Here's a truth about the "Roaring Twenties" that photographs of flappers and fancy cars don't show: while some Americans danced the Charleston in speakeasies, others couldn't afford bread. The 1920s boom was like a party that most Americans weren't invited to. By 1929, the richest 5% of Americans owned 33% of all wealth, while 60% of families lived below the poverty line of $2,000 per year. This wasn't just sad — it was dangerous. An economy where most people can't afford to buy things is an economy waiting to collapse. The glittering prosperity was built on foundations of desperate poverty — and when those foundations cracked, the whole thing came crashing down.
This introduction covers Setting the Scene within Wealth and Inequality for GCSE History. Revise Wealth and Inequality in America 1920-1973 for GCSE History with 14 exam-style questions and 15 flashcards. This topic appears less often, but it can still be a useful differentiator on mixed-topic papers. It is section 1 of 14 in this topic. Use this introduction to connect the idea to the wider topic before moving on to questions and flashcards.
Practice questions for Wealth and Inequality
What percentage of American families lived below the poverty line of $2,000 per year by 1929?
How many American farmers went bankrupt during the 1920s as a result of falling agricultural prices?
Quick recall flashcards
How many left rural areas?
6 million
Wheat price change 1919-1929?
$2.50 → $1 per bushel (60% drop)