I remember reading an article that showed that in the lead up to the Great Depression personal debt levels reached historical highs. Everyone was buying the expensive newfangled "Wireless sets" for their homes, new cars, all manner of personal stuff, all on credit. There was a big housing price boom too and rural land had gone up a lot, many farmers bought a "town" house to stay in when coming to town. It was the boom years, the roaring Twenties. When the credit bubble collapsed after the stock market collapse everyone was hopelessly broke, even formerly wealthy people, no one had any money was the term often quoted. After the Depression and war things slowly came back but people avoided debt like the plague. A home sure, but that was it! And they worked hard and scrimped to pay it off as soon as possible, to get out from under.
All that changed around 1980 with the invention of credit cards and other personal lines of credit. And today? Looks just like an extended version of the 1930's to me...
All that changed around 1980 with the invention of credit cards and other personal lines of credit. And today? Looks just like an extended version of the 1930's to me...