Q:

What was uneven distribution of wealth during the 1920s?

A:

Quick Answer

In the 1920s, prior to the Great Depression, the distribution of wealth was uneven due to most of the money going to America's rich and not being evenly distributed to everyone in the United States. This type of distribution meant a gradual decline in the people's spending power.

Know More

Full Answer

This uneven distribution caused prices to go up on products as the factories put them out en masse, but the everyday laborer was increasingly unable to buy the products. The top 1 percent of Americans each had a wealth equal to the bottom 42 percent combined. That same 1 percent controlled 34 percent of all savings. During this period leading up to the Great Depression, the prices of farm products fell about 40 percent, making things very hard for farmers. Many farmers had to leave their farms or rent out portions to be able to pay the mortgage on their farms.

Learn more about US History
Sources:

Related Questions

  • Q:

    Why did Mark Twain call it the "Gilded Age"?

    A:

    Mark Twain used the term "Gilded Age" to describe the late 1800s in America, a time period marked by greed and corruption despite the glittering wealth on the surface. He coined the term in his satirical novel published in 1873 titled, "The Gilded Age: A Tale of Today."

    Full Answer >
    Filed Under:
  • Q:

    Why was the New Deal important?

    A:

    The New Deal was important because it provided a safer employment outlook for the people of the United States by establishing retirement funds and Social Security, as well as creating more jobs, preventing government corruption and helping the country avoid another Great Depression. The Great Depression started on October 29, 1929, on what is now known as "Black Tuesday."

    Full Answer >
    Filed Under:
  • Q:

    What were the positive and negative effects of the Industrial Revolution?

    A:

    The pros of the industrial revolution were that wealth increased overall, more people entered the middle class and quality of living increased for everyone as a result of technology. The cons include pollution, accidental death and overpopulated cities.

    Full Answer >
    Filed Under:
  • Q:

    What was Coolidge prosperity?

    A:

    As a result of his commitment to balancing the federal budget and his business-friendly policies, President Calvin Coolidge successfully strove to maintain the economic good times the United States enjoyed between the short depression that occurred immediately after World War I and the Great Depression. Other characteristics of "Coolidge prosperity" included rising wages, declining unemployment, decreasing inflation and a bull market.

    Full Answer >
    Filed Under:

Explore