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Income Inequality's Role in Depression
- Income inequality in the US contributed significantly to the Great Depression's severity.
- The crash wiped out wealth fueling luxury goods industries, cascading failures through the economy.
US Dual-Phase Depression Response
- US government response had two phases: Hoover's reliance on private sector, then Roosevelt's New Deal intervention.
- Roosevelt's devaluation off the gold standard helped domestic production and exports.
Global Spread via US Credit Collapse
- US credit withdrawal spread the depression globally by triggering liquidity crises in countries reliant on American loans.
- International trade among top nations dropped two-thirds between 1929 and 1933.