If people couldn’t buy cars and refrigerators — to say nothing of houses — on credit, the markets for these goods would be vanishingly small. Americans had traditionally been averse to debt, whether personal or governmental. They thought like producers, for whom debt is sometimes necessary but always a cost. Thrift mattered, and for many Americans it was a point of pride not to buy on credit; if you didn’t have the cash for something, you waited.
That kind of attitude wouldn’t keep the car factories humming. The blue social model involved an unprecedented expansion in the use of credit by private households, large companies and all levels of government. Debt was the mother’s milk of blue prosperity and John Maynard Keynes was the prophet of the blue age.