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Due to overproduction, the demand for those commodities decreased and there was surplus of product which had nothing to do but rot.Also industries suffered from great loss naturally because their sales brought less money than the amount they had spent in investments.This was not the problem of one but industries all over the US.And ultimately all this snowballed into the'Great Depression'.

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Q: What is overproduction and how did it affect factories in the 1920?
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Related questions

Was prosperity of the 1920's an illusion?

Yes. it was an illusion created by industrial and agricultural overproduction.


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