Question

How did the economic conditions of the 1920’s lead to the Great Depression and New Deal?

Answer 1

The crash of the New York Stock Exchange on October 29, 1929, signaled the start of the Great Depression, the worst economic crisis in U.S. history. ... For much of the 1920s the United States seemed prosperous. Many Americans were employed, and goods such as automobiles, appliances, and furniture flowed out of factories

Answer 2

The first thing was a poor credit structure farmer's interest rates on their loans went through the roof.

Step-by-step explanation:

There were many things that caused the great depression. The farmer's property was already mortgaged to the banks and when it was time to sell their crops the price was too low for them to be able to pay off their debt. Bankers were also investing poorly in Wall Street and giving loans that couldn't be repaid as well as the banking system as a whole not being regulated properly by the Federal Reserve. poor allocation of consumer purchasing power & consumer demand, lack of diversification in the economy, and turn down in American participation in world trade are the major cause of the fret depression. Moreover, the government’s responses by 1932 were not so effective. For the case, the government spent only 1.5% of all government funds on relief and this was a very bad response of the government toward people. For that reason; the government was unable to pull the country out of it