Overproduction was a cause of the Great Depression. It had also caused the mass consumption in the 1920’s, but it made it to where demand couldn’t keep up with production. Many people had financed purchases of products with loans and credit, so after the Wall Street Crash it became almost impossible to pay off these debts. Overproduction caused an agricultural economic crisis too. Before overproduction started, farmers and factories were producing a lot of products and goods to keep up with demand. They were also helping supply allies in Europe with food. At this time, farmers were trading their animals for tractors. But, American farmers were growing more food than the people could consume with lower prices and without increasing demand. Many of them went into debt. As demand dropped and the supply increased, prices for products decreased. Thus, unemployment rates rose and food production rates fell.
World War One left countries in debt. For example, Europe had a huge debt, mainly owed to the U.S. The United States wanted these countries to pay their debt, since the U.S. was going into the Great Depression. European economies also needed money and with the U.S. not supplying them money, demanding Europe to pay its debt, and raising tariffs on imports to an all-time high, which all but ended world trade at a time when trade and economic stimulus was needed the most, they could not survive. European economies collapsed; unemployment rates rose, products were overproduced, value fell, and deflation, a decrease in the price level of goods and services, arose. This pattern spread to much of the world.
The causes of the Great Depression are the Stock Market Crash, overproduction, and the aftermath of World War One. The Stock Market Crash is the main cause because it all started with the crash. When the crash happened, the Great Depression started with everyone losing money. The other causes are pretty huge too, but they only added on to the effects of the Stock Market Crash. Therefore, the crash is the main cause of the Great Depression.
History.com Editors. “Great Depression History.” History.com, A&E Television Networks, 29 Oct. 2009, .
History.com Editors. “Stock Market Crash of 1929.” History.com, A&E Television Networks, 10 May 2010, .
“Causes of the Great Depression.” History Learning, 2015,
Editors, Encyclopaedia Britannica. “Stock Market Crash of 1929.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 2020, .