5.+Unequal+Distribution+of+Income

**Unequal Distribution of Income** **
 * In the late 1920's, the new "economic prosperity" in America turned into an economic inequality, as the gap between the rich and poor grew. Rapidly rising wages were distributed among the working class unequally, allowing for advancement for some, and forcing some to a grinding economic halt.** **While the rich Americans continued to obtain wealth, the middle class and working poor fell lower and lower into the poverty. Furthermore, the number of poor Americans was rapidly growing while the number of wealthy remained at only a small percent of the population.


 * Essentially what happened in the 1920's was that there was an overproduction of goods. The poorer people couldn't afford to buy these goods, while the wealthy were able to buy them by spending only a small portion of their income. Since the percent of poor people in the population was much higher than the wealthy, goods were not being bought and businesses were losing money.This caused Americas economy to become very unstable because only the small portion of people who could afford it were investing into the economy. **

 www.newtechhigh.org/gallery/samples/2000/myk_browne/pages/**great**_ **depression**/**d****epression**_ www.geocities.com/capitolhill/senate/6854/**great**dep.html