What Was the Uneven Distribution of Wealth During the Great Depression?

The uneven distribution of wealth during the Great Depression was one of the causes of The Great Depression, as it led to an unstable economy. Other causes of the Great Depression were the stock market speculation and the stock market crash.

The uneven distribution of wealth started when more and more of the nation's wealth found its way into the pocketbooks of those who were already wealthy. This meant that other Americans were earning even less. Important industries during this time were also failing miserably, including coal mining, farming and textiles. As Americans had fewer and fewer dollars to purchase items, the demand for products and services fell.

The Great Depression destroyed not only individuals, banks and companies but also entire corporations. When more than 5,000 banks closed during the Great Depression, more than 9 million savings accounts were destroyed. The lack of an economy led to people losing their jobs, and unemployment soared to an all-time high. In fact, by 1932 there were one million people who were unemployed just in New York City alone. A whopping 50 percent of Cleveland workers were also unemployed. The total farm income in the nation went from $12 billion to $5 billion in the span of 3 years. The nation was in trouble.