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1920s Consumerism — Reading Comprehension

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HSS 11.2
RI.6-8.1
RI.6-8.3

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This passage examines the rise of consumerism and the use of credit in the United States during the 1920s. Students will learn how Americans began purchasing new products like cars, radios, and household appliances, often using installment plans that allowed them to pay over time. The text highlights the cultural and economic changes brought about by these practices, as well as the risks and long-term consequences that contributed to the onset of the Great Depression. The passage is aligned with HSS 11.2 and CCSS.RI.6-8.1, RI.6-8.3, helping students analyze historical cause and effect, vocabulary, and evidence-based reasoning. Included are a glossary, multiple-choice quiz, writing activities, graphic organizers, and a timeline. A read aloud audio and Spanish translation are provided, along with differentiated versions for accessibility. This resource supports critical thinking and historical understanding about early 20th-century America.

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credit card machine, debit card machine, credit, machine, debit, card, cards, electronic, debit, debit, debit, debit, debit — Rise of consumerism with increased use of credit cards.
Source: Pixabay - AhmadArdity

The 1920s in the United States marked a significant shift toward consumerism, or the increasing desire to purchase goods and services. During this period, American society experienced rapid changes as new inventions such as automobiles, radios, and electric appliances became available to the general public. Factories produced these items in large quantities, making products more affordable. This transformation in how people lived and worked was closely tied to changes in how Americans paid for their purchases.

One major development was the widespread use of credit. Instead of needing all the money up front, shoppers could buy items using new installment plans. These plans allowed people to take home products immediately and pay small amounts over time. This innovation made it possible for even middle-class families to enjoy modern conveniences. However, buying on credit also encouraged people to spend beyond their means.

As advertising grew more influential, companies persuaded Americans that having the latest products was essential for happiness and social status. Businesses used persuasive language and images to appeal to people’s desires. This led to a cultural change where owning modern goods became a symbol of success. The rapid expansion of credit and advertising went hand in hand, fueling a cycle of buying and spending.

However, the new system was not without risks. Many families accumulated debt as they struggled to keep up with payments. If someone lost their job or faced unexpected expenses, they could lose the items they had purchased or face financial hardship. These personal problems reflected a larger economic issue. As millions of Americans borrowed more, the nation’s overall economy became more unstable.

The popularity of installment buying contributed to the economic boom of the 1920s but also helped create the conditions for the Great Depression. When the stock market crashed in 1929, many people lost their jobs and could not pay their debts. Businesses that depended on constant sales struggled to survive. The cycle of debt and declining purchases led to widespread unemployment and hardship across the country.

Despite these negative outcomes, the 1920s left a lasting impact on American life. The idea of buying on credit changed the way people approached purchasing decisions. It also influenced future economic policies and consumer habits, shaping the modern economy we know today.

Interesting Fact: By the end of the 1920s, almost 60% of American cars and 80% of radios were purchased using installment plans, showing how widespread credit had become.

What is consumerism?

Wanting to buy more goodsSaving all your moneyGrowing your own foodMoving to a new city

What did installment plans allow people to do?

Pay over time for goodsGet free productsSave money at banksWork in factories

What happened in October 1929?

Stock market crashedRadio was inventedCredit cards startedFactories closed

How did advertising affect people?

Made people want new productsHelped people save moneyClosed many storesReduced job opportunities

Why did buying on credit create risks?

People could not pay debtsProducts became too cheapAdvertising cost too muchFactories stopped working

What was one effect of the Great Depression?

Unemployment increasedMore people bought carsAdvertising endedInstallment plans stopped