THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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So, banks and industries made it easier for people to get things with credit.
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so everyone just does without.
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even though most of them were gainfully employed.
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None of these were correct.
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Detailed explanation-1: -The nation’s total income rose from $74.3 billion in 1923 to $89 billion in 1929. However, the rewards of the 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%.
Detailed explanation-2: -Installment credit soared during the 1920s. Banks offered the country’s first home mortgages. Manufacturers of everything–from cars to irons–allowed consumers to pay “on time.” About 60 percent of all furniture and 75 percent of all radios were purchased on installment plans.
Detailed explanation-3: -Consumption in the 1920s The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans. Now individuals who could not afford to purchase a car at full price could pay for that car over time–with interest, of course!
Detailed explanation-4: -Those workers who managed to keep their jobs received very low wages. The old industries waned for two main reasons. Firstly, they suffered from overproduction and underconsumption . The coal industry was producing too much coal and not enough people and countries wanted to buy it as oil became more popular.