500
What do most economists agree was one major cause of the Great Depression?
Most economists agree that overproduction was a
key cause of the Depression. Increasingly efficient
machinery greatly sped the production of factory
and farm goods. Most Americans, however, did not
earn enough to buy up the flood of goods they
helped produce. As consumers bought more on the
installment plan, the debt forced some to reduce
their other purchases. As sales slowed, manufacturers
cut production and laid off employees. Jobless
workers had to cut back purchases even more, causing
business activity to spiral downward.