A simple way to explain the situation of the Great Depression is dismal.  Entire families were uprooted from the solid foundations that they created several years before.  This was a time of immeasurable economic instability, and as many of us have read, the depression started with the atrocious crash of the stock market in 1929.  It is true that the crash was the fire starter for this grave situation, but our countries economy troubles started to crumble throughout the twenties.  The whole situation caused many problems for society such as poverty, hunger, and many questions about our great countries economic foundation.  The Great Depression was not only caused by the crash of the stock market, but by expensive tariffs on imported products, surpluses in production and farming, unequally distribution of funds, a laissez-faire attitude by the government, and a panic over the financial situation.

        The unequal distribution of wealth throughout America was the single largest cause of the depression of 1930’s.  From the beginning of the twenties, the total income of the U.S. jumped from $74 billion dollars in 1922, to an astonishing $89 billion dollars in 1929.  On paper this jump looked good, but the gains were so unevenly distributed.  Unbelievably, the bottom 40% of American’s income was equal to that of the top 0.1% of American’s income showing that the gap between the wealthy and the poor was insurmountable.  Also, the minute 0.1% of Americans possessed 35% of the nation total savings while almost a third of the country had no savings at all.  Disposable income was on a hefty rise from 1922-1929, but an already healthy higher class swallowed up the surplus.  Even with incomes rising most families had to spend entire annual incomes on the necessities such as food, water, and other consumer goods.  Now, the top 25% of Americans owned more than half of our nation’s income.  The United States growth came from the working class American putting in hours on the assembly lines, creating gains for the rich.  While production rose by 30%, workers only gained an extra 6% on their own income.  Profits for businesses increased by a whopping 67% and, yet, the U.S. government let these huge gains go almost exclusively to the already rich.  Overall, the working was going to stay a working for the rich populations profit (Smith).

        Not only was money unequally distributed, but also tax laws helped rich folks keep their money.  Basically, the rich stayed rich and the poor got poorer.  This happened because income taxes were lowered for the wealthy class and gift taxes, along with inheritances, were protested.  America started to become dependent on the wealthy population making expensive purchases instead of proportional price level purchases.  The buying power of the lower and middle class dollar lowered creating a larger gap between the opposite classes (Joseph).

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        Noticing the decrease in buying by the lower classes, the government set up a new way to buy essential goods.  Their idea was to make it possible for Americans to buy cars, stocks and other major purchases without paying for them right away.  This idea was credit and Americans took advantage of it by purchasing $1.4 billion dollars worth of consumer items in 1925.  In a short four year span, the debt owed by Americans was almost $3 billion dollars.  People were even allowed to buy stocks on credit.  This allowed society to purchase large amounts of stocks and make ...

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