Question

What factors led to the panic of 1819 and what government regulations might have prevented it

Answer 1

The inflated economic bubble burst in 1819, resulting in a severe downturn in the economy called the Panic of 1819. The decrease in the value of agricultural goods left farmers unable to pay their debts. With their loans, banks seized their property. However, because the drastic fall in agricultural prices had greatly reduced the value of land, the banks were left with farms they were unable to sell. People panicked as called-the Panic of 1819.

Answer 2

Answer: See explanation

Step-by-step explanation:

The Panic of 1819 was a financial crisis that brought about the collapse of the economy of the United States.

The factors that led to the panic of 1819 were due to the fact that there was overexpansion of credit which occured after the wars had ended. Other factors included reduction in the prices of cotton, the closing of several companies in the United States due to low prices and foreign competition.

Government could have prevented this through the use of trade protection to protect its industries. Using trade protection such as ban, quota and tariffs could have prevented this. Also, the excessive borrowing was.onw the factors that led to the panic and the government could have reduced its borrowing. Lastly, the government could have prevented this by not selling land on credit.