The Uneven Distribution of Income:
Overproduction was one factor contributing to the onset of the Great Depression.
More efficient machinery increased the production capacity of both factories and farms.
Most efficient, however, did not earn enough to buy up the flood of goods they help produce.
In 1929, the top 5% of all American households earned 30% of the nation’s income.
In contrast, about 2/3 of families earned less than $2500 a year, leaving them with little disposable income.