What Caused The Great Depression
During the 1920’s, the great depression hit and so made a very uneven distribution of wealth, the top 1 percent of all americans had the riches of the bottom 42 percent of all americans. The uneven distribution caused factories to higher their prices, lower the employee's pay to try stay afloat but didn’t succeed. It wasn’t only factories though, mining, farming and textiles failed as well all leading up to the shutting down of thousands of banks.
During the period that lead to the great depression uneven distribution of wealth had began, when all the money that was being made was going into the pockets of those of the already wealthy, this resulted in the middle and lower-class american making less and less. The rich were booming with factory production and people were buying, until overproduction happened so the factories started to rise prices and then by the time they began to have overstock the need for the product and the ability for the people to buy it was no more. The prices of farm products fell a massive 40 percent making the life of the average …show more content…
The banks just like many others put all their money into investments in the stock exchange but when that all crashed it left them with no money to give to the rightful owners, this caused a massive five thousand banks to close and over nine million saving accounts destroyed without those nine million getting their money. The economy or lack thereof, led to people getting fired from their jobs or their job just completely shutting down resulting in the rate of unemployment to soar. There was said to be one million unemployed citizen in New York City alone and a disturbing fifty percent of the able bodied workers in the city of Cleveland were out of
During the period that lead to the great depression uneven distribution of wealth had began, when all the money that was being made was going into the pockets of those of the already wealthy, this resulted in the middle and lower-class american making less and less. The rich were booming with factory production and people were buying, until overproduction happened so the factories started to rise prices and then by the time they began to have overstock the need for the product and the ability for the people to buy it was no more. The prices of farm products fell a massive 40 percent making the life of the average …show more content…
The banks just like many others put all their money into investments in the stock exchange but when that all crashed it left them with no money to give to the rightful owners, this caused a massive five thousand banks to close and over nine million saving accounts destroyed without those nine million getting their money. The economy or lack thereof, led to people getting fired from their jobs or their job just completely shutting down resulting in the rate of unemployment to soar. There was said to be one million unemployed citizen in New York City alone and a disturbing fifty percent of the able bodied workers in the city of Cleveland were out of