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Credit Before the 20's
Before the 1920's there was no legal way for banks to make money off of loans, so no banks really did it. Although loan sharks were options most people stayed away from them for obvious reasons. -
Roaring Twenties
After the conclusion of WWI the US entered a huge economic boom. Brand new, top of the line, home appliance products were being invented and everyone wanted all of it. But they couldn't always afford it right away. Because of this, banks were able to give out loans without super high interest rates which made taking out a loan very common and almost normal for the average American. -
The Great Depression
In October of 1929 the Wall Street Market crashed marking the beginning of the Great Depression. The US was plagued by high unemployment rates and multiple business failures. During this time credit was highly irrelevant becuase nobody could afford to use it. -
WWII pulls the US out of the Great Depression
As World War 2 ended employment rates skyrocketed which boosted the US economy and played a large role in getting the US out of the Great Depression. -
Present Day
This brings us to present day America. Debt has become a serious problem in our country as people have been lead to believe that if you don't have a credit card or score, you can't buy any of the important assets in life. Consumer debt has tripled from 2010 to 2020, and we are experiencing debt growth like never seen before. Over 1.5 trillion is owed in student loan debt alone. This combined with the housing crisis happening in America right now shows how bad of a spot debt has put us in.