... America's economy. Advertisers talked Americans in to buying consumer goods which weren't always necessary. They used newspapers, radio, billboards and many more to persuade people to buy these goods. How did the Americans pay for al these goods that were advertised then? They would borrow the money. The US lent money to allies in WW1 and that money was then paid back with interest. So banks had plenty of money. In the 1920s hire-purchase began. Goods were paid for in instalments. You did not have to pay the full amount at one you would repay a little each month. This meant you could buy more. Approximately half of the consumer goods sold were paid for by hire-purchase in the 1920s. The government kept taxes low, this resulted in business's having more money as they could keep more of the profit they made. Businesses used this money to make ...

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