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The Great Depression & American Prosperity

1 - How did American prosperity lead to the crash (i.e. poor distribution of wealth, high taxes, war debt and overproduction in industry and agriculture)?
2 - How did American prosperity undermined society?
3 - How did American prosperity undermined business?

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The Great Depression was actually a result of an uneven distribution of wealth in the 1920's between the rich and the middle class as well as between industry and agriculture. This imbalance in wealth is what caused an unstable economy which collapsed in 1929. The excessive speculation of prosperity in the 1920's kept the stock market artificially high along with a false hope of prosperity, but after the uneven distribution of wealth and the imbalance of production in the marketplace came to the breaking point, the market crashed which caused the Great Depression.

Because of the uneven distribution of wealth, there was a huge difference in the amount of income between the wealthy and the middle class. It was expected, therefore, for the wealthy to spend their money on goods in the market place in order to keep the economy strong. However, most wealthy families did not overly-indulge in products offered in the ...

Solution Summary

The expert determines how American prosperity lead to the crash and the great depression. How it underminded the society and business is determined.