How Did The Prosperity of the 1920s Lead to the Great Depression?
Life was great, people had money in their pockets and food in their hands. Vehicles were cheap and various new inventions, such as the radio, affordable. Companies strived to convince the population that they needed the newest thing, and needed it now, spending millions on advertising. Consumption became the path to fortune and personal happiness, and with the installment plan, it was easier than ever. However, at the urging of big businesses and President Calvin Coolidge, America’s grew, and the population borrowed more than what they had. Federal corruption, business monopolies, and individual debt lead to the Great Depression. President Calvin Coolidge favored big businesses. During his term, the national government promoted and protected the privileges of business. When Attorney General Stone threatened to take action against a genuine monopoly, Coolidge promoted him to the Supreme Court. Stone’s successor did not continue the case (Parrish). Coolidge appointed William E. Humphrey to the Federal Trade Commission (FTC), an agency charged with rooting out “unfair” methods of competition. Prior to his appointment, Humphrey had denounced the FTC as an …show more content…
Several of those factors were corruption in federal government, monopolies of businesses, and the greed of the American people. The government pocketed cash, the businesses controlled the economy, and the Americans brought goods without restraint. In the end, which component had the greatest role? Was it the businessmen who bombarded the population with advertisement? Or was it the government that cheated its people? Perhaps it was the ignorance of the population? It was a combination of all three, but in the end, Americans only have their greed, to blame. If the Americans of the 1920s were like their colonial forefathers, then perhaps the Great Depression would not have came
Life was great, people had money in their pockets and food in their hands. Vehicles were cheap and various new inventions, such as the radio, affordable. Companies strived to convince the population that they needed the newest thing, and needed it now, spending millions on advertising. Consumption became the path to fortune and personal happiness, and with the installment plan, it was easier than ever. However, at the urging of big businesses and President Calvin Coolidge, America’s grew, and the population borrowed more than what they had. Federal corruption, business monopolies, and individual debt lead to the Great Depression. President Calvin Coolidge favored big businesses. During his term, the national government promoted and protected the privileges of business. When Attorney General Stone threatened to take action against a genuine monopoly, Coolidge promoted him to the Supreme Court. Stone’s successor did not continue the case (Parrish). Coolidge appointed William E. Humphrey to the Federal Trade Commission (FTC), an agency charged with rooting out “unfair” methods of competition. Prior to his appointment, Humphrey had denounced the FTC as an …show more content…
Several of those factors were corruption in federal government, monopolies of businesses, and the greed of the American people. The government pocketed cash, the businesses controlled the economy, and the Americans brought goods without restraint. In the end, which component had the greatest role? Was it the businessmen who bombarded the population with advertisement? Or was it the government that cheated its people? Perhaps it was the ignorance of the population? It was a combination of all three, but in the end, Americans only have their greed, to blame. If the Americans of the 1920s were like their colonial forefathers, then perhaps the Great Depression would not have came