What economic factor contributed to the consumer spending during the 1920s economic boom?

The economic factor that significantly contributed to consumer spending during the 1920s economic boom was installment purchasing. This method allowed consumers to buy goods on credit and pay for them over time, making large purchases more accessible to a broader segment of the population. Before installment plans, consumers often needed to pay the full price upfront, which limited their ability to spend.

As a result of installment purchasing, people could buy items such as automobiles, household appliances, and other consumer goods that were previously considered luxury items. This surge in consumer credit not only boosted individual purchasing power but also stimulated production and sales across various industries, contributing to the overall economic prosperity of the decade. The rise of advertising and the growing culture of consumerism further fueled this trend, leading to an unprecedented level of spending that defined the roaring twenties.