53.0k views
2 votes
How did problems in the manufacturing industry contribute to growing weaknesses in the U.S. economy during the 1920s?

A. U.S. manufacturers raised prices on goods when there was low demand.
B. U.S. manufacturers cut prices on goods when there was low demand.
C. U.S. manufacturers kept overproducing goods when there was no demand.
D. U.S. manufacturers stopped producing goods when there was no demand.​

1 Answer

3 votes

answer:

C. U.S. manufacturers kept overproducing goods when there was no demand.

During the 1920s, one of the contributing factors to the growing weaknesses in the U.S. economy was that U.S. manufacturers kept overproducing goods even when there was no demand. This led to a significant imbalance between supply and demand in the market.

The 1920s was a period of rapid industrialization and technological advancements in the United States, often referred to as the "Roaring Twenties." Manufacturing industries experienced increased productivity and efficiency, which resulted in a surplus of goods being produced. However, as demand for these goods did not keep pace with production, inventories started to accumulate.

To address the issue of excess inventory, U.S. manufacturers faced the challenge of either cutting prices on goods (option B) or stopping production altogether (option D). However, they often chose to continue producing goods in the hopes that demand would catch up. This decision led to a buildup of inventory and contributed to economic weaknesses in the form of excess supply, declining prices, and a decrease in overall economic activity.

Therefore, option C, U.S. manufacturers kept overproducing goods when there was no demand, best describes the problems in the manufacturing industry that contributed to growing weaknesses in the U.S. economy during the 1920s.

User John Stark
by
7.8k points

No related questions found