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Having a surplus of products was one of the main reasons that caused the Great Depression. Beginning in the 1920's, with Ford's invention of the assembly line, products began to be cheaper. Most could afford the products (which were marketed to the people for the first time in history, in which marketers tried to get people to buy things they did not need) and those who could not paid on credit. By the end of the 1920's, though, the objects being sold were things that lasted for a long time. People stopped buying and soon the industries were producing more than they sold, giving them a large profit/production cost in extreme misbalance. Stocks began to plummet due to this, and those who saw these profits plummeting ran to the banks, only to find the money they put in there was in turn put into the stocks and therefore was no longer there. The Stock Market than crashed and thousands of banks across the nation shut down, sparking the Great Depression.

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Q: How did having a surplus hurt industries in the 1920s?
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