How the overproduction of goods in the 1920s affected consumer prices, and in turn, the economy?

Question

History

Gabrielle Carpenter

10 June, 02:43

How the overproduction of goods in the 1920s affected consumer prices, and in turn, the economy?

+1

Answers (1)

Know the Answer?

Monica Kaiser · Answer 1

Consumer demand for these products decreased because everyone already had what they needed from these companies. This ended up causing prices to fall which, in turn, led to the economy slowing down. This coupled with bank policies led to a bust in the economy that lasted the better part of an entire decade.