Economy In The 1920s Essay

I’m going to speak up the USA society and the Economy in the 1920’s and how it undermined the long-term sustainability of the Economy.

The huge wealth that appeared to exist in America in the 1920’s was an illusion. The danger signs in the american economy was apparent well before the wall street crash. As is typical of post war periods, americans in the Roaring twenties isolated themselves from international issues and social concerns and moved towards greater individualism. The emphasis was on getting rich and enjoying new inventions, and new ideas. Prosperity could continue only if demand was made to grow as rapidly as supply. According people had to be persuaded to abandon such traditional values as saving, postponing pleasures and purchases,

Income was distributed very unevenly, and the portion going to the wealthiest americans grew larger as the decade proceeded. This was due to largely to two factors. One of them being that businesses showed remarkable gains in productivity during the 1920’s, workers got a relatively small share of the wealth this produced. And the second one was that at the same time, huge cats were made in the top income-tax rates. Between 1923 and 1929, manufacturing output per person, per hour increased by 32 percent, but workers wages grew by only 8 percent. Corporate profits shot up by 65 percent in the same period, and the government let the wealthy keep more of those profits. The revenue act of 1926 cut the taxes of those making $1 million or more by more than two thirds. In 1929 the top 0.1 percent of american families had a total income equal to that of the bottom 42 percent. This meant that many people who were willing to listen to the advertisers and purchase new products did not have enough money to do so. To get around this difficulty, the 1920’s produced another innovation credit, and attractive name for