Question

Which of the following statements best describes a central idea of the text?

1) Capitalism is to blame for the Great Depression and the end of the Roaring Twenties because this economic system only benefits wealthy people.
2) Americans were more consumed with entertainment and reckless behavior in the 1920s, allowing the government to make bad decisions.
3) Americans were indulging in excess and deregulation during the 1920s, unaware this would contribute to an economic crisis.
4) Hoover's progressive policies were not enough to undo much of the damage that was done during the Harding and Coolidge administrations.

Answer 1

The central idea of the text is Americans were indulging in excess and deregulation during the 1920s, unaware this would contribute to an economic crisis.

The "Roaring Twenties" in the United States was a period characterized by economic prosperity, cultural dynamism, and significant social change. It saw a rise in consumerism, technological advancements, and a flourishing economy. However, this era also embraced excesses and a laissez-faire attitude towards regulation.

The 1920s witnessed a boom in stock market speculation, excessive borrowing, and a lack of effective regulation in the financial sector. Industries such as automobiles, radio, and consumer goods flourished.