The great depression is almost mythical to many younger people growing up in America today. Every child has heard stories from a grandparent or read about the depression in a book. However, not many people known the true cause of the depression and how the depression was not limited to the United States. The great depression of occurred because of three main reasons and left the country trying to recover for the next decade. .
The first major cause of the depression was an unequal distribution of wealth among the American citizens. A mere .1 percent of Americans held a whopping 42 percent of the nations wealth. An illustration would be if there were only 1,000 people left in the world and there was only 1000 dollars left but money was the key mean of survival, one person would hold 42 percent of the money. In the example, the one person would have $ 420 while the rest of the people would have an average of .58 cents to live off. With the uneven amount of money around, the average American family earned $750 dollars. At the same time, Henry Ford made fourteen million dollars. If that is compared to today's standards, the average family makes 18,500 dollars. If Ford's personal revenue would have grown at the same pace, he would make over 345 million dollars a year, today. To further add to the wealth problem, Americans did not save any of their money they did possess. An astonishing 80 percent of Americans didn't save their money. .
Because Americans didn't save their money they ran into the second cause for the great depression: debt. The debt was caused by a large amount of overproduction of food and goods. Americans were able to produce large amounts of goods because of their new industrial advances. However, the people had saved no money to buy these items. Americans couldn't afford the goods produced which lead to massive storage problems and no revenue for people selling the goods. Because American couldn't buy the goods on their own, they bought items on credit.
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The Great Depression The Great Depression was one of the longest depressions in the history of North America left Americans shaken. ... My grandmother, a survivor from the great depression says "we had to gather food from were ever we could find it, we were starving". ... The Great Depression sent people that were ordinarily comfortable with life scurrying for reassuring shelter and it left many people badly shaken from the experience. ... People that went through the Great Depression and survived will forever remember the way that it felt to stand in line for hours for food or even to...
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The Great Depression When Franklin D. Roosevelt took office, America was going through what was known as the Great Depression. ... Farm families are an example who suffered during the Great Depression. ... The banks were closing down due to the depression. ... The Great Depression was not the first or only depression Americans had seen, but it was the worst. ...
The Great Depression The Great Depression was the greatest economic slump to ever occur in US history. The depression began in late 1929 and lasted throughout the following decade. Several factors played key roles in bringing about the depression. ... However, though a great deal more work was being done, the average wage for a manufacturing worker increased minimally. ... Though the Great Depression has long since ended, it continues to leave an indelible imprint on our economic society. ...
Great Depression was the worst and longest economic collapse in the history of the modern industrial world. ... The depression started in the United States and spread to most of the world's industrial countries. ... During the Great Depression there were rapid falls in the production and sale of goods and a rise in unemployment. There were many factors to the cause of the Depression. ... Another one of the factors to the Great Depression was what the government had done or had not done to ensure that this would not happen. ...
The Great Depression On Thursday October 24, 1929 at 10:00am the stock market bell went off at the New York Stock Exchange, stocks were plummeting down. ... The Great Depression did not just happen there were many factors that contributed to the depression like the United States international credit system, economic dependency, and international trade policies. ... The great depression is a very important chapter in our history. Through the great depression we learned many great lessons and as a country we came to realize how fragile what may ...
Causes of the Great Depression The Great Depression was the severe economic crisis that began in 1929, that sent the United States into a frenzy. ... It's undeniable that the Great Depression was one of the hardest trails the US has had to endure. ... The Great Depression was a trying and difficult time for America. ... Work Cited Page America's Great Depression. ... Available http://odur.let.rug.n1/~usa/H/1994/ch9_p8.htm "Great Depression" Encyclopedia.com . ...