What factor can lead to the developed of mixed economies? what led to the development of us goverment economic programs in the 1920s and 1930s

Because of the disadvantages of a market economic system most countries in the world choose to use a mixed economic system.

The mixed economic system combines government planning with the use of the free market. In the mixed economy, just as in the market economy, people and firms in the private sector own scarce resources with the aim of making as much money as possible. However in mixed economies the government or public sector also owns some scarce resources to produce goods and services that they think their country and its people need and want.

Throughout the 1920s, the U.S. economy expanded rapidly, and the nation’s total wealth more than doubled between 1920 and 1929.

The stock market, centered at the New York Stock Exchange on Wall Street in New York City,  where everyone from millionaire tycoons to cooks and janitors invested their savings in stocks. Consequently, the stock market experienced a rapid expansion, reaching its peak in August 1929.

By then, production had already declined and unemployment had increased, leaving stock prices much higher than their actual value. In addition to this, wages at that time were low, consumer debt was proliferating, the agricultural sector of the economy was affected by drought and falling food prices, and banks had an excess of large loans that could not be liquidated.

The American economy entered a mild recession during the summer of 1929, as consumer spending slowed and unsold goods began to pile up, which in turn slowed factory production. Nevertheless, stock prices sky-rocketed.

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