A Level History - America - Practice Exam

What did many critics attribute to the economic problems faced by low wage earners in the 1920s?

1. Rapid industrialization

2. Income inequality

3. Immigrant labor

4. Government intervention

The correct answer is: Income inequality

Many critics attributed the economic problems faced by low-wage earners in the 1920s to income inequality, which became increasingly pronounced during this decade. The 1920s, also known as the Roaring Twenties, were characterized by significant economic growth and widespread prosperity for many Americans, particularly among the wealthy and middle classes. However, this prosperity was not equally shared. A small percentage of the population amassed significant wealth, while many workers, especially those in low-wage jobs, struggled to secure a living income. Critics argued that this growing income gap led to an economic environment in which low-wage earners could not keep pace with rising costs of living, including housing and basic necessities. This disparity created a cycle of poverty that affected millions, as many low-wage workers found themselves unable to save or invest in their future, leading to broader economic instability. They pointed out that the benefits of the booming economy were not sufficient to address the dire circumstances faced by these individuals. In contrast, while rapid industrialization and an influx of immigrant labor contributed to the overall economic landscape, they were not solely responsible for the income disparity. Furthermore, government intervention during this period was often minimal, as the prevailing belief advocated for laissez-faire economic policies