The Role Of Debt During World War II

Credit was born from Alfred Sloan, “ He set up the nation 's first national consumer credit agency in the 1919 to make his cars affordable”( Digital History). Sloan wanted to make money, sloan was convinced that Americans were willing to pay extra for luxury and prestige. Thus he he created credit so people would buy his cars, even if they were costly. With this new product many americans began to buy cars, clothes,furniture,household products,e.t.c. Pretty soon cars came a symbol of the new society forming in the 1920’s.”In that year, one American out of every 5 owned a car, compared to one out of every 37 English and out of every 40 French car owners”(Digital History). In other words Sloan didn’t care about lowering his price so that more people could

Peñaloza, L., & Barnhart, M. (2011). Living U.S. capitalism: The normalization of Credit/Debt. Journal of consumer research,38(4), 743-762.

Everyday someone becomes in debt because of car financing, a loan, or rent to own 3DTUcompanies. You have to be careful when dealing with some of these companies; they advertise their service as the best deal ever but never put the down side to the contract on paper. According to Kimberly Amadeo In December 2016, U.S. consumer debt rose 4.5 percent to $3.76 trillion. Of this, $2.767 trillion was non-revolving loans, and it rose 5.1 percent. Loan Companies use media to get the attention of potential clients and to persuade them into buying their services. Here we are going to look at two different types of media that comment on debt. Media one is a commercial from Scarsdale Ford and media two is and ad from a Loan Company

In the early 1980’s the conservative government headed by Margaret Thatcher, began to liberalise the financial industry. This promoted more competition between firms to attract customers, and offer credit facilities to a wider range of consumers. Companies used aggressive marketing to attract customers, but the amount of different products available on the market to customers made it confusing, and many took on loans and credit cards without fully understanding the product they were buying, or the interest rates they would have to pay. This resulted in a wider range of consumers having access to buying goods on

In the book Hamilton’s Blessing, Gordon uses economic history and theory to explore the start, rise and decline of the United States debt. Gordon opens his book by stating that this country was born in debt, and this debt has become so high that concerned individuals no longer think of it. Throughout the book, he traces the history of the national debt dating back from 1791, when the central bank of the United States was created, up to modern days. The intellectual architect of this creation was Alexander Hamilton, the first Treasury Secretary as well as a central figure who had a deep impact on the economic development of the United States. The title of the book clearly recalls Hamilton's statement that a national debt, "if not excessive,

World War II had a major impact on America. America did suffer economic crisis from the

World War II began near the end of the worst financial crisis in American history, the Great Depression. In October 1929 the stock market crashed leading to a economic collapse that would become known as the Great Depression. The depression went on to devastate the American economy throughout the 1930’s until its end in the 1940’s. Around this time, Nazi imperialism and frayed international relationships were setting the stage for the largest global conflict ever. World War II ended the Great Depression through increasing government spending, expanding the job market, and growing the national economy. The New Deal attempted to achieve these goals, but was largely unsuccessful.

discount on a purchase is a nice touch as well. I'm wondering how many closed their credit card accounts when

Franklin Delano Roosevelt had a dream for the people of America. To overcome this financial burden and to get our country back on track again like before. Like in the poem 'Debts' by Karen Hesse, even though they may be struggling now to make ends meet, as long as the keep their hope no matter how small it may be they just might pull through. Roosevelt had done his best to get this country back on its feet as he promised in his 1932 campaign. He gave Americans hope about a new life that'd be coming soon. He'd worked on his "brain trust ", New government deal programs, and finally all the effort he put into this country. "Brain Trust" is a group of people who'd been very close to the president. All of them had worked in different fields. And

drawing upon past tax reserves." , Is it a good idea? Why does the U.S.

The government has ensured the money will be repaid through the wage garnishment system. Only a small percentage of consumers endure this process because debt can be collected by numerous means (Arnold). In response, credit debt was virtually non-existent until 1970, now Americans have an average of $3,500. A time used to exist where only the wealthy had access to credit cards, but the credit score industry caused financial companies to feel comfortable with the broadening of credit cards across the population (Indiviglio). Letting consumers purchase those big-ticket items also enables them the ability to spend more holistically. For example, $20 cash is manageable for a few groceries, but a credit card can cover those groceries and a new television simultaneously. Credit cards seem to give consumers an infinite amount of money at their fingertips. After so much debt has risen, creditors resort to the courts. Over a million lawsuits are filed annually concerning credit card debt, which does not seem like a small percentage (Arnold). And through wage garnishment, creditors collect their payment whether the consumer can afford it or not. The consumers should not be treated in this manner for using a credit card in the means that it was distributed for.

Sears allows customers to pay for merchandise over time if they use the company’s proprietary credit card. Sears opened 24 million new credit card accounts over a 3 year period and had 27 million active

As a retailer, it would be wise to extend credit to my customers. First of all, it is an easy solution that allows customers to buy goods and not worry about paying them upfront. By doing so, my business can increase sales, and gain more customers which is a must if I want the company to be profitable. Secondly, offering credit can encourage customers to spend more since they have more time to account for the debt. This type of timetable provides more oriented customers focused on purchasing than being sensitive to prices.

things at the time was the anguished to look for food because at least 20 million people starved to death, as a result of malnutrition and other diseases towards people.

During the 1950’s when credit cards were first introduced to society they were used because they were convenient to have. People didn’t have to worry about running to the bank if they didn’t have enough money to make a purchase. Furthermore now there are really different reasons than before to have credit cards. In the American society luxuries have become a necessity and to keep up with the latest luxuries many of us turn to our credit cards (Zumello 2011). Stores caught on to all of this and they figured out that in order to keep their customers fidelity and have them come back even if they don’t have money they must issue credit cards for their customers. Department stores would reward you as long as you make your payments on time; however as soon as you miss one