The Economy Today
The Great Depression is recognized as one of the most severe economic downfalls of the US that ever happened in the history of America. This whole period of economic downfall lasted about a decade as it began during the late months of 1929. Though there were many factors that are held responsible for the Great Depression in America, but the principle cause was the amalgamation of the immensely unequal distribution of wealth throughout the period of the 1920’s. The widespread stock market speculation that took place in the following years is also one of the main causes. Wealth was distributed in a very much unorganized and uncalculated way to all over the nation, including the industrialist, middle class, the rich as well as the agriculturists within the USA. Wealth was desperately distributed between the US and Europe so the imbalance of wealth created an unequal economy that kept the US stock market synthetically high but practically at the end resulted to large market crashes. A state can only be economically stable if it has a balance in the demand and supply percentage for a strong and proper economic function, a country needs to reach a balance in the total demand and the total supply. The income should not be distributed as desperately as it happened before the Great Depression in the US. Thus during the 1920’s the supply of goods were far more then demanded by the market. Basically the shortcoming was not meeting the requirements of the industrialized society to a satisfactory level rather than the need of the products that were produced in the market.
The economic depression in America was due to many reasons, as one single cause cannot be made the only factor of this economic depression.
There was the Stock Market Crash of 1929. Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. It was the major cause....