Question

During the 1920s how did overpopulation play a role in causing the great depression?

1. There were not enough products to satisfy consumer needs.
2. High tariffs kept goods from being sold to foreign countries.
3. There were not enough consumers to buy the excess goods.
4. It kept too many people employed longer than necessary

Answer 1

The correct answer is 3. During the 1920s, there were not enough consumers to buy the excess goods, specifically in the real estate market. The construction of houses during the 20s exceeded the population growth by 25%.

To make matters worse, a large part of the population was unemployed. This meant that even fewer people could buy the goods that were produced in the country. In 1925 there were twelve million unemployed people in the United States, who constituted 10% of the population.