During the 1920s, installment buying allowed consumers to purchase goods on credit, leading to increased consumer spending and a false sense of economic prosperity. However, this practice also masked underlying income inequality, as many Americans struggled to keep up with payments. Simultaneously, rampant Stock Market speculation fueled by easy access to credit created an unsustainable financial bubble. Together, these factors contributed to the economic instability that ultimately led to the Great Depression in 1929.
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