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AnswerIn the 1920's, there was a lot of artificial wealth created. Many people were rich on paper, but had no tangible holdings to back it up. Companies invested in each other and the stock market was artifically boosted. In October 1929, when citizens began a "run" on banks to withdraw their money, it was discovered that their money wasn't really there. This led to panic, bankruptcies, unemployment, foreclosures, etc.
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โˆ™ 2013-03-13 21:21:00
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Q: How did the Roaring Twenties lead to the Great Depression?
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Related questions

Why did the roaring twenties end?

In the beginning of the twenties America's money was doing great and America went on a huge spending splurge because of it and then invested in a bunch of stocks and the stock marketcrashed so the economy went downhill fast and that caused the Stock Market Crash of 1929 and lead up to the Great Depression in the 1930s

Did the Great Depression lead to cold war?

The great depression of the 1930's led to WW2; WW2 got the US out of the depression.

How did the Great Depression lead to ww1?

this question doesn't make sense, the great depression occured after WWI

What did the Great Depression lead to?

a great lose in the market prices it lead to poverty as well

How did the Great Depression help lead to the rise of dictators?

The Great Depression lead to the rise of dictators because due to the economic downfall of numerous countries during the great depression, many parties revolted which provided the opportunity for dictators to rise.

Thesis of Great Depression in America during 1929-1941?

the stock market crash in 1929 lead to the great depression

Who lead the US out of the great depression?

herbert hoover

How did government economic policies during the 1920's lead to thhe 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.

How did the great depression lead to world war 2?

it didnt

Did Herbert Hoover lead the country out the Great Depression?

no. ww2 did

How did World War 1 costs lead to the Great Depression?

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

What caused the Great Depression of 1930's?

The Great Depression of the 1930s was caused by a stock market crash. This lead to many problems in the United States.

How did World War 1 lead to the Great Depression and World War 2?

It led to the Great Depression because the U.S. was in debt to other countries

How did uneven prosperity help lead to the great depression?

The dog ate it

What is a good analogy for the Great Depression?

The recession of 2008 and the Great Depression of the 1930s have similar beginnings. Financial meltdowns caused a reduction in consumer spending which lead to unemployment in great numbers.

What events lead to the Great Depression Australia?

The World War was the main reason

What lead to the great depression?

hooverville, System of batering, and the stock market crash.

How did Franklin D. Roosevelt lead us through the great depression?


What did severe drought stock speculation and bank crisis lead to?

The Great Depression

In the Great Depression what is Black Thursday?

Yes, it was Thursday OCtober 24, 1929 in NY when the stock market crashed which lead to the Great Depression.

Effects of the Great Depression?

The effects of the Great Depression were huge across the world. Not only did it lead to the New Deal in America but more significantly, it was a direct cause of the rise

What did the stock market crash lead to?

The stock market crash lead to several things but the main thing was Great Depression

President hoover believed this could lead us out of the great depression?

Raising taxes

How did the great depression lead to a change in the relationship between the state and the federal government?


How did the Great Depression affect Miller's family life and possibly lead to the writing of Death of a Salesman?

Miller's father lost his fortune during the Depression.