USA HISTORY

Detailed explanation-1: -Some scholars believe that a boom in housing construction in the mid-1920s led to an excess supply of housing and a particularly large drop in construction in 1928 and 1929. By the fall of 1929, U.S. stock prices had reached levels that could not be justified by reasonable anticipations of future earnings.

Detailed explanation-2: -Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.

Detailed explanation-3: -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.

Detailed explanation-4: -Although the 1920s were prosperous, speculation in the stock market, risky lending policies, overproduction, and uneven income distribution eventually undermined the economy and led to the Great Depression.

Detailed explanation-5: -Ford would be earning over $530 million a year! This uneven distribution of income between the rich and the middle class grew throughout the 1920’s. 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.