Introduction The Great Depression is almost certainly one of the most misinterpreted events in American history. It is usually cited, as evidence that unregulated capitalism is not the finest in the world and that only a huge welfare state, enormous amounts of economic regulation, and further Interventions can save capitalism from itself. Amongst the many myths nearby the Great Depression are that Herbert Hoover was a laissez faire president and that FDR brought us out of the depression? What caused the Great Depression? To get a grip on that, it’s essential to look at preceding depressions and contrast. The Great Depression was by no way the primary depression this country ever had, but it was obviously the worst. But as America sees, there is good cause to believe that the Federal actions explain many of the troubles that lead up to the stock market crash and the succeeding depression (Andvig, Jens C., 1991, 431-55). Causes of the Great Depression Unequally Distributed Wealth The main causes for the Great Depression were a combination of unequally distributed wealth, the stock market crash, and eventually the bank failures. The unequal distribution of wealth existed on numerous levels. Money was distributed inequitably among the rich and the middle class, among industry and agriculture inside the US, and among the US and Europe. This inequity of wealth created an unbalanced economy. The extreme speculations kept the stock market unnaturally high, but ultimately lead to large market crashes. These market crashes, shared with the uneven distribution of wealth, and bank failures, caused the American economy to crumple (Buehler, E. C., 2002). The distribution of national income became gradually more skewed in the 1920’s. The nations total recognizes income rose from $74.3 billion in 1923 to $89 billion in 1929. Though, the prosperity was not divided consistently between all Americans. “ According to a study done by the Brookings Institute in 1929, the top.1% of Americans had a combined income equal to the bottom 42%. That same top.1% of Americans in 1929 controlled 34% of all savings, while 80% of Americans had no savings at all. While the disposable income per capita rose 9% from 1920 to 1929, those with income within the top 1% enjoyed a staggering 75% increase in per capita disposable income .” (Gusmorino) Gap between the Rich and the Working-Class People A main reason for this gap among the rich and the working-class people was the augmented manufacturing output throughout this period. Thus, wages increased 25% as fast as productivity increased. As production costs fell rapidly, wages rose gradually, and prices remained constant. “In fact, from 1923-1929 corporate profits rose 62% and dividends rose 65%.”(Gusmorino) The federal government favored the original industries (radio and automotive) as opposed to agriculture. Throughout World War 1, the government subsidized farms and paid senior prices for what and further grains. Since the government was feeding the US and Europe, they confident farmers to buy other land, invest in modern methods, and to produce extra food. However, when the war was over, the US stopped helping farmers. Large Concentrations of Wealth and Dependence upon Two Industries Is the Economy The problem with having