Wealth inequality in the United States in the context of "Great Depression"

⭐ In the context of the Great Depression, increased wealth inequality in the United States during the preceding 'Roaring Twenties' is considered a contributing factor due to…

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⭐ Core Definition: Wealth inequality in the United States

The inequality of wealth (i.e., inequality in the distribution of assets) has substantially increased in the United States since the late 1980s. Wealth commonly includes the values of any homes, automobiles, personal valuables, businesses, savings, and investments, as well as any associated debts.

Although different from income inequality, the two are related. Wealth is usually not used for daily expenditures or factored into household budgets, but combined with income, it represents a family's total opportunity to secure stature and a meaningful standard of living, or to pass their class status down to their children. Moreover, wealth provides for both short- and long-term financial security, bestows social prestige, contributes to political power, and can be leveraged to obtain more wealth. Hence, wealth provides mobility and agency—the ability to act. The accumulation of wealth enables a variety of freedoms, and removes limits on life that one might otherwise face.

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👉 Wealth inequality in the United States in the context of Great Depression

The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States, the largest economy in the world, with the devastating Wall Street crash of 1929 often considered the beginning of the Depression. Among the countries with the most unemployed were the U.S., the United Kingdom, and Germany.

The Depression was preceded by a period of industrial growth and social development known as the "Roaring Twenties". Much of the profit generated by the boom was invested in speculation, such as on the stock market, contributing to growing wealth inequality. Banks were subject to minimal regulation, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment. Share values continued to rise until the October 1929 crash, after which the slide continued until July 1932, accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25%, about one-third of farmers had lost their land, and 9,000 of its 25,000 banks had gone out of business. President Herbert Hoover was unwilling to intervene heavily in the economy, and in 1930 he signed the Smoot–Hawley Tariff Act, which worsened the Depression. In the 1932 presidential election, Hoover was defeated by Franklin D. Roosevelt, who from 1933 pursued a set of expansive New Deal programs in order to provide relief and create jobs. In Germany, which depended heavily on U.S. loans, the crisis caused unemployment to rise to nearly 30% and fueled political extremism, paving the way for Adolf Hitler's Nazi Party to rise to power in 1933.

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Wealth inequality in the United States in the context of Progressivism in the United States

Progressivism in the United States is a left-leaning political philosophy and reform movement. Into the 21st century, it advocates policies that are generally considered social democratic and part of the American Left. It has also expressed itself within center-right politics, such as New Nationalism and progressive conservatism. It reached its height early in the 20th century. Middle/working class and reformist in nature, it arose as a response to the vast changes brought by modernization, such as the growth of large corporations, pollution, and corruption in American politics. Historian Alonzo Hamby describes American progressivism as a "political movement that addresses ideas, impulses, and issues stemming from modernization of American society. Emerging at the end of the nineteenth century, it established much of the tone of American politics throughout the first half of the century."

Progressive economic policies incorporate the socioeconomic principles and views of social democracy and political progressivism. These views are often rooted in the concept of social justice and have the goal of improving the human condition through government regulation, social protections, and the maintenance of public goods. It is based on the idea that capitalist markets left to operate with limited government regulation are inherently unfair, favoring big business, large corporations, and the wealthy. Specific economic policies that are considered progressive include progressive taxes, income redistribution aimed at reducing inequalities of wealth, a comprehensive package of public services, universal health care, resisting involuntary unemployment, public education, social security, minimum wage laws, antitrust laws, legislation protecting labor rights, and the rights of labor unions. While the modern progressive movement may be characterized as largely secular in nature, the historical progressive movement was by comparison to a significant extent rooted in and energized by religion.

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Wealth inequality in the United States in the context of Chicago Freedom Movement

The Chicago Freedom Movement, also known as the Chicago open housing movement, was led by Martin Luther King Jr., James Bevel and Al Raby. It was supported by the Chicago-based Coordinating Council of Community Organizations (CCCO) and the Southern Christian Leadership Conference (SCLC).

The movement included a large rally, marches and demands to the City of Chicago. These demands covered a range of areas beside housing discrimination in the United States, including educational inequality, transportation andemployment discrimination, income inequality, health inequality, wealth inequality, crime in Chicago, criminal justice reform in the United States, community development, tenants rights and quality of life. Operation Breadbasket, in part led by Jesse Jackson, sought to harness African-American consumer power.

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LINKED FROM (PARENTS)
← Great Depression ← Progressivism in the United States ← Chicago Freedom Movement
LINKS TO (CHILDREN)
Federal Reserve → Congressional Budget Office → Inequality of wealth → Resources → Savings → Investment → Income inequality in the United States → Standard of living → Social class in the United States → Political power →