How did overproduction contribute the start of the Great Depression?

Question

Imani Dougherty

History

26 June, 23:38

How did overproduction contribute the start of the Great Depression?

+4

Answers (2)

Know the Answer?

Jonathon Rich · Answer 1

Factories and Farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off.

Baird · Answer 2

Answer: It was because yes like the guy before me said everyone was overproducing before they could buy their resources or products needed, this caused prices to drop, factories and jobs started to shut down, and employees of these jobs were fired because the business could not run.

Explanation: This could also be described as Black Tuesday, The day October 29, 1929. On this date, share prices on the New York Stock Exchange completely collapsed, becoming a pivotal factor in the emergence of the Great Depression.