Louis Hyman’s, Debtor Nation: The History of America in Red Ink, goes back in time to post-war America just after World War I to give a historical timeline of how America’s credit system evolved over time. Hyman gives a very detailed account of the events since the early 1900’s till today of how the credit system changed into a profitable business.
Hyman answers the question of how America’s credit system became profitable. He explains that from the beginning even the “petty loans to workers had become one of American capitalism’s most significant products”. The history of loans and credit dates back in time, however, these were normally personal loans or stores that provided credit to local customers. One of the very first loan shops started out in the back of a shop in the late 1800’s and eventually “became, by the 1920’s, the most widespread small loan company in the United States, the Household Finance Company”. At this time, however, there were no policies governing the dealings with these “loan sharks” and usurious rates were charged because of the risk involved in loaning money. Many people struggled during the post-war era and needed money just to survive, but had no alternatives. Hyman explains that …show more content…
However, they overcame these obstacles and were able to secure credit on their own. Americans would eventually, go from wanting credit to needing credit. Nowadays, if you don’t have credit then you will have a difficult time getting a home or car. We are now automatically given a credit score by which we are accountable for and should strive to keep in good standing. If you have bad credit or no credit history, then you will have a hard time getting a car, house, loans or other good things in life. Today, it is almost impossible for Americans to live without being in debt. It seems as though it is