Final answer:
During the 1920s, American consumers widely embraced the newly available consumer goods and technologies, fueling a period of mass consumption facilitated by increased economic productivity, mass marketing, and the use of credit. As consumer spending shifted towards new products and leisure activities, the decade saw unprecedented economic growth, but also growing economic disparity and overreliance on credit, which eventually contributed to economic fragility and the onset of the Great Depression.
Step-by-step explanation:
Response to Economic Productivity in the 1920s
In the 1920s, American consumers responded to increased economic productivity by embracing new patterns of consumption. The decade was characterized by a remarkable economic growth, resulting in the mass production of consumer goods such as automobiles and household appliances. This growth was facilitated by advancements in technology and the proliferation of mass marketing techniques. As a result, a national consumer market emerged, changing the local economic landscape and increasing the stock market value. People began spending a larger percentage of their incomes on new consumer products, recreation, and home appliances, rather than on staples like food and utilities.
The availability of credit allowed even more Americans to purchase luxury items which were now mass-produced and more affordable. These included items like radios, automobiles, and mechanical refrigerators. By the end of the decade, nearly everyone could afford a radio, and those who could not could build one using a homemade radio kit. Credit seemed to offer a path to a better life, helping to democratize desire and spurring mass consumption. Yet, rising prices, stagnant wages, unbalanced income, and overbuying on credit eventually revealed an underlying economic fragility.
Late in the decade, issues such as rising prices, stagnant wages, and unbalanced income began to limit the ability of Americans to continue purchasing at the same rate. The uneven distribution of income meant that fewer consumers could participate in the economic advances, which in turn, contributed to the onset of the Great Depression. The period reminded Americans that while material goods brought temporary pleasure, material security was too important to risk.