The Economic Disaster Of Overproduction And...

Economic disaster of overproduction and underconsumption created the Great Depression in the 1920s from factors of credit, wages, immigration restriction, under consumption, crippled American financial system, collapse global problems, investing rebuild postwar Europe, and production capabilities that New Deal programs by Theodore Roosevelt established to correct the economy in United States. Overproduction was the lack of economic diversification and lack of infrastructure contributed to underconsumption (Barnes Bowles, 2014). People were buying mass consumption from increase wages (Barnes Bowles, 2014). However, production was much higher than the market could soak up. Credit is given to Americans to increase spending but modern conveniences is limited. It is a period of fashion-ism (Jacobs Paley, 1994). Wages did not increase to balance the demand of credit. People defaulted on loans. Consumption is restricted by laws and regulation of immigration that resulted in manuf acturing issues. Nonessential goods and services became limited by the working class related to business owners. Profits are pocketed for themselves and expanding production by business owners that decrease wage opportunities for workers. Supple rose above demand in the economic disaster (Jacobs Paley, 1994). People believe changes banks would save their invested funds in the stock market. The banks failed from the lack of preparation in economic collapse in the American financial