causes of the great depression Essay -- essays research papers

The Great economic crisis was a ten-spot of poverty for many a(prenominal) get together States citizens. Starting in 1929, The Great Depression was a rough time not only for the U.S. but for many other countries. There are many causes for the Depression but the important cause was the combination of the greatly unequal dissemination of wealth throughout the 1920s and the extensive stock market speculation(Gusmorino, 1). Other causes were the unsteadiness of the stock market, concise signed economic policies, overdependence on mass production, consumer spending, advertising, welfare capitalism, and high tariff. The core group on the country of the imbalance in the economy threw the U.S. into an era of negativity. How did the United States go from the roaring twenties to The Great Depression? It was all establish on deflation and the crash of the economy. A good example of uneven dissemination of wealth was Henry Fords per annum income of $14 billion the same year that the average income was $750. Another contributor to the uneven distribution was the government. Calvin Coolidge favored businesses therefore favoring the wealthy who invested in these businesses. For an economy to function properly, contribute demand must equal total supply. What happened in the 1920s was an oversupply of goods. This resulted in the middle-class needing much but not being able to grant more while the upper-class didnt want to buy more goods. Three quarters of the U.S. population spent almost all of their yearly incomes to purchase consum...