4 examine the table of goods the author suggests are

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4)Examine the table of goods the author suggests are things that Americans in the 1920’s desire.What trends or patterns do you notice?5)What does,“We are urged on the highest authority to spend rather than to save. Only byspending can we make the wheels of industry turn. We are urged deliberately to waste material.Throw away your razor blades, abandon your motor car, and purchase new” tell you about howoften consumers were buying these goods? Is this type of consumerism still around today?
Class ActivityPart B: CreditDirections:Examine the letter from 1926 about the increased use of credit in the American economy and thenanswer questions 6-8.Source Info:New York Labor Bureau, Inc. “Installment Buying”Facts for Workers: The Labor BureauEconomic News,LetterApril 1926A writer in theAmerican Mercuryreports the case of a mechanic in Texas who received, when workwas available, $6 a day. Sundry [several] high powered salesmen had sold him a second-handautomobile for which he had contracted to pay $30 a month; a set of plush and fumed-oak parlorfurniture for an equal monthly sum; a piano, a gold watch, a baby carriage, and a diamond ring. Thesum total of his monthly installments came to more than his total monthly wages, provided heworked every day which he didn’t. . . .We as Americans are so loaded up with monthly payments [on the installment plan] that we have tocut down on pork chops and warm underwear. Already manufacturers of essentials like the PacificMills (textiles) and the Endicott Johnson Corporation (shoes) are finding that installment buying iscutting into their business. Thus the whole national manufacturing program is liable to be made topheavy with non-essentials, while the lower income groups find themselves actually sufferingbecause they cannot buy the necessities which the family needs. In this vicious circle there is thepossibility of a very ugly day of reckoning. . . .If installment buying of non-essentials continues to grow as it has been growing, it is difficult topredict anything but disaster. Either the movement must be checked, and that very soon, or elseways and means must be discovered for increasing the purchasing power of the workers. If realwages can be made to go up fast enough, they can absorb the installment burden, which leaves itpretty squarely up to the manufacturing and banking interests. If they want to sell their luxury goodsand keep the country prosperous at the same time, they must increase real wages.6)According to the first paragraph, a mechanic in Texas bought a car for which he was supposedto pay $30 / month.He earns $6 a day.How many days would he have to work in order to payeach monthly installment of the car payment?7)According to this article, is it possible for the American economy to survive if peoplekeep on buying on credit at the rates which they have been?8)According to this article, what has to rise in order for the economy to stay afloat?

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Term
Spring
Professor
Donegan
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