Wealth in the 1920's

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Economy 1920's

A Grim Economic Outlook for 2013

Wealth in the 1920's

In the 1920's the Economy began to boom. Wealth was at an all time high and for the first time, in a while, people had money to waste.

Then and Now

Nowadays, like in the 20's, our economy was amazing, which ultimately

Works Cited

Gusmorino, Paul Alexander. "Main Causes of the Great Depression."Http://www.gusmorino.com/pag3/greatdepression/. N.p., 13 May 1996. Web. 30 Sept. 2013.

Saith, Ashwani,” Inequality, Imbalance, Instability: Reflections on a Structural Crisis.” Vol. 42 Issue 1, Jan (2011) p70-86. 17p.

Samuelson, Robert. "How Do 1920s And Today Compare?" Orlando Sentinel. Merrill Edge, 8 Feb. 2001. Web. 01 Oct. 2013.

Works Cited

Hansen, Sally. "Home Appliances." How Home Appliances Have Changed in 70 Years from The People History Site. The People History, 2004. Web. 01 Oct. 2013.

Shmoop Editorial Team. "Economy in The 1920s" Shmoop.com. Shmoop University, Inc., 11 Nov. 2008. Web. 30 Sep. 2013.

Wealth Distribution

Rosenberg , Jennifer. "Historical Importance of Prohibition:." About.com. N.p., n.d. Web. 29 Sept. 2013. <http://history1900s.about.com/od/1920s/p/prohibition.htm>.

Rogers, Jim. "The Money Update." The Money Update. Redhawk, 6 June 2012. Web. 15 Oct. 2013.

• Wealth Distribution in the 1920's was incredibly uneven.
• 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.
• 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.”

The Division of Classes

Whose to Blame?

Not all is well

The Great Depression

• 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 increased productivity went into corporate profits.
• In fact, from 1923-1929 corporate profits rose 62% and dividends rose 65%.”

Even though the 1920's were a great era bringing wealth and prosperity it was just the beginning to a new era. One remembered by everyone. The era of the Great Depression

The Great Depression began in 1929 and didn't end until about 1940 when WWII broke out. The Great Depression was a side affect of the stock market crashing in 1929. This can be linked to today because we are in a recession right now and The Great Depression was just the result of a bad recession.

• Globalization has been accompanied by worsening inequality within core countries of global accumulation processes, as exemplified by China and the USA, where income and wealth inequalities have regained the stratospheric heights of the 1920s.
• In parallel, there are significantly diverging life chances for the rich and the poor.
• Extreme inequalities are deemed intrinsically toxic due to their potential for the subversion of regulatory and accountability institutions, the corrosion of societal norms, and the quality of democracy.
• A general lack of accountability is to blame for the acceptance of the division of classes.

1920's

Consumers vs. Citizens

Home Appliances

Automobiles

2013

Modern/Hand Held Electronics

Motor Vehicles

International Trade

Wealth in the 1920's