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How did buying on credit and advertising change the economy and change many Americans' attitudes toward consumer goods?
Henry Ford was not the only businessman who understood that mass consumption was necessary for American prosperity. Other businessmen also realized that they could only sell their products if consumers were wealthy enough to purchase them.Businesses also encouraged Americans to purchase more goods by using advertising to persuade Americans to become consumers. Advertising became one of the largest businesses in the U.S. during the 1920s. Furthermore, by extending credit to consumers, businesses further encouraged them to purchase items that they could otherwise not afford. In the nineteenth century, many Americans thought that it was unwise or even wrong to go into debt, except when absolutely necessary. But because automobiles were expensive, most Americans could purchase them only by taking out loans, which could be repaid over many months or years. The General Motors Corporation began offering credit to consumers in 1919. Henry Ford was at first reluctant because he still held the older belief that it was wrong to go into debt to purchase unnecessary goods. But the Ford Company had great success selling Model T's on credit. The automobile introduced Americans to the practice of living in debt, and many consumers soon began to purchase furnishings, phonographs, radios, and other expensive consumer items on credit.
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