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It didn't necessarily "cause" the depression, however, it allowed for more financial disruption. People in the twenties (1920s) were beginning to buy on margin, this new concept for them that excited them beyond belief. Unfortunately, what the began to do, is spend more money than they had, it was practically imaginary money that put the individual in debt.
Wiki User
∙ 10y ago
Wiki User
∙ 11y agoPeople were spending money that they didnt have and wouldnt be able to pay back. Once people realized that it was going downhill, everybody tried to withdraw all of their money from the banks. This sent the country into major debt.
Wiki User
∙ 13y agopeople over borrowed and put there self in a bad predicament where they begin to old lots of money
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∙ 11y agoidk. the question is what caused underconsumption and how did effect the country?and the other question is what caused overproduction and how did it effect the country?
Wiki User
∙ 10y agohaloo
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Overproduction and underconsumption factored into causing the great depression by?
Too many goods were being produced in factories (overproduction), and after the stock market crash and other factors, people stopped buying goods in an attempt to save money (underconsumption).
How did the Great Depression affect Belize?
how did the great depression affected Belize
How did the great depression affect Poland?
Not much.
Did the Great Depression affect mutual funds?
The Great Depression and World War II hampered asset growth in mutual funds
How did eugene talmadge affect the great depression?
He did nothing about it to be honest...
Overproduction and underconsumption factored into causing the great depression by?
Too many goods were being produced in factories (overproduction), and after the stock market crash and other factors, people stopped buying goods in an attempt to save money (underconsumption).
How did the Great Depression affect Belize?
how did the great depression affected Belize
How did the great depression affect Poland?
Not much.
How did the great depression affect the farmers?
prices
Who and what did the great depression affect?
no one got acffected
What did eugene talmadge do to affect the great depression?
irene
How did the Great Depression affect the people's confidence in democracy?
There is no answer
Did the Great Depression affect mutual funds?
The Great Depression and World War II hampered asset growth in mutual funds
Did they great depression affect America's film industry?
dsfsd
How did consumer installment buying affect the Great Depression?
cats
How did eugene talmadge affect the great depression?
He did nothing about it to be honest...
How did drought affect Georgia during the great depression?
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