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What 3 problems were faced by the US economy on the late 1920s?

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.


What conditions contributed to the end of americas economic prosperity in the late 1920s?

Just Because.


What economic choices caused the economy to become unstable in the late 1920's?

In the late 1920s, several economic choices contributed to instability, including over-speculation in the stock market, where investors purchased stocks on margin, leading to inflated prices detached from actual company performance. Additionally, there was a significant increase in consumer debt, fueled by easy credit and a culture of buying on installment plans. Coupled with declining agricultural prices and uneven wealth distribution, these factors created an unsustainable economic environment that ultimately culminated in the Great Depression following the stock market crash of 1929.


Uneven prosperity personal debt and overproduction were all warning signs of an unsound economy. Another danger sigh was?

Another danger sign was the stock market speculation that characterized the late 1920s, where investors engaged in risky practices such as buying on margin. This created an inflated sense of wealth and stability, masking the underlying economic vulnerabilities. When the market crashed in 1929, it triggered a chain reaction, exacerbating the existing issues of personal debt and overproduction, ultimately leading to the Great Depression.


How did overproduction cause the wall street crash?

overproduction caused the wall street crash because in the late 1920s, more goods were being produced than people who could afford to buy them. As a result companies decreased their prices because there was more supply than demand theirfore american industries made huge lossed. When the demand for consumer goods dropped , some workers became nemployed which meant they could no loger afford to by consumer goods.