Credit was a new invention in 1929; John Raskob (General Motors) and Charles Mitchell (National City) pioneered lending for cars and stocks, respectively, which shifted the American public's willingness to take on debt.

“While consumer credit existed before the 1920s, its widespread use and social acceptance for mass-market goods was a new phenomenon of that decade. Historical sources confirm John J. Raskob of General Motors pioneered consumer auto loans by creating the General Motors Acceptance Corporation (GMAC) in 1919. Similarly, Charles E. Mitchell of National City Bank (now Citibank) was a key figure in popularizing buying stocks on margin, aggressively marketing securities and extending credit to small investors, which fueled market speculation. The claim is slightly inaccurate in calling credit a "new invention," as installment buying existed earlier, but it correctly identifies the key figures and the transformative shift in consumer behavior they led. Context: Basic forms of credit, like running a tab at a local store or installment plans for items like sewing machines, existed in the 19th century. The 1920s, however, marked a significant cultural and economic shift where borrowing for consumer goods and investments became a widespread and accepted part of middle-class American life, not just a tool for businesses or a sign of desperation.”