What was the primary cause of the economic crisis during the late 1920s in the U.S.? 🔊
The primary cause of the economic crisis during the late 1920s in the U.S. was the stock market crash of October 1929. This event marked the beginning of the Great Depression, which saw widespread bank failures, soaring unemployment rates, and severe declines in industrial production. Over-speculation in the stock market, coupled with high consumer debt and fragile banking systems, led to a loss of confidence among investors and consumers. The resulting economic downturn had far-reaching effects on American society, fundamentally altering the role of government in economic affairs and leading to the implementation of New Deal policies.


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