Both answers could be argued as correct, as the uneven distribution of wealth was both a contributing factor to and a result of the Great Depression.
The unequal distribution of wealth in the 1920s meant that a large portion of the population did not have the purchasing power necessary to sustain economic growth. This lack of demand led to overproduction and underconsumption, ultimately contributing to the economic collapse of the Great Depression.
On the other hand, the deepening economic crisis of the Great Depression further exacerbated the wealth gap, as businesses closed, workers were laid off, and those who had investments saw their wealth diminish. This led to a further concentration of wealth in the hands of a few, worsening the economic situation for the majority of the population.
Overall, the uneven distribution of wealth both fueled the initial causes of the Great Depression and was exacerbated by its effects, making it a complex factor in the economic collapse of the 1930s.
Wealth was unevenly distributed. Was this the cause of the Great depression or an effect of the Great depression? Which one answer is correct
1 answer