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.
Why was there an overproduction of consumer goods during the Great Depression?
People could afford to buy as many goods during the depression, and thus there was a much lower demand in relation to the supply of goods that was provided. This led to an overproduction of goods--too many were produced in relation to the amount that was demanded. ...
Asked in The Great Depression
How did underconsumption affect the Great Depression?
idk. 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? ...
What did the US do to stop the Great Depression?
Franklin Roosevelt Made the New Deal to help the Great Depression to ease out. The Americans cut back on products that was causing overproduction to their company and causing them to raise their cost of items they sold to customers. ...
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). ...
What were some causes of the Great Depression in Canada?
Some causes of the Great Depression was the stock market crash (black tuesday), the dependance on the sale of exports, people being overly optimistic about the future, dependence on credit, overproduction & taxes, and the drought. ...
Asked in Wall Street
Did the wall street crash cause the Great Depression?
no there were many other long term cause which helped cause the great depression. the wall street crash was a cataylst that sped up the depression. if the wall street crash never happened the long term cause would have cause the depression on their own eg overproduction, tariffs etc ...
What two things were instrumental in causing many farms to fail during the onset of the Great Depression?
Overproduction is one thing that caused many farms to fail during the Great Depression. Another thing that caused them to fail was the concept of power farming, which was not needed. ...
How did overproduction effect the depression?
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. ...
Asked in The Great Depression
How did overproduction came to have an affect on the great depression?
farms cost less because the soil had become depleted of minerals.nobody wanted to buy a farm that wouldn't produce anything ...
Why were farm families hit particularly hard by the Great Depression?
It's because they didn't benefit from the economic boom, and were always in depression, and they were overproducing crops and since many were unemployed, they couldn't buy anything, OVERPRODUCTION and UNDER CONSUMPTION. ...
What two developments of the 1920s are considered underlying causes of the 1930s depression?
Overproduction & Excessive Speculation
Asked in Franklin D. Roosevelt
A major part of Franklin D. Roosevelt's New Deal was?
Production controls were put in place to curb overproduction, which had been part of the problems that led to the Great Depression. This was part of the New Deal's more "hands on" approach to ending the Depression. ...
Asked in History, Politics & Society, History of the United States, Australia in WW2, The Great Depression
What were six causes of the Great Depression?
What led to the Great Depression was the lack of consumer demand, which caused overproduction. When people stopped buying things, the economy took a further downturn in the US and worldwide. Causes: Supply increased and Demand decreased causing a slowing of cash flow Stock market value dropped significantly ...
What effect did automation have on the Great Depression?
What did the Great Depression effect? What was the effect of the Great Depression? ...