causes of the great depression Essay -- essays research papers

The Great Depression was a decade of poverty for many coupled States citizens. Starting in 1929, The Great Depression was a rough condemnation not only for the U.S. barely for many other countries. There are many causes for the Depression but the main cause was the combination of the greatly un commensurate distribution of wealth throughout the 1920s and the extensive stock market place speculation(Gusmorino, 1). Other causes were the unsteadiness of the stock market, short signed economic policies, overdependence on mass production, consumer spending, advertising, welfare capitalism, and high tariff. The effect on the country of the mental unsoundness in the economy threw the U.S. into an era of negativity. How did the United States go from the roaring mid-twenties to The Great Depression? It was all based on deflation and the crash of the economy. A good example of uneven distribution of wealth was Henry traverses yearly income of $14 billion the same year that the add up 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, total demand must equal total supply. What happened in the 1920s was an oversupply of goods. This resulted in the middle-class needing more but not being able to afford more while the u didnt want to buy more goods. Three quarters of the U.S. cosmos spent almost all of their yearly incomes to purchase consum...