Modern industry had the ability to produce vast quaunties of product, but this created a huge problem with because the demand of these good was beginning to decline and there was a surplus of goods that merchants had to sell without profits. There was a one economic problem and that is that income was not distributed evenly to everyone. The amount of money going to the wealthiest was getting larger as the decade proceeded. To factors caused this problem. First the company showed outstanding gain in productivity, but the workers got received a small percentage of the profit.
Only Yesterday: An Informal History of the 1920's In the book, Only Yesterday: An informal History of the 1920's, the author Frederick Lewis Allen started the book by introducing a family (the smith's) in the year 1919. Mrs. Allen depicted the normal woman of the times, who dressed modestly (wearing a dress about 6 inches length from the ground), had long hair and basically took care of all of the household maintenance including doing chores around the house and preparing the meals. Whereas Mr. Smith on the other hand was the head of the household and the bread winner. Allen goes on to depict things that were popular among the normal folks during that time period. For example, the Chicago tribune was widely popular as a reputable newspaper.
Even though there was an abundance of goods mass produced and at a cheap price because of that, so many people now had no jobs so the goods were not being purchased. Even though, from 1920 to 1929, consumerism and overproduction partially caused the Great Depression, the unequal distribution of wealth and income was the most significant catalyst. From 1920 to 1929 consumerism partially caused the Great Depression due to speculation and installment buying. Speculation is the act of investing in a stock with the hope of a big gain but the risk of a big loss. Many of the investors were sure that the stocks they were going to buy were going to grow, therefore they received big loans that, once the market crashed and all the money was gone, they could never pay b... ... middle of paper ... ...e excessive speculation in the late 1920's kept the stock market artificially high, but inevitably led to the big crash.
The era of volatility has created a shift from America being the middle-class society to simply rich or poor (Sachs, 2011). A gap this large has not been experienced since the 1920’s (Sachs). “The top 1% of households takes almost a quarter of all household income” but an economy this top heavy will not be able to succeed (Sachs, 2011, p. 30). The working classes are struggling with housing, wage, and employment issues. Rich individuals are ignoring these troubles, shipping their business operations out of the country, thus furthering the downward spiral of the economy (Sachs).
Many immigrants move to America in hopes of achieving the American dream. Reluctance to grant citizenship to those who work hard in our country make it difficult for in these individuals to gain wealth. In the twentieth century the economy was flourishing, making it easier for people to get jobs; nowadays, in a recession, it is hard to find a job that pays well without a higher education. All of these factors make it harder for one to achieve the American Dream. The richest people of America continuously receive the largest tax breaks.
1924-29 as a Golden Age for the Weimar Republic The 1920's were a time of uproar and fear for many Germans. As well as having to come to terms with the loss of the war and also the losses imposed by the Treaty of Versailles, Germans had to cope with political and economic problems such as the rebellions of the 1919and 1920 and then inflation of 1923. The inflation of 1923 had destroyed people's savings, so there was little money in Germanyitself for investment. In 1924, through the Dawes plan, Germany was lent 800million marks by the USA to invest in industry and trade. The economy began to recover.
Due to these new products consumer spending increase, and in return stimulated the economic. Every ting seems perfect until late 1929 and rather than benefiting from the economic growth and enjoying the new standard of living, people began to witness a huge decline in the economic referred to
Other factors causing the Great Depression includes the over-expansion of businesses to gain more profit. In fact, as businesses over-extended themselves, produced too much products, customers could not keep up with the expansion, since their wages did not increase much. Many desperate customers, wanting to buy "on-time" with their limits income, plunged into the world of credit. Further, the whole economic system was dictated largely by jumbo corporations, the government, most of the time, stayed out of the system. Responding to the Great Depression, President Herbert, during 1931-32 believed that private charities had run out of all funds.
This caused people to withdraw their savings from banks, causing even more to close down. Also there was the weakness of the US economy. After the boom, there was a strain on the consumer goods being bought, and other such things. The companies that sold cars and other luxuries were now producing more than they could sell, and the majority of the American population could not afford to buy them. Companies used huge amounts of advertising, but there was no demand for their products, as people's wages were still low, and prices were still high.
The majority of Gate’s book is about his constant bottle with the congress, whether it was about spending bills, all the way to pulling all the troops out. Gates believed in his strategy to win the wars in Iraq and Afghanistan. Bush was the one president who stood by his side when it came down to war strategy. The Obama administration however was not on the same page. Gates strategy was to move a surge of troops into the war zone to sustain the area enough for the Iraqi and Afghanistan gove... ... middle of paper ... ...et members.