What Was One Sign of a Weakening Economy in the 1920s?

What Was One Sign of a Weakening Economy in the 1920s?

What Was One Sign of a Weakening Economy in the 1920s?

One sign of a weakening economy in the 1920s was a growth in debt by the average American. Many new inventions arrived on the scene to make life easier and more enjoyable. Americans wanted all of them, and they were willing to go into significant debt to have them.

Installment plans became popular during this decade, especially with the growing popularity of cars. Consumers found themselves going deeper and deeper in debt to live the good life. Combined with stagnant wages, growing unemployment and a weakening agricultural industry, these increasing debts became more dangerous. Americans also bought into the stock market more than usual, and the market seemed to be booming. Unfortunately, it did not reflect a true picture of the state of the economy.