Beneath The Vibrant And Vivacious Atmosphere Of The 1920S,

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Beneath the vibrant and vivacious atmosphere of the 1920s, the underlying issues of buying stocks on margin and increasing credit catapulted America into a series of struggles that would test the limits of its capitalist economy. Many middle-class Americans seized the opportunity to buy stocks on margin and utilize banks for loans so they could participate in the thriving realm of Wall Street and its potential wealth. But buying on credit wasn’t just limited to stocks and the bull market-- across the country, the rise of consumerism encouraged people to buy on credit and superficially raised the standard of living for millions of Americans. Unfortunately, the same buying on credit that allowed people to enjoy a lavish and fulfilling…show more content…
However, if the middle class did not take out such loans, they would be more financially stable in the 1930s, which would cause overall economic growth, since a stable middle class is vital to consumerism. When compared to the wealthy, the middle class spends a higher percentage of their income to purchase consumer goods, which causes overall economic prosperity (“The Stock Market Crashes”). Although the continued thriving of the economy would have benefitted the America of the 1930s, the absence of a severe recession like the Great Depression may have delayed or prevented many major economic legislations that protected the American public from the dangers of capitalism, such as the Glass-Steagall Banking Act of 1933 which created the Federal Deposit Insurance Corporation (FDIC) and the Social Security Act (“The Stock Market Crashes”). Since the 1930s, programs such as FDIC and Social Security have played monumental roles in ensuring the financial stability of Americans, and continue to have such significant impacts today. This prevailing stability of the American economy would have also led the continued dominance of the Republican Party and a greater faith in laissez-faire economic policies. During the 1920s, the booming consumerism created a financial stability that caused Americans to support a succession of only Republican presidents and the party’s stance on avoiding

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