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Unformatted text preview: American farms made large amounts of goods during the prosperity before the Depression. The prices of goods continued to soar but the wages stayed the same. With people not having enough money to purchase these goods they stopped buying them. Normally the producers would slow production but instead they continued to produce the same amounts. Eventually this caught up to the producers of goods so there only way to cut back was to lay off employees. The laid off employees only made the market worse cause they also had no money to purchase goods which cause less sales of goods and more layoffs. When it was all said and done some 25% of the population was unemployed. Reference: Ohanian, L. E. (2009). WHy Did The Great Depression Last So Long? . Retrieved from http://www.forbes.com/2009/04/30/1930s-labor-wages-business-ohanian.html...
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- Spring '11