The economy is based on money. If a person isn’t well-off financially, it means that they are probably from a lower class of people. Since America is an extremely capitalist country, the concept of classes revolves around money.
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Society has many different classes with the more affluent being at the top and the poorer being at the bottom. Some may argue that the upper classes have a lot while others argue that they have very little. But how did money affect everyone regardless of their class?
Unplanned unemployed, and severe wage cuts became the order of the day
During the Great Depression, the American economy was in shambles. Families depended on government assistance to survive, wages were extremely low, and living expenses were incredibly high. The Great Depression posed its own set of problems. Companies that were still functioning could not fund enough workers to fill their positions. The lower class received low wages on long working hours.
Now, getting a house regardless of the exorbitant rates became a form of gaining status too.
Somehow, people became obsessed with gaining status. People believed that being able to afford a house signified success, and the wealthy were obsessed with it too. This resulted in the housing market seeing a surge and the lower class having difficulty making reasonable purchases. Now, getting a house regardless of the exorbitant rates became a form of gaining status too. People were obsessed with the idea of having enough money to buy a home and make it into a status symbol. With the housing market in a frenzy, the middle class was caught up in the race for success. This resulted in breakdowns and depression for many families.
In all these frantic pulses, the upper class tied the power of money to the gold standard
As the depression continued, people realized the importance of money. They began to tie the power of money to the gold standard. The upper classes began hoarding money to see the country through another economic crisis. The lower classes began selling everything to have money to survive. The middle classes began selling their homes to pay for the necessities of life. People were obsessed with having enough money to survive another economic crisis. The gold standard became a source of pride for the upper classes and a way to survive another economic crisis.
The government stepped in and created a series of programs to help the lower classes. The gold standard was one of these programs because it tied the power of money to the price of gold. The government exchanged one dollar for redeemable gold certificates. Many people began to lose faith in the US dollar and the US government’s ability to survive another economic crisis.
The middle class found themselves living beyond their means
Politicians, media personalities, and celebrities of all stripes captivated the public’s imagination with tales of lavish spending and excess. In the rush to break records, the middle class succumbed to the temptation of excess and, in the process, created an unsustainable economic burden. Boats, planes, cars, and homes have been purchased with a frequency that defied logic. Then, when the new asset was no longer new, the owner would put it up for sale and move on to the next thing. The burden was increased by the inflated prices such sales created.
While the upper class continued manipulating the market
The upper class continued its manipulation of the market through investment in financial institutions. In this way, they were able to keep the wealth of the country in their hands. They manipulated the market through the manipulation of interest rates and the inflation of the currency.
Those who understood decided to live with as much frugality and financial restraint as possible
The people who understood money and its usefulness decided to live with as much frugality and financial restraint as possible. They learned to resist the passion for instant enrichment for greater heights in the future. They learned to live within their means and not to be slaves to the marketplace. They also learned to resist the passion for instant enrichment for greater heights in the future. Instead of living in the moment and spending money frivolously, they saved it for future use.