By 1951, Diners' Club Card had 20,000 users (Karayew). Today, there are over 160 million credit card users in the U.S. ("Table 1188. Credit Cards-Holders"). The credit card affects consumers both positively and negatively (MacGregor 647).
Before After
 (Pile of Cash)
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*Cash was king
*Checks used more *Loans secured *Less debt *Lost/stolen cash gone *Less impulsive buying *Borrowing last resort *Borrowers low status *Live at income level *Pay now with cash |
 (O'Neil 50)
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*Move toward cashless
*Checks used less *Loans unsecured *More debt *Lost cards replaced *More impulsive buying *Easy money access *Cards status symbol *Live higher than income *Pay later with future money |
(Evans and Schmalensee 12; Geisst 13-23, 85-88; Manning 3-5, 104-106; Sullivan, Warren, and Westbrook 109-110)
Credit Card Use Increases Over Time (Evans and Schmalensee 88) |
"In the old days, banks dictated to the customer how they could use their credit cards. That has totally changed. It's now the customer demanding the banks to give them a product and a solution that meets their needs." ~Kevin Reilly, JP Morgan Chase Executive (Reilly) |
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"Many historians have described a shift from the pre-20th century culture of production - when many of the things that people used in their daily lives were homemade and handmade, ... to a culture of consumption."
~Susan Strasser, Historian/Professor (Strasser) |
(Mastercard Priceless)
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