Реферат: The Depression Essay Research Paper Depression of

The Depression Essay, Research Paper

Depression of the 1930s

Depression of the 1930s

The economic depression that beset the United States and other countries in the

1930s was unique in its magnitude and its consequences. At the depth of the depression, in

1933, one American worker in every four was out of a job. In other countries

unemployment ranged between 15 percent and 25 percent of the labor force. The great

industrial slump continued throughout the 1930s, shaking the foundations of Western

capitalism and the society based upon it.

The “roaring twenties” was an era when our country prospered tremendously. The

nation’s total realized income rose from $74.3 billion in 1923 to $89 billion in 1929.

However, the rewards of the “Coolidge Prosperity” of the 1920’s were not shared evenly

among all Americans. According to a study done by the Brookings Institute, in 1929 the

top 0.1% of Americans had a combined income equal to the bottom 42%. That same top

0.1% of Americans in 1929 controlled 34% of all savings, while 80% of Americans had no

savings at all. Automotive industry mogul Henry Ford provides a striking example of the

unequal distribution of wealth between the rich and the middle-class. Henry Ford reported

a personal income of $14 million in the same year that the average personal income was

$750. By present day standards, where the average yearly income in the U.S. is around

$18,500, Mr. Ford would be earning over $345 million a year! This maldistribution of

income between the rich and the middle class grew throughout the 1920’s. While the

disposable income per capita rose 9% from 1920 to 1929, those with income within the

top 1% enjoyed a stupendous 75% increase in per capita disposable income.

A major reason for this large and growing gap between the rich and the

working-class people was the increased manufacturing output throughout this period.

From 1923-1929 the average output per worker increased 32% in manufacturing. During

that same period of time average wages for manufacturing jobs increased only 8%. Thus

wages increased at a rate one fourth as fast as productivity increased. As production costs

fell quickly, wages rose slowly, and prices remained constant, the bulk benefit of the

--> ЧИТАТЬ ПОЛНОСТЬЮ <--