In the 1920s, excessive credit expansion led to an unstable economic bubble marked by significant consumerism but also by a fragile economy due to unbalanced income and reliance on credit. By the 1930s, the ensuing Great Depression drastically reduced credit availability and consumer purchasing power.
In the 1920s, there was too much credit extended to consumers which contributed to an economic bubble. During this time, there was a significant amount of economic growth and consumerism, but it was underpinned by rising prices, stagnant wages, unbalanced income distribution, and an overreliance on credit.
This led to fewer Americans being able to purchase goods, resulting in a fragile economy. By the 1930s, the issues of the previous decade culminated in too little credit being available, as the Great Depression took hold and consumers' purchasing power significantly diminished.