Question

Which of the following factors contributed to American consumer spending during the 1920s? A. Middle-class workers were being paid fair wages. B. Shortages encouraged people to buy while they could. C. Soldiers came back from the war with lots of money. D. An excess of many products kept prices down.

Answer 1

The factor that contributed to the American consumer spending during the 1920s is option A) “Middle-class workers were being paid fair wages.” The 1920s was a decade of prosperity among middle-class Americans due to the rise of earnings so they had more money to spend. Consumption spread in the American society in the 1920s and Americans were able to buy goods such as radios, cars and clothing, which they could not afford before.  

To sum up, higher wages among Americans help increase consumption patterns in the 1920s.