The place to go get rich they called it. Wall Street had the biggest boom in the 1920s, which was influenced by the United States successful venture of World War One. This prosperity seemed to have no end but on October 29, 1929 (now known as black Tuesday) the American Stock Market crashed. This thus plunged the United States into the deepest economic depression the world had yet to witness. This depression began due to the stock market crash but other reasons such as the massive income inequality and the new American system of instalment buying set the course with ultimately lead the United States to The Great Depression. In the 1920s the American wealth exploded. It brought forward an increase of millionaires by 400% but this in turn buried the already poor Americans into a deeper hole of poverty. The difference in income between the wealthy class, the middle class and the poor class was absolutely massive. In total 60% of all Americans lived at or below the poverty line of $2,000. This left 32% of Americans living at the average income line of $2,000-$5,000 and the final 8% lived at the wealthy or above average line of over $5,000 (Doc 9). Although the United States had accumulated a substantial …show more content…
This adversity was soon overcome by the rise of a new system in America by name of Instalment Buying. This system allowed people to buy products that they would normally be unable to buy. Banks would buy products for people on the condition that the people would pay the bank back in payments over a course of time (Doc 6). This system was the the second cause of The Great Depression after income inequality because if people became unable to pay the bank its loans back, millions of dollars would simply disappear. That was exactly what happened on October 29, 1929 (Doc
After the end of World War I the Untied States entered a period of the Roaring Twenties. During the Roaring Twenties, production was high, spending was high, and the Stock market increased by over four hundred percent. By 1929, stocks were overpriced, factories were overproducing goods, and bad credit all climaxed with the collapse of the American economy. By the time the United States realized what was wrong the economy was plunging with no end in sight. In an attempt to prevent the collapse JP Morgan invested one hundred million dollars into the stock market to try and calm people and prevent selling.
Economically, the New Deal assisted the United States by providing jobs. Many Americans were poor during the Great Depression (Document 1). These individuals lived in Hoovervilles, or shantytowns, and struggled to find fresh produce. Due to a lack of income, most of these individuals had to eat food thrown out by greengrocers. However, these circumstances were even worse for individuals who farmed (Document 6).
People were desperate for a change during The Great Depression. Franklin Roosevelt, remembered as the one who successfully guided the nation through the Great Depression and World War Two, was able to pass a deal that would help the nation drastically. This deal became known as the New Deal. The components of the New Deal changed millions of lives for Americans struggling through the Great Depression, however, many people were still opposed to FDR’s program.
Many people have different views and stories on how they believe that the great depression began. Some think that it was the result of workers going on strike, so they were then in turn replaced with machinery (Document 4), others thought that it was the fault of the bankers and the loans that were given out. While others went in the direction of blaming people who drifted from church or capitalism’s greed. Franklin Roosevelt's responses to the problems of the Great Depression was effective, but it had its downfalls. In Franklin Roosevelt's first one hundred days of being in office, he created plans for restructuring the economy.
In 1929, the stock market crashed, bringing economic devastation to all of America, and much of Europe. Many Americans were jobless and homeless, causing many problems all throughout America. The American citizens and people frantically tried to create coping methods fro life in poverty, and did what they had to survive, as our government was working to improve life for the American citizen. These fateful years would later be known as, “The Great Depression”, the greatest economic crisis in American History.
The Great Depression was a period of immense suffering, in which the worst economic downturn in history was recorded. The unemployment rate was at an all time high, the dust bowl swept across the great plains and America was plain out downtrodden. The Great depression occurred in 1929, a year after president Herbert Hoover was elected. Hoover a conservative, was elected over Al Smith during a prosperous America, but little he did he no the great nation was about to head southward into poverty. Hoover embodied many ideals, which further postponed the collapse of the great depression, these ideals were voluntary cooperation, rugged individualism, and the natural cycles of economy.
President Franklin D. Roosevelt's New Deal, a series of economic and social reforms enacted to combat the Great Depression, was met with both support and opposition. While some Americans supported the New Deal as a means of providing relief and recovery, others opposed it for various reasons. Critics of the new deal claimed that it expanded the federal government's role, was harmful to the economy, and was too closely associated with communism. The New Deal, a series of policies implemented by President Franklin D. Roosevelt in response to the Great Depression, was met with both support and opposition.
World War and economic depression brought about numerous social movements in the United States. As expected, these movements lead to the passing of various pieces of legislation. However, the legislations seemed to draw from ideals not specific to one set of American ideals, making them incredibly complex. This was mostly the case during the during Franklin Delano Roosevelt’s presidency where the progressives and the New Deal were well on their way to creating a liberal America. This made them immediate enemies of anyone who believed in the old ways of America.
The economy of the United States expanded greatly through the 1920 's reaching its climax in August 1929. By this point, production had already declined and unemployment was at an all-time high, leaving stocks to imitate their real value. During the stock market crash of 1929, better known as Black Tuesday, investors traded vast numbers of shares in a single day, causing billions of dollars to be lost and millions of investors to be eliminated. This "crash" signaled the beginning of a decade long Great Depression that would affect all Western industrialized nations; a crash that would later become known as one of the darkest, longest lasting, economic downturns in American history. People all around the world suffered greatly as personal income,
Now how does this family income connect with income distribution? The money given out to families is like a widespread poverty in America that hurts big business. If only the rich people buy and the poor don’t buy they can lose their jobs cannot afford the luxuries then there isn’t money to make a profit. Which leads companies lay off workers and the laid off workers don’t have a job now They can’t buy from companies so then companies cannot make a profit. According to document 9 with the article, the poverty line for the average American family in 1929 was 1,500-2,000 dollars.
In 1929, the United States stock prices dropped drastically, leaving farmers without farms, banks out of business, and businesses bankrupt. This was the start of the Great Depression. The Great Depression affected the whole country, leaving many unemployed and impoverished. The Depression lasted for a whole decade. In 1932, Franklin D. Roosevelt was elected President of the United States.
The wealth during the 1920s left Americans unprepared for the economic depression they would face in the 1930s. The Great Depression occurred because of overproduction by farmers and factories, consumption of goods decreased, uneven distribution of wealth, and overexpansion of credit. Hoover was president when the depression first began, and he maintained the government’s laissez-faire attitude in the economy. However, after the election of FDR in 1932, his many alphabet soup programs in his first one hundred days in office addressed the nation’s need for change.
America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.
Wealth and Inequality in America Inequality The inequality in America has increased over time; the gap between the rich and the poor has become a problem that many Americans don’t see. Inequality is the extent of income which is distributed unequally among the citizenry. The inequality of the United has a large gap between the poor and the rich making it unfair to the population, the rich are becoming wealthier and the poor remain poor. The article “Of the 1%, By the 1%, For the 1%”, authored by Joseph E. Stiglitz describes that there is a 1 percent amount of American’s who are consuming about a quarter of the United States income in a year.
During the Great Depression many people lived in poverty, more than 20% of the people were unemployed, but President Roosevelt implemented programs to help Americans prosper. The Great Depression is when the America’s economy had fallen to its lowest point. Many people lost their money and it’s when poverty hit rock bottom. The New Deal was necessary because even though it didn 't end the Great Depression it helped lowered unemployment, secure their money, and helped the economy prosper. In its attempt to end the Great Depression, the New Deal had many successes and failures