department of Commerce a Bureau of Standards that promoted standardization of practices and equipment with the objective of reducing waste in time, labor, materials, and capital within certain industries.

The standardization was essential to help industry cope with the rapidly increasing needs being placed onto it by consumer buys. Shoppers were able to buy big ticket consumer stuff like cars, fridges, washers, pianos, floor cleaners, furniture, and radios promptly payment. Previously, these expensive items were only affordable by the wealthy.

Advertising directed at stay-at-home mothers was designed to persuade them that instant gratification through instalment plan purchases was the new ideal. Once one maufacturer or dealer offered instalment purchases the competition were compelled to check out suit. About half of most instalment debt was for automobiles. It had been estimated that 75 per cent.

85 or 90 per cent. 80 %. of most phonographs, 75 per cent. 65 %. of floor cleaners, 25 per cent. 140,000,000 worth of clothing was also sold per annum with this plan. When British manufacturers saw how instalment selling had boosted American business they introduced “buying on tick” to THE UK.