Main Causes of The Great Depression :: history

Main Causes of The Great DepressionThe Great Depression was the worst economic slump eer in U.S. history, and genius which spread to virtually all of the industrialized world. The depression began in late 1929 and lasted for about a decade. Many factors played a determination in convey about the depression however, the main cause for the Great Depression was the combination of the greatly unequal distri thoion of wealth throughout the 1920s, and the spacious stock merchandise speculation that took place during the latter part that same decade. The mal diffusion of wealth in the 1920s existed on many levels. Money was distributed disparately mingled with the rich and the middle-class, between industry and gardening within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920s kept the stock marketplace artificially high, but eventually lead to large market crashes. These market cras hes, combined with the maldistribution of wealth, caused the American economy to capsize. The roaring twenties was an era when our country prospered tremendously. The nations sum total realized income move from $74.3 billion in 1923 to $89 billion in 1929(end note 1). However, the rewards of the Coolidge Prosperity of the 1920s were not shared evenly among all Americans. According to a study through by the Brookings Institute, in 1929 the top 0.1% of Americans had a combined income equal to the bottom 42%(end note 2). That same top 0.1% of Americans in 1929 controlled 34% of all savings, term 80% of Americans had no savings at all(end note 3). Automotive industry mogul Henry Ford provides a striking font of the unequal distribution of wealth between the rich and the middle-class. Henry Ford reported a individualised income of $14 million(end note 4) in the same division that the average personal income was $750(end note 5). By present day standards, where the average twelvemo nthly income in the U.S. is around $18,500(end note 6), Mr. Ford would be earning over $345 million a year This maldistribution of income between the rich and the middle class grew throughout the 1920s. While the disposable income per capita rose 9% from 1920 to 1929, those with income within the top 1% enjoyed a stupendous 75% increase in per capita disposable income(end note 7). A major reason for this large and growing gap between the rich and the blue-collar people was the increase manufacturing output throughout this period.Main Causes of The Great Depression historyMain Causes of The Great DepressionThe Great Depression was the worst economic slump ever in U.S. history, and one which spread to virtually all of the industrialized world. The depression began in late 1929 and lasted for about a decade. Many factors played a role in bringing about the depression however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth t hroughout the 1920s, and the extensive stock market speculation that took place during the latter part that same decade. The maldistribution of wealth in the 1920s existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920s kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the maldistribution of wealth, caused the American economy to capsize. The roaring twenties was an era when our country prospered tremendously. The nations total realized income rose from $74.3 billion in 1923 to $89 billion in 1929(end note 1). However, the rewards of the Coolidge Prosperity of the 1920s were not shared evenly among all Americans. According to a study done by the Brookings Institute, in 1929 the top 0.1 % of Americans had a combined income equal to the bottom 42%(end note 2). That same top 0.1% of Americans in 1929 controlled 34% of all savings, while 80% of Americans had no savings at all(end note 3). Automotive industry mogul Henry Ford provides a striking example of the unequal distribution of wealth between the rich and the middle-class. Henry Ford reported a personal income of $14 million(end note 4) in the same year that the average personal income was $750(end note 5). By present day standards, where the average yearly income in the U.S. is around $18,500(end note 6), Mr. Ford would be earning over $345 million a year This maldistribution of income between the rich and the middle class grew throughout the 1920s. While the disposable income per capita rose 9% from 1920 to 1929, those with income within the top 1% enjoyed a stupendous 75% increase in per capita disposable income(end note 7). A major reason for this large and growing gap between the rich and the working-class p eople was the increased manufacturing output throughout this period.