New Consumerism of the 1920s - Term Paper Example

New Consumerism of the 1920s Introduction The Great Depression was a global economic crisis that plagued majority of the developed world during the 1920s. There are many factors that led to this horror of a financial crisis that many Americans, and the rest of the world, had to face. The new consumerism of the 1920s was one of the key factors that fueled the notorious economic path ending with the Great Depression. In addition to the new consumerism of the 1920s, other factors aided in the faltering economy that awaited most Americans. Independent schools of thought like the Ku Klux Klan and the Christian Churches were also prominent in the Jazz Age, a time that was referred to as the roaring twenties. Hence, it is evident that the causes of the Great Depression were not only domestic but also international. Discussion Consumerism is an economic concept that refers to the act of increasing acquiring goods or services in increasing amounts. The concept can also be as a result of social pressure and encouragement that amassing consumer goods is advantageous to the economy. Human beings like to eat, buy ornaments, clothes, phones and other necessities and luxurious products. The art of consumption has a history. Consumerism was most prominent in the 1920s as an aggressive tactic of corporate survival. During the Jazz age, there was a short term abundance of affordable, storable, concentrated and portable energy in the form of fossil fuels. Hence, the rate at which economic resources were being extracted increased due to the availability of extraction equipment like chain saws, powered fishing boats, powered mining equipment, tractors and many more. The extraction was also made possible because of petrochemicals and the use of powered assembly lines, allowing corporates to venture into bulk manufacturing of commercial consumer goods. The new consumerism was dubbed “the American Way” by corporate manufacturers in a bid to influence the American citizen to buy because it appeared to be the only way to contribute to the economy. Hence, the emphasis on consumerism led to overproduction, a case where there are too many products chasing too few buyers. The manufacturers and producers efforts to preserve corporate welfare led to the economic crisis that culminated to the Great Depression. The 1920s was an era in which President Calvin Coolidge promoted a pro-business government in a bid to turn around the economic hardships of the First World War. As a result, companies such as the Ford Motor Company, headed by Henry Ford, became mass producers to the easy availability of steel, glass, oil, and rubber ("Roaring Twenties to Depression" 2). Ford Motor Company became a domestic success and looked to expand into foreign markets. Henry Ford increased the salary of his employees, increasing the marginal propensity to consume (a concept that refers to an increase in expenditure due to an increase in disposable income). America’s motto was more spending, less saving. Everything was mass produced, even popular culture. American’s found pleasure and entertainment in movies, sports and theatre. For this reasons, movies were mass produced and many movie stars were born. Americans found heroes and role models in movie stars and sports personalities. For example, George Herman Ruth was viewed as a free-spirited individual that inspired many. Jack Dempsey was a revered boxer who was not confined by bureaucracy ("Roaring Twenties to Depression." 3). Other heroes include Charles Lindbergh, the pilot who flew solo across the Atlantic and Knute Rockne who presented football as a representation of teamwork and hard work. Americans became fascinated by these individuals that by the end of the decade, over ten million households owned radios. The popularity of the radio gave birth to Jazz music, a distinctive genre invented by African Americans as a form of music for the rebellious youths. Manufacturers continued advocating of for mass expenditure through advertising campaigns and radios, new clothes, new ornaments, new cars meant that there was more money flowing in the economy than was being saved. However, the rising dominance of consumerism mostly revolved around the top earning Americans, a group of elite individuals and high income earners that fueled consumerism through their reckless spending. On the contrary, the poorer majority never had the chance to engage in “the American Way” because while the wages of the elite Americans increased by 75% in 1929, the less fortunate Americans only saw their income increase by 9%. The difference means that the majority of the population did not have the disposable income to meet the mass production of consumer goods produced by manufacturers. The result was a case of too many goods, chasing too few consumers (overproduction), which led to the Great Depression. Another significant aspect that influenced the new consumerism of the 1920s was the new social media, a group of advertising companies that liaised with newspapers, magazines and radios to shove consumerism into American lives as the only way to save the economy. During this decade, many people bought a lot of shares. The number of stock owners rose from 4 million to 20 million. All these were influence by the new social media that advertised overpriced stocks that bore artificially low interest rates. Another issue that increased the rate at which people bought stocks and other consumer goods was the availability of cheap and easy credit. The availability of credit and unsecured loans meant that people could “buy now, pay later.” The fact that people could buy stock with a 10% down-payment meant that people could purchase as much stock as they liked due to the promise of a booming economy. Consumers took more debt to purchase luxury cars that they couldn’t purchase upfront and other luxurious products that the “new media” advertised aggressively. At the end of it all, manufacturers sold more products and the financial industry collapsed in 1929 due to the inability of stock owners to repay their debts. Most of the shares rose due to increased demand, not as a result of growth of the economy. Hence, a weak banking system led to increased debt, triggering a collapse of the stock market, and with it, came the great depression. One of the groups that sought to stabilize the horrors of the 1920s was the Ku Klux Klan. The Ku Klux Klan was one of the largest groups to proclaim defense of family, traditional values, and morality against the threat posed by feminists, Catholics, African Americans and Jews. The group became prominent in the political arena, declaring violence against those minority groups that were different from themselves. The group influenced America’s love for fraternal societies, a trait which saw them recruit over three million members within the 1920s, impacting state politics significantly. The Klan was a racial group that advocated for racial violence against African Americans and Catholics. The Klan, Christian Protestants upon formation, sought to cleanse the country of immigrant Jews and Catholics. Other objectives included solving the problem of urbanization, communism, and industrialization (McWhirter 65). Conclusion It is evident that the causes of the Great Depression were not only domestic but also international. The Great Depression was an economic crisis that culminated in an era of increased consumerism, unsecured loans and easy credit, social media influence on consumerism and overproduction in a bid to improve corporate welfare. The new social media led to increased consumerism which prompted manufacturers to produce more goods to meet the increasing demand. Banks triggered consumerism by offering easy credit to consumers, increasing their expenditure on stocks and other products, causing the collapse of Wall Street and the Great Depression. Works Cited Heinberg, Richard. "The Brief, Tragic Reign of Consumerism-and the Birth of a Happy Alternative." Post Carbon Institute. 14 Apr. 2015. Web. 5 May 2015. . McWhirter, Cameron. Red Summer: The Summer of 1919 and the Awakening of Black America. New York, N.Y.: Henry Holt, 2011. Print. "Roaring Twenties to Depression." Web. 5 May 2015. . Tanner, Neal. “The Easy Life of the ‘20’s Contributed to Great Depression.” Web. 5 May 2015. . Read More