Consumerism
According to Merriam-Webster online dictionary, the definition of consumerism is "the theory that an increasing consumption of goods is economically desirable; also : a preoccupation with and an inclination toward the buying of consumer goods"(Merriam-Webster). The 1920s brought a massive spike in consumerism. Modern advertising was urging consumers to buy more and more, even if it meant living beyond their economic means. Installment plans just kindled the fire of consumerism, making it easier to buy products even if people couldn't afford them. Installment plans allowed consumerism to buy an item and not have to pay for it for months down the road.
False prosperity
The 1920s was a time when Americans believe their nation was doing better than ever. Big business and the stock market were growing at a substantial rate. For the rest of the nation the prosperity was not as great. However, many Americans got behind the idea of their prosperity being as great as that of big business which led them to over-value their worth and live beyond their means.
Income Gap
Further supporting the idea of "false prosperity" was the income gap in America. The poor were getting poorer while the rich business owners had the only real prosperity. According to the textbook, "The top 1% of wealthy Americans saw their incomes increase by 75% during the 1920s...The other 99% of Americans saw their incomes increase by only 9%" (Textbook). Over half of Americans were living below the poverty level. Uneven wealth distribution led to a false sense of prosperity and helped cause the Great Depression.