Free Essays,College Free Essays,Free College Essays at Anti Essays

The great depression, also known as the great slump, was a period of time where economics in all around the world collapsed. The great depression’s biggest impact was to those industrialized countries and those which imported raw materials. Everything fell greatly including international trades, tax revenues, personal income, prices, profits, and even crop prices fell by 40-60 percent at one time. During that period, huge numbers of investors ended up either losing large amounts of money or bankruptcy. So many stores, factories, and bank closed, resulting in a rapid rise in percent for unemployment. The beginning of the great depression was on October 29, 1929, known as the black Tuesday, where the stock market crashed, went on and lasted about a decade. We will go on to discuss more on the causes of the great depression, and what effects and impact that this depression brought to different countries.
The great depression was mainly caused by two reasons, one was the greatly unequal distribution of wealth, and the other was the result of stock market crash. A research has been done for the money distributions in the US for the year 1929, and the top 0.1 percent of the Americans had a combination of equaling the bottom 42 percent. From that same group of 0.1 percent Americans in the same year, they controlled 34 percent of all savings, where compared to 80 percent of Americans had no savings at all. A great example of unequal money distribution would be car company Ford’s owner, Henry Ford. The average personal income of a person in America during that time was $750, but Ford reported a personal income of 14 million just in 1929. With that ratio and compared to today’s standard, where average yearly income is around $18,500 in America, Ford would be earning over $345 millions a year. By that time, both the automotive industry and the radio industry met their maximum profit when credit sales first came out, because people could now buy it and pay for it...