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How important was the distribution of wealth towards the economic problems in the 1920's USA.

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Introduction

How important was the distribution of wealth towards the economic problems in the 1920's USA The distribution of wealth was, I believe, the main factor in the economic problems of the USA. However it wasn't the only factor there were others such as: - Agriculture, trade and the government. The term 'distribution of wealth' means something that is owned by a person that has a cash value such as an automobile or a refrigerator. It is also bought at a specific point in time and is therefore different to income as that is over a measured period of time. Wealth varies in many different areas and for many different purposes such as savings, education or inheritance. The distribution of wealth was fairly uneven across the USA, as everyone seemed to be buying consumer goods i.e. ...read more.

Middle

There was a substantial growth in production, profits, job wages and the standard of living. These elements worked in a cycle of cause and effect and supply and demand. The growth in production created more jobs, and because more people had more money they could buy the newly produced goods. More goods needed to be produced so more jobs and profits were created. This led to the twenties seeing the start of mass production and consumerism. For the first time items like cars and refrigerators were available and affordable to the middles classes and this meant secondary industries such as advertising became very profitable. People spent money as quickly as it was gained. The motor industry was greatly benefited by the Boom as the amount of car sales, and so cars on the roads rose. ...read more.

Conclusion

Segregation and racial prejudice meant that they were forced into the most badly paid jobs and given the worst education. During the boom there was a cycle of people having more money to spend, and businesses making more profits and more jobs, and also secondary and tertiary industries starting, creating a more affluent society. Many however did not share in this affluence, and there were also still underlying problems with the economy. Items like fridges and radios could only be bought once and demand soon died down. The Boom was soon to come to a remarkable and abrupt end with the Wall Street Crash. I conclude that the distribution of wealth was a very important factor in the economic problems of the USA in the late 1920's and early 1930's, But was influenced mainly by people living in urban areas who were poor and rural areas who were rich. Joe Turner 10 Town ...read more.

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