THE GREAT DEPRESSION 1929 1940
PRESIDENT HERBERT HOOVER AND THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Black Tuesday
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Speculation
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Unequal distribution of wealth
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Buying on Credit
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Detailed explanation-1: -The folk saying, “the rich get richer, the poor get poorer”, implies that wealth flows from poorer to richer hands, a concentrating diffusion. Its academic statement is the Surplus Theory of Social Stratification.
Detailed explanation-2: -In a simple explanation: The Rich operates in Abundance mode, while the Poor operates in scarcity mode. Abundance – You give more because you are already in a better position, which in return attracts more returns. And the Rich habit effect is passed on.
Detailed explanation-3: -Economic inequality (also known as the gap between rich and poor, income inequality, wealth disparity, or wealth and income differences) consists of disparities in the distribution of wealth (accumulated assets) and income.
Detailed explanation-4: -The well-worn assertion that the rich get richer while the poor get poorer echoes Karl Marx’s theory of immiseration which said that capitalists could only become richer by lowering wages, thereby reducing the living standards of workers until they had no choice but to revolt.