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In the late 1920s, the US economy faced several significant problems, including overproduction in key industries, which led to falling prices and reduced profits. Additionally, there was a growing disparity in wealth distribution, as a small percentage of the population accumulated vast fortunes while many workers struggled. Finally, excessive speculation in the Stock Market created an unsustainable economic bubble, culminating in the stock market crash of 1929. These issues collectively contributed to the onset of the Great Depression.

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