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There were many aspects to the economy of the 1920s that led to one of the most crucial causes of the Great Depression - the Stock Market crash of 1929. In the early 1920s, consumer spending had reached an all-time high in the United States. American companies were mass-producing goods, and consumers were buying.

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Vivii

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Q: Did the over indulgence in the 1920s lead us into The Great Depression?
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How did government economic policies during the 1920s lead to the Great Depression?

Government Economic policies did not lead to the great Depression. The Great Depression started out as a normal recession as part of a business cycle. However, bad government policies (e.g. protectionism) has worsened the recession and turned it into what we now know as the Great Depression.


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How did government economic policies during the 1920 lead to the great depression?

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It didn't really. The Great Depression was caused more by the drought which devistated the economy.


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