Essay: #1 Overproduction And Its Weakness

Essay: #1 Overproduction and its Weakness

There were many problems that occurred as soon as WWI ended. Such as

overproduction.

Overproduction was going on all through the war, and it did not stop as soon as

the war came to an end. The reason overproduction came into effect in the first place,

was because america had to feed the soldiers and the allies, therefore, the goverment

constantly pushed farmers to grow more crops.

When the war was over, instead of decreasing the crop amount, farmers grew the

same number of crops. Not as many people were in America, therefore, less people

bought less amounts of food. In order for people to buy more food, the goverment

believed that if the prices plummeted, the sales would increase, unfortunately, it did not

happen that way.

Overproduction not only hurt the farmers, but it also hurt the rest of the economy.

Since the food was not selling well, the stores began to order less food from the farmers.

Since the farmers were not making quite as much money, they had to do either of the three

following things: A) Lay off workers

B) Reduce their pay

C) Cut down on maintenance of machinery.

If any of those possibilities were done, then the workers would not have extra spending

money. Therefore, they would not be able to go to the store and buy as much food as

necessary, therefore, the gradual domino effect continued.

Overproduction not only hurt the manufaturers but it also greatly hu...

Essay: #1 Overproduction And Its Weakness

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