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.
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).
WHY DID STUFF SLOW DOWN IN THE GREAT DEPRESSION? because there wasn't water then
In October of 1929 with the crash of the stock market.
The recession of 2008 and the Great Depression of the 1930s have similar beginnings. Financial meltdowns caused a reduction in consumer spending which lead to unemployment in great numbers.
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.
High demand and a shortage of produced goods.
prices of goods increased
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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).
WHY DID STUFF SLOW DOWN IN THE GREAT DEPRESSION? because there wasn't water then
The war ended the Great Depression
In October of 1929 with the crash of the stock market.
The recession of 2008 and the Great Depression of the 1930s have similar beginnings. Financial meltdowns caused a reduction in consumer spending which lead to unemployment in great numbers.
October 29, 1929
During the Great Depression, there was overproduction of goods from the factories. Due to the stock market crashing, people began to cut back on what they were buying to save their money. Soon after this, the factories starting exporting less. However, there was still too much product out for the people to consume, so there was an underconsumption of goods, and the factories started losing money because no one would buy the products.
There were many aspects to the economy of the 1920s that led to one of the most crucial causes of the Great Depression - the stock market crash of 1929. In the early 1920s, consumer spending had reached an all-time high in the United States. American companies were mass-producing goods, and consumers were buying.