What Was Uneven Distribution of Wealth During the 1920s?

What Was Uneven Distribution of Wealth During the 1920s?

In the 1920s, prior to the Great Depression, the distribution of wealth was uneven due to most of the money going to America's rich and not being evenly distributed to everyone in the United States. This type of distribution meant a gradual decline in the people's spending power.

This uneven distribution caused prices to go up on products as the factories put them out en masse, but the everyday laborer was increasingly unable to buy the products. The top 1 percent of Americans each had a wealth equal to the bottom 42 percent combined. That same 1 percent controlled 34 percent of all savings. During this period leading up to the Great Depression, the prices of farm products fell about 40 percent, making things very hard for farmers. Many farmers had to leave their farms or rent out portions to be able to pay the mortgage on their farms.