What was one of the "danger signs" that was brewing behind the scenes in the economy for the

decade of the twenties?

The crash of the stock market in October 1929 was not so much the cause of the Great Depression as it was a confirmation that economic conditions in the United States had reached a crisis. The economic problems were long in the making, and a product of diverse factors that had worsened in the 1920s.

One of the key factors that influenced all the other factors in the 1920s was the lack of national economic planning or any other substantial form of active government oversight in the economy. The Republican administrations of Warren G. Harding (served 1921-1923), Calvin Coolidge (served 1923-1929), and Herbert Hoover (served 1929-1933) embraced a laissez faire philosophy. Laissez faire means being relatively free of government control or regulation. These presidents did not plan, nor did they attempt to regulate, banking, stocks, bonds, or other basic aspects of the economy. They also did not gather adequate statistics that, if analyzed, would have highlighted growing problems in stock market investing, agriculture, international finance, and buildup of inventories of consumer goods.

For much of the 1920s, the United States seemed prosperous. Many people were employed, and consumer goods-automobiles, appliances, furniture, and other commodities-flowed out of factories faster than ever. The satisfaction of America's workers was evidenced by the decline in membership and significance of labor unions. A number of Americans were gripped with speculative fever. They invested in unseen real estate, foreign currency, and even stocks in new companies that had yet to manufacture a good. This speculation at such a high level was clearly unhealthy. When the stock market began to plummet, some confronted it with disbelief. Others had already experienced depressed times.

Besides lack of government involvement and over-speculation in stocks and real estate, other possible causes of the Great Depression that have drawn attention include a widespread get-rich-quick mentality, overproduction and low prices for farm produce, a belief that national economies naturally decline in predictable patterns, and a large gap in wealth between the rich and common citizens. Each of these possible causes will be explored below. One fact stands out. The "big crash" was a clear warning sign of deep national economic troubles. These problems continued to worsen through 1932, and their effects stubbornly remained for another ten years.

Overproduction and Under consumption

Explanation:

Too many products were being made, and not enough of the product being bought.