While consumerism during the 1920s boosted the economy, it also led to?

Question:- While consumerism during the 1920s boosted the economy, it also led to?

Answer

The level of consumerism during this period contributed to the growth of the economy because it created demands for various products and services however, it resulted in poor borrowing habits and an increase in social stratification. The majority of Americans accepted the concept of ‘purchase on instalments’ and went deeper into debt to make their purchases. This practice enabled them to obtain products they could not afford at the moment, but at the same time, they were exposed to economic fluctuations, such as getting laid off from their jobs.

Additionally, economic growth also translated to increased consumption and as it has been averred earlier, during this period, the consumers benefitted with a portion of the growth wealth filtering up to the apex end of the pyramid, making inequality worse. This had an impact on the imbalance in the economy that in the following decade resulted in the Great Depression.