(The Brewing Industry) Railroads are gaining profit because alcohol producing companies are paying them to distribute their product to stores. Telegraph companies are benefiting due to different companies interacting and negotiating with each other. Lastly, mechanical refrigeration units are not cheap, so if alcohol companies are buying the units, the makers of the refrigeration units are making huge profits. This complex flow of money helps the economy run smoothly. On the other hand, the prohibition of alcohol had a very negative affect on the economy.
Common knowledge here, but during the great depression it was Theodore Roosevelt who brought America out of the great depression. He as president and his chamber of people created plenty of jobs to fuel the economy again. Therefore, government should be able to step in and stop inflation on food and oil, because if they don’t than businesses will take advantage of the people. Since businesses know that people will have to buy food and oil as a necessity to live and survive on, people will have to buy it at any cost. This means more profit for businesses because the rise on food and oil means more money in their wallet but less money in consumers’ wallets, “Similarly, when homeowners benefit from inflation because the price of their homes rises, while renters suffer because they are paying higher rent” (ch.8 p. 15).
This law increased custom duties by nearly 50% on imports of more than 20,000 types of goods. Many countries, as a retaliatory measure, also increased their import taxes. As a result, world trade fell sharply, which contributed to exacerbating the Great Depression. With overproduction still occurring, this international standstill only made to intensify the already critical situation. The tariff also increased living costs, limit exports and hurt investors as the high tariffs would make it harder for debtors to pay off loans, continuing to weaken banks.
The new consumer culture is what led to 16.5 million shares being sold in one day, which was detrimental to the stock market as it caused the crash on October 29, 1929. Many lost a great deal of money, marking the start of the Great Depression. The excessive consumer culture also led to a vast majority of prosperity going towards the industrial economy instead of the
The gilded age is the time in which the U.S. population and economy grew quickly, there were a lot of very wealthy people living very fancy lives. The Great Depletion was a very traumatic time in the U.S. because the stock market crashed and everyone wanted their money but the bank did not have it and then the whole economy went down and most people lived very unfortunate lives.
A different issue that affected inequality in the economy was that people with power often would pay themselves large salaries over their employees. The new tax reform was also in favor of the rich because it helped reduced their taxes which did little good for the average American. In 1993 the tax code changed several inequities that were in the government tax structure in the 1980s. The rise in minimum wage improved the quality of living for the people who received a very low wage for working. This caused a decrease in inequality pay but not for income.
At the same time, the problem of unemployment also existed. Actually, unemployment remained high in the twenties. Although the government had policies to take income tax in order to balance the income between the rich and the poor, the actual income of the big companies were much more than what they pay for tax. The effort made by government did not help workers effectively. After the Great Depression, the New Deal programs benefited people who suffered from inequality a lot.
The Great Depression of the 1930’s was triggered by big businessmen and their corporations. This resulted in growing anger and anxiety towards the dynastic rich. President Theodore Roosevelt attacked the wealthy by imposing regulations on companies and attempting to reform the rich. Another attack was Easy Living, a 1937 film, where comedy was used to make fun of the dynastic rich and big business. While both were obvious jabs at the rich, Theodore Roosevelt’s attacks were more blatant and direct whereas Easy Living is a lighthearted comedy that made the viewer feel sympathetic towards the Ball family.
By getting a better and more expand education, people can prepare themselves for better job opportunities and political interest. Raising minimum wage would be the ideal fix to economical inequality because it would index to the inflation; the cost of living would be affordable. The wealthy should get taxed more and get less tax breaks than the low-income families. By correcting political imbalanced, the lower class would be able to get their opinions heard and also get job security to protect the workers’. The Occupy Wall Street is a movement against social and economic inequality that has spoken up and fought for the people in the lower class.
Economic problems came to trigger the depression too, involving banks and our economy. The Stock Market Crash of 1929 was not so much a cause of the Great depression, but the event that kicked it off. The Great Depression started with the Stock Market crash of 1929, and was caused by many problems politically, economically, and socially. The social trends and attitudes of the late 1920s led to two important problems that turned out to be a major cause of the Great Depression. Over Speculation was a big problem because of people 's social attitudes of the time.
Second, Reagan cut taxes for corporations and the wealthy-class. The theory of Reaganomics is tax relief for the rich would enable them to spend more money, save money in banks, and make investments. The additional spending from the rich, was supposed to help stimulate the economy and create new jobs. However, the opposite occurred and America suffered a deep recession in 1981-1982. In addition, the high interest rates caused the value of the dollar to rise on the international exchange market, thus American exports decreased and imports increased.
British sociologist Herbert Spencer adds some social Darwinism by arguing that “free market economies constitute the most civilized form of human competition in which the ‘fittest’ will naturally rise to the top”. This school of thinking believes that inequality is needed to create incentives to drive the performance of companies and individuals. An important element of this trickle down effect involves income tax cuts for the rich. It is argued that cutting income tax for the rich will benefit everyone, not just high income-earners. The trickle down effect explains that if that if higher-income earners get an increase in disposable income, they will thus increase their spending, creating additional demand in the economy.
Were Americans more greedy during the 1980s? The top 1% began to control almost 50% of the US household wealth because of the Reagan tax cuts for the rich and greed. Wall Street business shifted towards more money motivated actions and get rich quick investments. Corporations were more interested in acquiring more assets and smaller companies to gain immediate financial success, instead of investing companies and researching for the future (West, 1994). Greed could certainly account for this new technique utilized in the business world.
If we do increase taxes on the rich, how will we define them? Some of you will be considered rich because of your college funds in the bank. And you will lose half of it. In addition if we tax the rich, the nation’s economy will crash. But you do not have to lose half your college fund, or ruin America.
Saying that all Americans prospered in the 1920’s is quite a general statement, as it is true that many American 's did benefit from the economic boom, and were able to have a higher standard of living, however this was only possible with an urban lifestyle, with large industries and businesses where people could afford to buy shares and stocks, and create a greater demand for consumer goods, leading to a rise in company share values, and the tax cuts brought more wealth in the company so some people, for example Henry Ford 's workers, found their wages increase. Despite this advancement many Americans did not benefit from the boom for examples farmers ended up going bankrupt, and jobs were replaced by more efficient machines, so the