1. Mass Production and Oversupply

The early 20th century saw a dramatic shift in how goods were produced. Mass production, fueled by innovations like the assembly line, allowed factories to churn out products faster and cheaper than ever before. Think of Henry Ford's Model T car – by making it affordable, he opened up car ownership to millions.

This abundance, however, came with its own set of problems:

⭐Oversupply: With so much being produced, businesses struggled to sell everything they made. This led to price drops and cutbacks, as companies fought for a shrinking share of the market.
⭐Consumer debt: People bought more than they could afford, taking advantage of new credit options. This led to a build-up of debt that ultimately contributed to the economic crisis of the 1930s.
⭐Wage stagnation: Despite the boom in production, wages for workers didn't keep pace. Many workers felt the benefits of the economic growth were not shared equally.
⭐Environmental impact: Mass production relied heavily on natural resources, leading to increased pollution and resource depletion.

The era of mass production and oversupply laid the groundwork for economic instability leading into the Great Depression.

2. The Progressive Era in the United States (1890-1920)

This period was a time of reform and change in the United States, aimed at addressing problems created by industrialization. The Progressives believed in using the government to fix social and economic issues.

Key goals of the Progressive Era:

⭐Combating corruption: The era saw a push to clean up corrupt government practices, particularly in cities, through measures like civil service reform and primary elections.
⭐Protecting consumers: The Progressives championed legislation like the Pure Food and Drug Act and the Meat Inspection Act, which aimed to protect consumers from harmful products.
⭐Promoting social welfare: They pushed for women's suffrage, child labor laws, minimum wage laws, and improved working conditions, ultimately leading to the Social Security Act in the 1930s.
⭐Regulating big business: The Progressives sought to control the power of large corporations through antitrust laws, like the Sherman Antitrust Act and the Clayton Antitrust Act.

The Progressive Era failed to address some critical issues, like racial inequality and the plight of farmers, but it laid the foundation for later reforms and a stronger social safety net.

3. 7.1 The Great Crash (1929)

The Stock Market crash of 1929, known as Black Thursday, was a pivotal event that marked the beginning of the Great Depression. Here's what led to it:

⭐Overvalued stock market: The roaring 1920s saw a rapid rise in stock prices, fueled by speculation and easy credit. Many investors bought stocks with borrowed money, creating a bubble that was bound to burst.
⭐Oversupply and falling demand: The problem of overproduction continued, leading to declining prices and profits for businesses. Consumers, saddled with debt, began to cut back on spending.
⭐Bank failures: With businesses struggling, people began withdrawing their money from banks. This led to a wave of bank failures, as they couldn't meet the demand.

The Great Crash was a catalyst for the global economic downturn that followed. It led to widespread unemployment, poverty, and social unrest.

Further details about the Great Depression will be explored in subsequent sections.