Question

What were some of the weakness of the economy in the 1920s

Answer 1

The weaknesses of the economy in the 1920s included overproduction, poor income distribution, agricultural struggles, loss of consumer purchasing power, bank failures, and unemployment.

Step-by-step explanation:

The weakness of the economy in the 1920s can be attributed to several factors:

1. Overproduction: Industries experienced trouble due to overproduction, which resulted in key basic industries barely making a profit.
2. Poor income distribution: The vast majority of Americans had limited savings and controlled very little wealth, leading to an unequal distribution of income and a lack of new buyers in the market.
3. Agricultural struggles: Farmers suffered the most in the 1920s, as attempts to boost profits through overproduction and lack of federal price supports failed, leading to plummeting prices and the failure of many rural banks.
4. Loss of consumer purchasing power: Rising prices, stagnant wages, and unbalanced income led to a decline in consumer buying power, preventing many Americans from fully participating in the economic advances of the decade.
5. Bank failures and unemployment: The decline in the economy led to bank failures, near-collapse of the banking system, and massive unemployment. This further eroded consumer demand and prevented economic recovery.

These weaknesses ultimately led to the Great Depression.

Answer 2

Unequal distribution of wealth, Farming problems, Decline in old industries, Trade problems, Stock market speculation, lack of regulation, The extent of the Wall Street Crash, and International debt.