What were the weaknesses of the 1920s economy that led to the crash?

2. 1) Unequal distribution of wealth • 60% of all American families had an income of less than $2000 per year (i.e. they were living below the poverty line).

How did distribution of wealth caused the Great Depression?

The Great Depression was partly caused by the great inequality between the rich who accounted for a third of all wealth and the poor who had no savings at all. As the economy worsened many lost their fortunes, and some members of high society were forced to curb their extravagant lifestyles.

Why was the distribution of wealth a problem in the 1920s?

During the 20’s, low wages for many Americans help cause the uneven wealth because many Americans worked in factories or on farms that did not leave them with a lot of money. The few Americans who were rich owned the businesses that many Americans worked in and earned low wages.

Why was prosperity in the 1920s a cruel illusion?

For many groups of Americans, the prosperity of the 1920s was a cruel illusion. Even during the most prosperous years of the Roaring Twenties, most families lived below the poverty line. Selling price was much less than purchasing prices, most stocks were worthless.

How was the 1920s prosperous?

The prosperity of the 1920s led to new patterns of consumption, or purchasing consumer goods like radios, cars, vacuums, beauty products or clothing. The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans.

Why was technology important in the 1920s?

The 1920s was a decade of new inventions. To help them enjoy their new lives new technologies such as the radio, silent movies and Henry Ford’s automobile industry were invented. After WWI, America bathed in economic prosperity, allowing them to enjoy more leisure time and technology.

Who was the richest person in the 1920s?

By half decade

How did technology change American life in the 1920s?

Technology affected American lifestyles in two main ways. First, it gave Americans more leisure time. By the 1920s, there were many more labor saving devices, particularly ones that reduced the difficulty of housework. These gave Americans more time to do things other than simply working.

What technology was around in the 1920s?

The list of inventions that shaped America in the 1920s included the automobile, the airplane, the washing machine, the radio, the assembly line, refrigerator, garbage disposal, electric razor, instant camera, jukebox and television.