How important were credit and hire purchase as a reason for economis growth in the USA in the 1920s?

In 1920 the USA´s economy boomed. USA was the richest country in the world. This economic growth was due to many reasons, one of them were credit and hire purchase. These were ways of borrowing money, credit consisted on requesting a credit to the bank and with that money people buy goods, Hire purchase consisted on buying  in instalments and paying them throw out the year. Some people said that these reasons were very important as a cause and others said they were irrelevant in comparison to others.

On one hand, some people aclaimed that they were very important. To begin, poor families were able to buy more goods. Furthermore, the new industries such as the motor industry started using these methods and thanks to them several industries developed and grew. In addition, banks developed too because more people that started requesting loans and also more firms. Most people that requested loans were speculators, they bought shares on margin and then they sold them more expensive than the original price. Therefore, by doing this many people became millonaire.

On the other hand, some people aclaimed these reasons were irrelevant and there were much more important reasons for the economic growth. The republican policies were one, the laissez-faire, this meaned the government didn´t interfere in the economy, the tariffs, were protective measures against foreign goods, the low taxation, people had more money to buy or invest. All these policies allowed profits to increase. Moreover, there were new marketing techniques, these persuaded people to buy more and more, as thay buy a lot there was a mass production, even more with the new production techniques and with the electrification in companies, these meaned that prices were cheaper. Besides, there was a mass production and consuption for the reasons that after the first world war USA was the world leader in the majority of the sectors all around the world.

As a conclusion, we can understand that credit and hire purchase caused more profit in poor families, the developed of firms, banks, the rise of social class for many people. All these things contributed to the economic growth. However, the republican policies, the mass marketing, mass consuption and mass production, the new techniques, the fact that USA controlled the world´s trade. all these contributed much more to the economic growth. In my opinion, credit and hire purchase contributed, nevertheless, there were many others things that were much more effective and contributed much more.