Paper 4: USA essay writting

The paper 4 in the I.G.C.S.E. exam asks you to write an essay on to a depth study that in this case is U.S.A. this essay had to be based in the following question:

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

In the 1920´s U.S.A. had a very important growth in economic, two reasons of improve were credit(a way of buyingsomething in wich you arrange to pay for it at a later time and hire purchase a method of paying for something in wich you pay part of the money owed immediately and the rest in small regular amounts until the whole amount is paid, the two of them take a big role in the improvements of the U.S.A. country.

On the one hand, in this time the banks and the people had confidence between each other so this led the people to ask for credits and hire purchases in the bank and the banks with the confidence gives the money to everyone that ask for them. This bring some changes, one of them is that the people with low income of money can buy the new manufactured goods also the new inventions of the time like the radio and the other change was that in the U.S.A. there were many new millonaires from investments based on borrowing money that consists on buying things and selling them immediately when the prices had rices.

On the other hand, people started to speculate in the buying of things so they started to buy shares of companies and invest many in them. In addition, the hire purchase appear more in the industries such as the motor industries. In this period the U.S.A. economy growth really fast, in fact the U.S.A. lent money to all thei allies and also sold of  munitions and arms to Great Britain.

As a conclusion, we can say that the credits and hire purchases were beneficial for the country, however people used them a lot and they speculated too much so this brings problem to the U.S.A. country.