Overproduction And Its Weakness

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 hurt the citizens
that lived in the USA....

Overproduction And Its Weakness

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