Please read this, and see in your mind if any of these events are occurring right now. http://www.gusmorino.com/pag3/greatdepression/
This sound familiar, The federal government also contributed to the growing gap between the rich and middle-class. Calvin Coolidge's administration (and the conservative-controlled government) favored business, and as a result the wealthy who invested in these businesses. An example of legislation to this purpose is the Revenue Act of 1926, signed by President Coolidge on February 26, 1926, which reduced federal income and inheritance taxes dramatically11. Andrew Mellon, Coolidge's Secretary of the Treasury, was the main force behind these and other tax cuts throughout the 1920's. In effect, he was able to lower federal taxes such that a man with a million-dollar annual income had his federal taxes reduced from $600,000 to $200,00012. Even the Supreme Court played a role in expanding the gap between the socioeconomic classes. In the 1923 case Adkins v. Children's Hospital, the Supreme Court ruled minimum-wage legislation unconstitutional13.
Hummm A major reason for this large and growing gap between the rich and the working-class people was the increased manufacturing output throughout this period. From 1923-1929 the average output per worker increased 32% in manufacturing8. During that same period of time average wages for manufacturing jobs increased only 8%9. Thus wages increased at a rate one fourth as fast as productivity increased. As production costs fell quickly, wages rose slowly, and prices remained constant, the bulk benefit of the increased productivity went into corporate profits. In fact, from 1923-1929 corporate profits rose 62% and dividends rose 65%10.
The big D in my opinion was a "created" wealth transfer by the Elites of that time.....they also did the old, "create a problem and then come in as the solution" routine. As a result we had the creation of new big government programs and the (non) federal reserve. The great depression was the initial "purchase agreement" to buy out America and the control of this great country by the european/American elites....there have been numerous addendums to this agreement since.
Check out the depressions of the 1907 and 1920. They didn't last long because the Fed and govt intervention wasn't looking for ways to destroy the system like it did in the 1930's - raising discount rate in 1930, cutting the money supply, tarriff act, etc...
When I was a very small boy, my father had a small hotel. We also had a nice home, car, phonograph, radio and nice furnishings. I had my own tricycle and pedal car and at Christmas we had a tree and presents to open. My life was as idealic as it could ever be. Then in 1938, it all changed. I stood outside of our house while the auctioneer sold everything we had. We moved to hells kitchen in NYC with only the cloths on our backs and what we could carry in our luggage. We had no furniture so we slept on the floor. At night we ate mostly smelt or corn and I didn't get enough to eat. We had no ice box, so we kept the left overs, if there were any, out on the fire escape. One day I asked my mother what happened? And she replied, "Now the rich people have all the money and they don't want to spend it". She wasn't literate in English and couldn't read the papers but I think she had it figured out.
Huh? The Federal Reserve wasn't even created until 1913! Students of the 1907 panic will know that a PRIVATE banker named J.P. Morgan was responsible for a consortium of New York banks working together and using their reserves to allow securities loans which in turn propped up capital markets. 1920? What depression? There was a farm crisis in 1920 but nothing along the lines of a "depression". That being said, you're correct in mentioning the Fed's restrictive policies of the early 30's as being complicit in the rate of bank failures.
Holy Crap........Where do you guys come up with this socialist B.S. The wealthy are in a conspiracy to keep you in poverty ? Your father went broke because he borrowed money he could not re-pay. That was his fault. I feel for anyone who loses a job but if you own your posessions you will manage.