In the 1920s the American wealth exploded. It brought forward an increase of millionaires by 400% but this in turn buried the already poor Americans into a deeper hole of poverty. The difference in income between the wealthy class, the middle class and the poor class was absolutely massive. In total 60% of all Americans lived at or below the poverty line of $2,000.
Throughout the 1920s, the American economy was growing rapidly with the rising stock market, supported by consumer spending, including those enjoying their unrestricted lifestyles and feeding into the illegal liquor industry. However, this came to an end in October of 1929 and lasted for 10 years when the stock market crashed, leaving millions of people with no financial options and unemployment. In addition, international trade and industrial production also collapsed. During this period, President Hoover and President Franklin Delano Roosevelt (FDR), came forward to try and resolve this economic crisis. The documents shown, Document 1: October 18, 1931: Message Regarding Unemployment Relief by Herbert Hoover, express his solution of collaboration, and Document 2, July 24,
During the 1920’s, society as allowed to have freedom in their lives. With shorter, looser clothes, fun parties, and money to spend, many young people became accustomed to this easy, simple lifestyle. In October of 1929, the stock market crashed; in addition, many citizens panicked, pulling their money out of savings, causing the banks to run out of money and close. Many were left jobless, poor, and even homeless, living in small communities called shantytowns or Hoovervilles. When Franklin Delano Roosevelt (FDR) was inaugurated, he was obligated to solve many of these problems and re-instill hope into the heart of American citizens.
The Great Depression, the worst economic low in America’s history, marked the end of a period that was known as being happy for all. The “Roaring 20’s” as they are often referred to, were a cultural transition in America. After the first World War, Americans celebrated by buying things they couldn’t afford, and investing in stocks (two things that often went hand in hand). During this time period, however, the rich got richer and the poor got poorer. This wage gap is not the only economic issue that can be seen in this period.
At the end of the 1920s, after World War I, the United States was an industrial giant boasting the largest economy in the world. Upon accepting the Republican Presidential nomination, Herbert Hoover famously stated “We in America today are nearer to the final triumph over poverty than ever before in the history of any land.” But within months after his inauguration, the stock market crashed. At the time, the American economy were already flawed by disparity in the distribution of wealth and a weak banking system, and within months, the nation’s economy started to spiral downward into the greatest depression it has ever seen.
At the turn of the century, American society has changed dramatically. Many people call the year after Civil war the “gilded age”; the year of economic growth, new technologies and products improved, industrial workers working for low pay, and politicians were corrupt. During this period, the economy grew rapidly, producing enormous amounts of prosperity. However, majority of the population was struggling to get by, while the industrial and financial class people live comfortably.
The poverty line in 1929 was considered to be an annual income of at least $2000. Most people,at the beginning of 1929, were making that and living happily. But, according to Frederick Lewis Allen’s, The Big Change, the US distribution of income was so uneven that 60% of the population was living in poverty. (Doc. 9). With over half of the country living in poverty, businesses had to lower prices and that caused the businesses to lose money and lay off workers, leading to even more impoverished families.
Industrial production dropped by half, breadlines, soup kitchens, and the homeless shelters became popular in America’s town and cities. In Document six, it explains how consumers have to reduce purchases and cut back on spending habits and how farmers struggled not being able to afford to harvest their crops( William E. Leuchtenburg, The Perils of Prosperity, 1914-1932, 1958). Also in Document seven, and eight it states that, people and families have to stretch and makes ends meet on what they have and also finding a way to make things cheaper (Paul Blanshard, “How to Live on Forty-six Cents a Day,” The Nation, 1929/ Fortune, February
“Worst of all, many Americans lost hope. As former president Calvin Coolidge acknowledged in 1932, ‘In other periods of depression, it has always been possible to see some things which were solid and upon which you could base hope. . . but as I look about, I now see nothing to give ground to hope.’” (Emory). The Great Depression (lasting roughly from 1929 to 1939) was, undoubtedly, one of the most troubling and hopeless periods faced by Americans in the early 20th century; inequality prospered as minorities, especially Black people and immigrants, became scapegoats for the country’s record-high unemployment and low quality of life.
During the 1920s, there was considerable growth in income inequality, which led to a decrease in consumer spending and investment in the economy by those who were not wealthy. This created a situation where the economy
The top 1% of the population held more wealth than the bottom 42%, and many Americans struggled to make ends meet. The high unemployment rates and low wages were major problems. Additionally, agricultural prices were low, leading to rural poverty. This inequality was further exacerbated by policies such as the Tax Cuts of 1921, which favored the wealthy and contributed to the growth of the stock market bubble. As a result, many Americans did not experience the economic prosperity often associated with the Roaring Twenties.
In contrast to the glamorous Roaring Twenties, “more than 15 million Americans (one-quarter of the workforce) became unemployed.” Businesses were shut down, and many were losing hope. Families learned to be very frugal, because every penny counted. African Americans struggled even more during this time. “In 1930, 50 percent of blacks were unemployed.”
If you were in poverty in the south it was very hard to get out of. Along with that they had no factories which contributed to people not being able to get out of poverty. Later on the south relied on the north and europe for many things such as borrowing money, farm tools and furniture. “ One southerner described the situation as a burial show to how the south depended on the north for so many goods in the 1850’s.” Most Southerners believed that if cotton remained king that their future for themselves and for their economy was
The period between 1865 and 1910 in America was a time of not only great pain and destruction but also great transition and perseverance. Various ethnic groups and different demographics suffered immense discrimination and tragedy, such as different movements put in place to put an end to different Native American peoples or the lack of gender equality during everyday life for women and men of any race/ethnicity. On top of this, as some corporations came onto a great amount of wealth and prosperity, millions of the country’s working class population, which soon included a second wave of European immigrants, lived under poverty with seemingly no social mobility. Despite these negatives, there were still some benefits to come out of this time
Barbers traded haircuts for vegetables while laborers put in a day’s work for things like eggs, peaches, and pork (Henretta, 2009). During these times people looked to private charities, soup kitchens, bread lines and the help from neighbors but these resources could not permanently lift millions from the Great Depression (Henretta, 2009). American had to adapt to the depression conditions by changing plans and things going on in their lives (Henretta, 2009). Marriage was delayed and couples reduced the number of children the planned to have (Henretta, 2009). Life itself changed for many
