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Explain how an uneven distribution of wealth weakened the U.S. economy.

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Answered 1 year ago
Answered 1 year ago

Uneven distribution of wealth was a serious threat to the economy of the United States. The main problem was that a small percentage of the population had an annual income that was more than 50 times higher than the average income. However, these rich families did not need to buy 50 times more products than the poor ones. Poor families did not have the means to buy as many products as they needed. In this way, there was a mismatch between supply and demand, which marked the beginning of the decline of the US economy.

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