Question

How did the Roaring Twenties contribute to the cause of the Great Depression?

Answer 1

The Roaring Twenties had people making more and more-- so much so that there was an unnecessary amount of items. There had been credit that led to people buying items they could not have bought without credit. Everyone was buying, for example, toasters although it was useless on credit and paying little by little. When this was happening, the economy was affected and this led as one of the greatest factors of the Great Depression.

Answer 2

During the 1920s there was no national economic planning or any significant watchdog agency to monitor the U.S. economy. The Republican administrations of Presidents Warren G. Harding (1865–1923; served 1921–23), Calvin Coolidge (1872–1933; served 1923–29), and Herbert Hoover (1874–1964; served 1929–33) followed a laissez-faire approach. Laissez-faire refers to the deliberate absence of government regulation. None of these presidents attempted to regulate the buying or selling of stocks and bonds; they exercised no controls over banking, manufacturing, or agricultural production. Likewise, no attempt was made to gather or analyze statistics that would have pointed to increasing problems in stock investing and overproduction of agricultural products and consumer goods. This approach to government was a major contributing factor in the Great Depression.