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This system of buying goods became very common during the first half of the twentieth century. Today a large proportion of all the families in Great Britain buy furniture, household goods and cars by hire-purchase. In the USA, the proportion is much higher than in Great Britain, and people there spent over 10 percent of income on hire-purchase installments. The goods bought by hire-purchase are, in almost every case, goods that will last: radio and television sets, washing-machines, refrigerators, motor-cars and motorcycles and articles of furniture. The price of an article bought in this way is always higher than the price that would be paid for cash. There is a charge of interest. The buyer pays a proportion, perhaps one quarter or one-third of the price when the goods are delivered to him. He then makes regular payment, weekly or monthly, until the full price has been paid. Hire-purchase has advantages and disadvantages. It helps newly-married couples with small incomes to furnish their homes. It increases the demand for goods and, in this way, helps trade and employment. If families are paying each month installments on such household goods as a washer and a car, they can spend less money (or perhaps no money) uselessly on too many alcoholic drinks.

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1. Many people think the biosphere as inhabitable region will cease to exist comparatively soon.

2. Early in the 20 century very few people contemplated the risks industrial growth may cause.


3. Keynes believed the unemployed should be put to work and incomes should be redistributed so the poor could have money to spend.