The Great Depression, it was a time in our history spanning through the 1930’s that saw an extremely dramatic economic downturn, well known as the worst in our history. It’s affect was felt by people all over the world. This dramatic economic condition is now referenced as the the worst that the economy could ever get. It’s affect ran over, so to speak, so many people from every economic class. It not only affected companies but it affected just about everyone across the board, no discrimination. Everyone was in it for the long haul. People’s income began to marginally decrease to the point the profit people and companies made kept decreasing, the governments tax revenue plummeted , the price of things dropped because the value and worth of
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This was really a way to only make the rich, richer and the poor, well destitute. The nations overall income rose dramatically and the distribution of money was poorly mishandled. The upper class people’s income in the economy was higher than the combined income of the middle and lower class people. One example maldistribution is Henry Ford. Mr. Ford was making an enormous amount of money from his new automobile invention, the Model T. Ford was bringing home almost 14 million dollars per year in a time a loaf of bread was 5 cents. The average income back then was just 750 dollars per year! If you compare that to today’s average income, which is about 24,500, then Mr. Ford would be making nearly 395 million dollars per …show more content…
Some banks were even forced to close their doors without warning.This meant nobody had access to their money. They essentially lost all of their savings. The major loss was trust, They all became hesitant in putting their money in banks which lead to the failure of further banks. People began to become extremely frugal and hesitant to spend any money on anything. Once people stopped buying products and stopped spending, leading to the closing of companies and loss of jobs for the factory workers of those companies. This started a cycle where less spending meant less company profit, which meant loss of jobs, leading to unemployment at high rates so once again spending was affected because people had dropped incomes preventing them from buying.
The effects of the Great Depression were ongoing for many years. There were also many countries were affected besides the United States. It affected countries such as Australia, Canada, East Asia, France, Germany, Latin America, Netherlands, Soviet Union, and many others that were less affected. Australia, Canada, the Netherlands, Germany, and Latin America were affected majorly. These countries were mostly affected by their exporting goods since trade was shut down because of the depression and unemployment rates dropped dramatically as
This was really a way to only make the rich, richer and the poor, well destitute. The nations overall income rose dramatically and the distribution of money was poorly mishandled. The upper class people’s income in the economy was higher than the combined income of the middle and lower class people. One example maldistribution is Henry Ford. Mr. Ford was making an enormous amount of money from his new automobile invention, the Model T. Ford was bringing home almost 14 million dollars per year in a time a loaf of bread was 5 cents. The average income back then was just 750 dollars per year! If you compare that to today’s average income, which is about 24,500, then Mr. Ford would be making nearly 395 million dollars per …show more content…
Some banks were even forced to close their doors without warning.This meant nobody had access to their money. They essentially lost all of their savings. The major loss was trust, They all became hesitant in putting their money in banks which lead to the failure of further banks. People began to become extremely frugal and hesitant to spend any money on anything. Once people stopped buying products and stopped spending, leading to the closing of companies and loss of jobs for the factory workers of those companies. This started a cycle where less spending meant less company profit, which meant loss of jobs, leading to unemployment at high rates so once again spending was affected because people had dropped incomes preventing them from buying.
The effects of the Great Depression were ongoing for many years. There were also many countries were affected besides the United States. It affected countries such as Australia, Canada, East Asia, France, Germany, Latin America, Netherlands, Soviet Union, and many others that were less affected. Australia, Canada, the Netherlands, Germany, and Latin America were affected majorly. These countries were mostly affected by their exporting goods since trade was shut down because of the depression and unemployment rates dropped dramatically as