The Great DepressionDuring the 1920s, the United States entered a period of economic prosperity and technologicaladvances in the areas of transportation, communication, electrification, and the arts. These goodtimes concealed, or hid problems in the American economic system and attitudes about the roleof government in controlling the economy. The country was about to enter a time of little moneyand little economic growth. This era, called the Great Depression,would last into the 1930sand have a widespread and severe impact on American life.Economists have argued for years about the causes of the Great Depression. However, threefactors played a significant role. The first factor was the stockmarket crashin late October of1929. The stock market is a place where people can buy shares or stocks of companies. Bybuying stocks, a person is actually buying a small piece of a company. During the 1920s, theeconomy was healthy and many Americans were investing and making money in the stockmarket. In time, people became overconfident in the market. They began to borrow money tobuy more and more stocks in the hopes of making bigger profits when they sold the stocks.