"What goes up must also come down"
-Newton's Law of Gravity
Although they appear to be unrelated, the Stock Market Crash of 1929 and these words are closely connected. Following the laws of universal acceleration, gravity causes an object to achieve higher speeds when dropped from larger distances. With these high speeds, a greater force is achieved. The market crash resembles this due to the fact that a high economic level was reached compared to the expected level for that time, and when it fell, it fell faster and farther than any other recession. The question is, however, what let go to let this "gravity" take its toll? In more literal terms, What caused the Great Depression? Although many strong arguments may be made otherwise, income misdistribution, speculation and installment buying, and overproduction eventually led to the Great Depression. Each of these factors alone could of caused problems, but when combined, they reacted to create the biggest economic famine this country has ever seen.
United States
United States
United StatesCapitalism, what a concept. In this cruel, yet fair competition we call a financial system, those who work the hardest reap the most benefits. On the flipside, the ones below these high ranking individuals suffer for the sake their master's benefits. This was very commonplace in America following the turn of the century due to the infamous "robber barons". Although many advances were made for the worker in the years prior to the twenties; long hours, low wages, and bad working conditions were still very common in this era as well. By 1929, "the wealthiest 5% of the US population received about 33% of the nation's personal income." (Doc 9) On the other side of the sword, over 50% of the US population were below the poverty line. (Doc 9) It was quite clear...