Causes of the Great Depression

Causes of the Great Depression In 1929 the nisus foodstuff crashed, triggering the worst belief ever in U.S. history, which lasted for about a decade. During the 1920s, the unequal statistical diffusion of wealth and the stock market place speculation combined to fashion an unstable economy by the end of the decade. The unequal distribution of the wealth had several outlets. Money was distributed between industry and market-gardening within the U.S.; in social classes, between the rich and set class; and lastly in world markets, between the States and Europe. Due to the imbalance of the wealth, the economy became very unstable. The stock market crashed because of the excessive speculation in the 1920s, which made the stock market artificially high (Galbraith 175). The poor distribution of the wealth, excessive speculation, and the stock market crashes caused the U.S. economy to fail, signaling the start of the Great Depression. The 1920s were a duration when the American people and the economy were thriving. This period of time was called the Roaring Twenties. Unemployment dropped as low as 3 share, prices held steady, and the gross national product climbed from $70 billion in 1922 to nearly $100 billion in1929 (EV 525).

However, the prosperity of the 1920s was not divided up evenly among the social classes in America. A study conducted by the Brookings Institution stated, 78 percent of all American families had incomes of little than $3,000. Forty percent had family incomes of less than $1,500. Only 2.3 percent of the macrocosm enjoyed incomes of over $10,000. Sixty thousand American families held savings which amounted to the totality held by the bottom 25 million families. (Goldston 26). The 40 percent of Americans at the lowest end of the economic scale accredited only 12 percent of the national income by 1929 (EV 549). This maldistribution of income between the rich and the middle class increased throughout the 1920s. A major reason for this large and growing... If you want to get a full essay, order it on our website: Orderessay

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