How did overproduction came to have an affect on the great depression?

Answer 1

This is a simple answer. You can get more complete information about the causes of the Great Depression at Wikipedia.org. There was increased manufacturing (overproduction) and agricultural output, but wages for industrial workers and other laborer, and income for farmers, did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low.

Answer 2

The companies spent a lot on making goods that no one was buying. This meant all the money eventually got to people who supplied raw goods like steel and wood. And so the rich got richer and the poor got poorer.

Answer 3

Simply stated, over production means that a company produces more product than the public will buy. During the 1920s, industry was producing on a large scale and consumers were using things like "buying on time" (credit cards in today's economy) to buy things they could not really afford. This gave a false sense of economic stability but when the Depression hit, the consumer could no longer buy all the products (inventory) that were being produced.

Answer 4

farms cost less because the soil had become depleted of minerals.nobody wanted to buy a farm that wouldn't produce anything