During the roaring 20s, consumerism was the dominant philosophy in American society, the stock markets were considered invincible and the economy to be growing. Consumerism led people into buying more products such as automobiles, washing machines, etc in installments. Eighty percent of the Americans in the 1920s had no savings at all. Their lives were dependent on the paychecks. while the rich one percent of people's wealth grow tremendously but the wealth of the rest of the population grew only by 9 percent, causing income divide between rich and poor. Although the economy appeared to be thriving, in reality, it was false prosperity, where most of the population had no savings. The Americans were buying more and saving less, which was a contributing factor to the great depression. it increased the amount of consumer debt.
