Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
Causes Of The Great Depression - School Essays

Causes Of The Great Depression



The Great Depression was the worst economic slump ever in U.S. history, and one that spread to virtually the entire 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 throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade. The maldistribution of wealth in the 1920's existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

the rewards of the "Coolidge Prosperity" of the 1920's 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%. That same top 0.1% of Americans in 1929 controlled 34% of all savings, while 80% of Americans had no savings at all. 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 in the same year that the average personal income was $750. 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 1920's. 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 ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.


Already a member? Login

was able to lower federal taxes such that a man with a million-dollar annual income had his federal taxes reduced from $600,000 to $200,000(end note 12). Even the Supreme Court played a role in expanding the gap between the socioeconomic classes. In the 1923 case Adkins v. Children's Hospital, the Supreme Court ruled minimum-wage legislation unconstitutional(end note 13).

The large and growing disparity of wealth between the well-to-do and the middle-income citizens made the U.S. economy unstable. For an economy to function properly, total demand must equal total supply. In an economy with such disparate distribution of income it is not assured that demand will always equal supply. ...

Succeed in your coursework without stepping into a library.
Get access to a growing library of notes, book reports,
and research papers in 2 minutes or less.


CITE THIS PAGE:

Causes Of The Great Depression. (2007, December 1). Retrieved June 21, 2024, from http://www.essayworld.com/essays/Causes-Of-The-Great-Depression/75153
"Causes Of The Great Depression." Essayworld.com. Essayworld.com, 1 Dec. 2007. Web. 21 Jun. 2024. <http://www.essayworld.com/essays/Causes-Of-The-Great-Depression/75153>
"Causes Of The Great Depression." Essayworld.com. December 1, 2007. Accessed June 21, 2024. http://www.essayworld.com/essays/Causes-Of-The-Great-Depression/75153.
"Causes Of The Great Depression." Essayworld.com. December 1, 2007. Accessed June 21, 2024. http://www.essayworld.com/essays/Causes-Of-The-Great-Depression/75153.
JOIN NOW
Join today and get instant access to this and 50,000+ other essays


PAPER DETAILS
Added: 12/1/2007 03:53:28 AM
Category: American History
Type: Free Paper
Words: 3512
Pages: 13

Save | Report

SHARE THIS PAPER

SAVED ESSAYS
Save and find your favorite essays easier

SIMILAR ESSAYS
Causes Of The Great Depression
The Cause of the Great Depressi...
Causes Of The Great Depression
Causes Of The Great Depression
The Great Depression: What real...
Causes Of The Great Depression
The Great Depression
The Great Depression
The Great Depression
Developments Of The Modern Day
Copyright | Cancel | Contact Us

Copyright © 2024 Essayworld. All rights reserved