How Credit Cards Turned the American Dream Into a Global Consumer Culture

The “American Dream” has always been multifaceted, shifting over time and evolving into something more tangible and material: the promise of economic comfort, success, and a desirable lifestyle, replete with all the symbols of achievement. This idea existed well before the Second World War, but it was during the post-war period that it took its modern form, fueled by the influx of credit and the blossoming of the American suburb. Not only was buying synonymous with a prosperous life, but it was also presented as a patriotic duty. However, the American consumerism of the 1950s and 1960s was severely challenged by the counterculture movement of the 1960s, which questioned the very need for material wealth and its relation to happiness. In turn, this view was short-lived, eventually giving way to a more aesthetically pleasing, but ultimately similar, consumerist perspective that continues to hold sway in American society and has since crossed the ocean to influence the rest of the world.

While the American view of the ideal lifestyle and its’ close relation to consumerism has been largely accepted in the U.S., it has crossed the ocean to influence the rest of the world as well, with very few competing ideologies taking root on the other side. Not only did Western retail outlets flood the cities of the former socialist countries soon after the fall of the iron curtain, but the rhetoric of the Chinese Communist Party still echoes to this day, despite the country’s shift towards a more capitalistic approach. However, China’s approach to consumerism is not identical to the American one, despite the evident similarities. While the U.S. has long prided itself on being the home of credit cards and the ubiquitous American spending culture, China has largely bypassed the technology, innovating in the field of mobile payments instead. Alipay and WeChat Pay, two of China’s domestic “super apps”, are estimated to facilitate around 90% of all mobile payments in the country, with mobile payments accounting for 96% of all transactions made by Chinese adults and reaching a staggering 80 trillion dollars in total volume in 2024. Notably, foreign cards in China are largely used as a means to fund local accounts, with no payment option existing in competition with Alipay and WeChat Pay. Thus, while China embraced the consumerist ethos of the American Dream, it opted to build its own system on top of it, one that bypasses credit cards altogether and instead uses mobile payments as a means of funding everyday purchases. In turn, this presents an intriguing look at how the consumerist segment of the American Dream is exported to other countries, often with local modifications.

While the history of the credit card as an object of consumption is rather straightforward – it has existed since the 1950s and has only grown from there – its’ origin story is more interesting, being deeply intertwined with the consumerist culture that came to define the U.S. and was subsequently exported around the globe. It begins in 1950 and a failed dinner party, where New York businessman Frank McNamara forgot his wallet and, in consequence, had to found the Diners Club with his friend, which created the first ever credit card. These cards, however, were made of cardboard and only allowed the user to pay for their meal in full at one of the few establishments that accepted them. It was not until 1958 that the first revolving credit card was created, when the Bank of America launched the BankAmericard, which allowed the user to carry their balance over from one billing cycle to the next. Interestingly, the card’s launch was not particularly organic, as the bank proceeded to send out 60,000 credit cards to the residents of Fresno without a single application being requested. The company behind the BankAmericard would later come to be known as Visa, with Mastercard soon following after as a response to Visa’s entrance into the market. Thus, the credit card as we know it today was born, not from the organic consumerist need for one, but rather from a well-timed marketing push that created it out of thin air in the early 1950s.

Much of the discussion that follows from there, namely the credit card’s role in consumerist society and its’ status as a symbol of the American lifestyle, can largely be attributed to one man: sociologist George Ritzer. Best known for his work on McDonaldization, Ritzer published Expressing America: A Critique of the Global Credit Card Society in 1995, a work which largely focuses on the rise and cultural impact of the credit card. In it, he discusses how the credit card is the ultimate example of rationalization, with the entire system being based on a few simple principles that are applied to every transaction, removing human input and replacing it with a simple algorithm. In turn, Ritzer argues that the credit card is a tool that allows society to become more efficient, as the consumer is no longer required to think about the purchase they are making, only the convenience it affords them. As the card turns the consumer into a number, Ritzer predicts that the entire system would be replaced by a more rational and efficient system, with algorithms taking over a large part of the process that previously involved humans.

As previously stated, Ritzer’s work largely focuses on the credit card as a product of American consumerism. However, he also touches on the ways in which it interacts with other cultures, serving as a useful tool to examine the differences between Americanization and globalization. The former refers to the process of spreading American cultural elements around the world, while the latter speaks of the exchange of cultural elements between countries on a global scale. Essentially, Americanization is a subset of globalization, one that specifically deals with the influence of the U.S. on other cultures. As the credit card was largely a product of the U.S., its’ introduction to other countries serves as a useful example of how Americanization takes place in a globalized world. However, the process is not one-sided, as other cultures can exert their influence on American society as well. Ritzer’s view of the credit card and its’ status as a symbol of American consumerism is useful in examining the ways in which the U.S. interacts with the global economy, as well as the ways in which other countries modify the American product to fit their needs, as seen in the example of China and its mobile payments.

As a tool of consumption, the credit card allows the consumer to spend tomorrow’s money on today’s purchases. In turn, it removes human unpredictability from the process, replacing it with a simple algorithm that denies or approves the transaction based on a few simple metrics. As such, it serves as a useful insight into the way society works, with the card being a part of a much larger system. Not only does the credit card reflect the way people spend their money, it also demonstrates the way money itself works, with salaries, loans, and other financial instruments being placed on a global scale. The promise of the American Dream, one that is tied to material wealth and a desirable lifestyle, continues to shape societies around the world, with its’ influence being felt in the way people spend their money. While the methods of doing so, namely credit cards, may be different, the principle behind it remains the same: the consumerist promise of happiness.