How important were credit and hire purchase as reasons for economic growth in the USA in the 1920's

During the 1920's USA was in a boom. The country was growing very fast, also the technology. This was a very big econimic growth. One of the cause were credit and hire purchase, the importantece of this cause is still being debated.

On one hand the people could buy things and pay them later. By this way people bought things. For example this helped to increased the demand of radios in the lower classes. It also helped to sell more cars. This helped the economy because people bougth things only from their country. Also they had to put the 10 per cent of the cash needed to buy shares and could borrow the rest, so they had more money to invest on the companies. Futhermore the speculators pay only a part of the shares and then when they get the profit they pay the rest and in that way they were getting rich.

 On the other hand the Republican goverment maintein taxes low, so people spend more money, this action was called laissez-faire. Peopple with low economy can not bought a radio or a car, so they asked banks to give them credits. By this way economy growth because they can bought products. While the overproduction was facid and economic problem. Despite the credits helped to increased the production, people had what they wanted, due to the mass marketing and the propaganda, so they did not wanted to buy more things.

The electrification allowed industries to developed betters products, like vaccum cleaners, cars and radios, this things need petrol to make plastics, this was not important for credits

and hire purchase for economic growth. Other reason for the economic growth was the first world was, Europe was poor so they can not competed with USA. USA have raw material so they do not need things from others countries. USA have a good industries.

Finally credi and hire purchase were an important cause of the economic growth in the 1920's, but there were others importanted causes, such as Republicans polices, mass-marketing, mass production, the investion of plastic, the electrification and the markets gained during the first war world.