How did the shrinking economy lead to increased layoffs of workers in The Great Depression?

Question

Asher Morris

History

2 November, 00:19

How did the shrinking economy lead to increased layoffs of workers in The Great Depression?

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Answers (2)

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Frankie Owen · Answer 1

Since the economy shrunk, business owners didn't have enough money to pay their workers, and since they didn't sell much, they didn't need workers. Since many people didn't have a job because of the layoffs, they didn't have money to go buy things. It became a cycle.

Reina · Answer 2

The shrinking of the economy lowered the profit after selling goods and it wouldn't make sense not to lay off workers