How did the Great Depression effect the economy during the 1920's?

Answer 1

Causes of Great Depression

There were several major causes of the Great Depression in the United States. 1. Unequal distribution of wealth. There was not a large middle class. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes. 2. There was over speculation in the Stock Market, which was not regulated.Many Americans purchased stock on credit. This was known as margin buying. 3. Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low. 4. Buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due. 5. Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the taxes laws which were written to encourage business expansion. 6. Banks were permitted to speculate in land and the Stock Market with little government regulations. 7. High tariffs and war debts helped spread the depression world wide. 8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.

Answer 2

The Roaring Twenties was marked by a general feeling of discontinuity associated with modernity, a break with traditions. Everything seemed to be feasible and people did not think the prosperity would end, so when it did they weren't prepared.

Answer 3

There was unequal distribution of wealth in the 1920s.. There was not a large middle class. and while wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes.

There was over speculation in the Stock Market, which was not regulated.

Many Americans purchased stock on credit. This was known as margin buying.

There was Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low.

Buying on credit, known in the 1920s as installment buying, enabled people to purchase things like refrigerators on time, and they did not have money to pay for the product in the future, when the bills became due.

Federal regulations on businesses also contributed to the cause of the Depresion. Especially favorable to the large corporations were the taxes laws which were written

to encourage business expansion.

Banks were permitted to speculate in land and the stock market with little

government regulations.

High tariffs and war debts helped spread the depression world wide.

Answer 4

The effect of the economy during the 1920s had an effect on the causes of the Great Depression of the 1030s. Business continued to grow and outward appearances seemed to indicate no slowdown in site. More new products were developed and the consumer was given the opportunity to buy these products "on time." Government seemed unwilling to try too much regulation for fear of upsetting the economic boom. It was the lack of regulation and not seeing the warning signs of the '20s that caused the Great Depression in the U.S.

Answer 5

The economic policies following the Great War contributed to the causes of the Great Depression. Our agricultural segment of the population was already depressed in the 1920s. There was unequal distribution of wealth in society. There was not a large middle class. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes. The Stock Marketand the buying and selling of stocks was not regulated. There was increased manufacturing and agricultural output, but wages did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low. Buying on credit, known in the 1920s as installment buying, enabled people to purchased things like refrigerators on time, but they did not have money to pay for the product in the future, when the bills became due. Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the tax laws which were written to encourage business expansion.

Answer 6

overproduction of farm products and manufactured goods