Question

Which of the following was the more important reason why there were problems in America during the 1920s:

Social reasons
Economic reasons?
Explain your answer with reference to both bullet points. (12 marks)​

Answer 1

•Unequal distribution of wealth • 60% of all American families had an income of less than $2000 per year (i.e. they were living below the poverty line). Top 5% of people earned 1/3 of the wealth. The only way poorer Americans could consume was through credit and consumption