Before the 1920s consumer credit was considered okay for housing or for 
"moral" consumption such as pianos or encyclopedias.  Stores would give 
credit on the books people they knew.  I could go to the nearby grocery 
store, pick up some things for my mother, and clerk would merely note down 
the price.  The automobile industry first popularized massive credit in the 
1920s.


On Wed, Jul 16, 2008 at 12:58:31PM -0400, Doug Henwood wrote:
>
> On Jul 16, 2008, at 12:23 PM, Gernot Koehler quoted:
>
>> And so the financial system has begun to target the personal income of 
>> private individuals - workers and broader strata of the population - as a 
>> source of profit.
>> This is a new departure in capitalism.
>
> New? It's growing, for sure, but mortgage lending and consumer credit are 
> very old in the U.S. Less old elsewhere, but we're still talking decades.
>
> And if you want to go back, there's the company store.
>
> Doug
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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