HST/165. Literature & Language Essay. Fundamentals of database systems

HST/165
Name
Institution
HST/165
The prosperity of the 1920s led to the emergence of a new consumption pattern that involved buying on credit to make goods more affordable to the average people within the society, especially in the US. Buying on credit involved purchasing a product immediately and paying at letter date. The method allowed companies to make large sales and profits and at the same time made the products more affordable even to the average and the low income earners in the society. Therefore, the assignment covers the story as presented by a new reported.
The issue of purchasing on credit started in the US after the citizens speculated that they would always have jobs in future even if they were not currently working. Hence, they would expect to settle off their debts overtime after obtaining a commodity (Rejda, 2015). Therefore, they started the habit of buying goods and services on credit where they did not pay for them immediately but settled the amounts due at a letter date. The method was considered convenient over money and several firms started adapting it as a method of improving their sales and gaining a competitive advantage over their rivals.
The use of the card improved the US economy at the time as several businesses and people started utilizing the new technology which was considered convenient over money. Specifically, the checks made the operations at the global market much easier as there was no need of face-to-face transactions that is achieved by the use of cash money. As a result, people started conducting long distance transactions which improved the US domestic consumption and market. The improvement in consumption and the creation of better markets led to job creation as more companies emerged that offered people employment. Therefore, the income per capita and the gross domestic product within the nation improved significantly.
Also, the use of credit cards brought cultural shifts of spending and trusts between the company and the consumers as well as the services that were offered. Companies trusted consumers that they will obey the promise of paying for the commodities at a letter date so long as they were convenient with paying certain charges as provided in the terms of the agreement. Additionally, the strategy improved the convenience of the services that consumers received as they would afford to get a commodity even if they did not have the money needed to settle them immediately. Therefore, the use of credit cards brought a significant shift in trust and spending that benefited both the firms that used the technology and their customers.
However, the use of credit cards has...