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How was the unequal distribution of wealth connected to the Great Depression?

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princess282 | Student, Grade 10 | Honors

Posted February 22, 2012 at 11:08 PM via web

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How was the unequal distribution of wealth connected to the Great Depression?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted February 22, 2012 at 11:18 PM (Answer #1)

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According to mainstream historians, the connection between these is that unequal distribution of wealth did a great deal to cause the Depression.

The idea is that the rich had too much of the money and the rest did not have enough.  When the Depression started, this meant that the non-rich did not have enough money to spend to tide them over.  If the wealth had been distributed more equally, the average person would have been able to spend more and the demand for goods and services would not have dropped so severely.  If the US as a whole had had the same amount of wealth, but distributed more equally (historians argue) the Depression might not have happened.

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