Question

Respond to the following based on your reading.

With the economic good times and peace of the 1920s, Americans found themselves
focusing on new consumer opportunities available to them. From automobiles to
radios, the buying options grew greatly for Americans. Many Americans began
borrowing money (opening lines of credit) to buy what they wanted and needed.
How could consumer credit be a good thing? What down sides can consumer credit
have?

Answer 1

The good aspects of consumer credit:

It would allow people to buy now what they might not have the money for immediately.

If the borrowing is used to invest in generating income or building marketable skills (education) it could more than pay back what is owed.

Down sides:

The money must be paid back with interest.

Borrowing may encourage people to buy more than they really can afford.

Step-by-step explanation:

Answer 2

Step-by-step explanation:

Consumer Credit is good for an economy because it helps create jobs and boosts GDP and it gives consumers an opportunity for a better life with better products the downside is debt. giving credit holders a unfair and sometimes manipulative advantage over a consumer of credit.