Rich or Poor
The Great Depression was a huge economic problem and crisis. It was the biggest and most important economic depression of the twentieth century. It started in the United States and spread throughout the rest of the world. Basically it was a time in U.S. history when business was bad and many people were out of work. There were four main causes that led to the Great Depression. There was an unequal distribution of income. People were buying stocks with borrowed funds. There was a weakness in the International economy then, the stock market crashed.
The depression had three effects, political, economic, and social. The unequal distribution of income was a problem. The rich were getting richer and the poor just kept getting poorer. The upper class just always had money that really didn’t have to work for it. The middle class got by but just barely. The lower class had to work for everything but got nothing. It wasn’t fare how the rich and the poor had to pay the same taxes. As the economy started to get weaker people from every class stopped buying goods. Next, people were buying stocks with borrowed funds. People just started borrowing large amounts of money, thinking they could pay it back but in reality couldn’t. Because of all the borrowed funds, banks started to go out of business. Also, they stopped giving out loans so easily. Another huge cause was the war debts. World War I produced an imbalance in the world’s economy. The last straw, which caused the Great Depression, was the stock market crashing on “Black Tuesday”. Wall Street reached its highest point in September 1929. After that the prices of stocks started to go down slowly, at other times in frightening drops. This scenario has played out several times since the “Great Depression”.
The last time this happened in 2008 the housing market crashed depleting the life savings of many Americans. It also led to severe unemployment and effected markets throughout the world.
I was one of the...