Conditions that Led to the Great Depression

According to “Poverty in the U.S. and the Supplemental Poverty Measure” in 2011, the 46.2 million persons in the United States had income below the poverty line. The statistics in the poverty rate did not differ from the prior year. This is evidence that relieving poverty in the United States should be the priority. In addition, differences between government operations in various countries can affect the efforts to reduce poverty on a global level, as Thomas states, “The

The causes of the Great Depression in the early 20th century is a matter of active debate between economists. Although the popular belief is that the main cause was the crashing Stock Market in 1929 caused the Great Depression, There were other major economic events that contributed just as much as the crash, such as American’s overextension of credit, an unequal distribution of wealth, over production of goods, and a severe drop in business revenue. As these events transpired the state of economic crisis in the US began to skyrocket.

Poverty within the United States is defined as “having an income below a federally determined poverty threshold. ” Poverty thresholds were developed by the United States government in the 60s to benchmark levels of subsistence. Over time these thresholds are often adjusted to account for inflation; it is now typical for the federal government to adjust the poverty threshold levels annually. Poverty levels represent the government’s estimate of the point below which a family has insufficient resources to meet their basic needs. Any family with less income than the established poverty amount is officially classified as poor or as living in poverty. Income as defined by the federal rules can include cash and cash welfare assistance, but excludes any in-kind welfare assistance. There are restrictions a few other

Poverty is not only an individual problem, but a societal problem. Harrell R. Rodgers wrote an article, “Why are People Poor in America?” Rodgers gives two categories of theories that are used when cultural /behavioral or structural/economic. Behavior/culture theorists look at the behavior, culture and values of the poor as the reason for poverty. While structural /ecIn western culture statistics are an excessively used tool in describing social issues. Numbers help explain a situation, but in excesses, can dehumanize a population. A serious social issue that suffers from desensitization is poverty. Poverty, as it is defined by Webster, is the state or condition of having little or no money, goods, or means of supporting; the condition of being poor. The condition of poverty plagues many American families. According to the Census bureau, 15.1 percent of the United States population falls below the poverty threshold. 15.1 percent does not draw the same effect as the actual 46.6 million individuals living in those circumstances. In the United States, poverty has become a growing problem. There are 15 million more people living in poverty today than in the year 2000 (U.S. Bureau of the Census 2013). The poverty threshold, developed by Molly Orshansky, is a tool used to help indicate how many Americans are in poverty. According to the census, 46.6 million of America’s total population makes less than the poverty threshold for a family of four. The condition of being

As explained by George Ritzer, the poverty line is a set value, in terms of income, that establishes who is considered to be living in poverty (Ritzer 220). In the article, Deaton mentions how the World Bank does not take into consideration the costs of necessities in different countries (Deaton). In the United States the Social Security Administration sets the poverty line, and while they do not set it for different countries they do set it for all fifty states of America. Most people can agree

However, this system of measuring poverty is flawed because if a family makes a dollar more above the set limit, they do not qualify for financial help from the government (NCCP, 2008).The poverty threshold is an inadequate measure of whether people are considered poor or not. Current poverty measures are flawed because it assumes how much a family spends and does not accurately include family resources such as Earned Income Tax Credit (NCCP, 2008). The way that the government measures poverty is based on outdated information that was set in the 60s. Because it has not been sufficient to keep up with the standard of living, those who are living in “high cost cities like New York and those who live in rural areas of the country” (NCCP, 2008) are barely getting by.

In the United States, income poverty is defined by the poverty threshold, developed in 1959 and based on expected food expenditures (thrifty food basket) for families of varying sizes. Each year the threshold is adjusted for the Consumer

The current method to measure poverty fails to capture the whole financial situation of the individual for family seeking assistance. The eligibility guidelines for the benefit is based on outdated household income figures, does not adjust for geographic location nor capture a true reflection of one’s basic need for survival.

In the 1920s, American economy had a great time. The vast majority of Americans in 1929 foresaw a continuation of the dizzying economic growth that had taken place in most of the decade. However, the prices of stock crested in early September of 1929. The price of stock fell gradually during most of September and early October. On “Black Tuesday” 29 October 1929, the stock market fell by forty points. After that, a historically great and long economic depression started and lasted until the start of the Second World War. The three causes of the Great Depression are installment buying, uneven distribution of wealth and the irrational behavior in the stock market.

In the summer of 1929 the American economy started a downward spiral into what would later be known as the Great Depression. Consumers ceased to purchase unnecessary items and unsold products began to stockpile in manufacturer’s warehouses. 6This slowed manufacturing and production. 5Although the companies did not have an increase in value, their stock prices continued to rise. 3Finally, in October of that same year, the stock market crashed. Investors panicked and suddenly flooded the market with their shares. Black Thursday and Black Tuesday, the two most notable days of stock sales, are known for when approximately 29 million shares were sold.

poverty measure was developed in the 1960s during President Johnson’s War on Poverty, using the 1955 Household Food Consumption Survey. The National Academies of Science’s panel in the mid-1990s was set up to address key shortcomings of the official measure. In 1995 the National Academies of Science recommended changing the measure. Plans to develop a supplemental poverty measure to complement, but not replace, the existing official poverty statistic were announced by the U.S. Commerce Department on March 2, 2010. The Supplemental Poverty Measure (SPM) which, unlike the official poverty measure, counts government non-cash benefits like food assistance, rent subsidies, and tax-based benefits as income. It also subtracts from a family’s income various taxes, work expenses, and out-of-pocket medical spending.

In 2010, about 46.2 million people were considered poor. The nation’s poverty rate rose to 15.1 percent, whereas in 2009, 14.3 percent of people in America were living in poverty (Censky, 2011). That is an increase of 2.6 million people in 2010. In the United States, the federal poverty line – an absolute measure of annual income – is frequently used to determine who is categorized as poor (Ferris & Stein, 2008, 2010). Currently the government defines the poverty line as an income of $11,139 for an individual and $22,314 for a family of four (Censky, 2011). In sociology, poverty can be defined using two terms – relative deprivation and absolute deprivation. Relative deprivation is a comparison between people and social class. With

There are various factors that led to the Great Depression. To begin, the lack of bank regulation was a big factor. The Federal Reserve Act which made banks have money on reserve, was not enforced. Another big factor was easy credit, Easy credit made it easy for people to get money out the bank without having the money to pay it back. Furthermore, the reduction in purchasing across the board can easily be said to be another key factor. With the stock market being down many people within every social class stop purchasing items. Which would cause a decreased not only the number of items being purchased but also the loss of people jobs. Many people had thing on layaway, so usually they would just pay for it monthly. However once they lost their

Ronald Reagan once said, “We fought a war on poverty, and poverty won.” I read the book, Dancing in the dark by Morris Dickstein. This book was about the great depression, and the impacts it had on American life. The traditional thought of poverty, people dying of hunger and people lying in the roads, has been erased. America has abolished poverty by the traditional standards but the thought of poverty and what it is has changed. In America we consider poverty to be spending all your money on bills, so you have no money left for food to feed your family. We consider poverty to be just being poor. One-Third of our population makes less than $38,000. This is not enough to be able to be above the poverty line. Anything below this

Poverty has been on a incline since the economic downturn in 2007. Poverty is defined as “the state of being inferior in quality or insufficient in amount”, but a more modern definition used today is “in state of being extremely poor”. According to “Poverty in the United States” a report done by Congressional Digest, the poverty line in 2012 was 15.0 percent, which represents 46.5 million people living at or below the poverty line, and was 2.7 points higher in this year than in 2007. The article also stated that in 2012, the family poverty rate and the number of families in poverty was 11.8 percent and 9.5 million and the median income for households was $51,017, which means many of these households have students who become eligible for free lunches. In Lindsey Layton’s article “Most Public