USA HISTORY

Detailed explanation-1: -What economic practice became significantly more widespread during the 1920s? Stock market speculation. What was a major reason American farmers failed to obtain a fair share of the economic prosperity of the 1920s? Farm crops were overproduced.

Detailed explanation-2: -A wave of stock swindles and business frauds took place during the 1920s. But the most striking manifestation of the decade’s speculative frenzy was the stock market boom of 1928 and 1929. After rising steadily during the 1920s, stock prices began to soar in March 1928.

Detailed explanation-3: -The main reasons for America’s economic boom in the 1920s were technological progress which led to the mass production of goods, the electrification of America, new mass marketing techniques, the availability of cheap credit and increased employment which, in turn, created a huge amount of consumers.

Detailed explanation-4: -Newly developed innovations like radios, phonographs, vacuum cleaners, washing machines, and refrigerators emerged on the market during this period. These new items were expensive, but consumer-purchasing innovations like store credit and installment plans made them available to a larger segment of the population.

Detailed explanation-5: -It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.