What issue arose during the Great Depression that affected consumer purchasing?

During the Great Depression, overproduction significantly impacted consumer purchasing. This phenomenon occurred because, in the years leading up to the Depression, many industries and farms ramped up production in response to the booming economy of the 1920s. When the market crashed and consumer confidence plummeted, people had less disposable income, leading to a decrease in demand for goods.

As a result, businesses found themselves with an excess supply of products. This oversupply led to falling prices, reduced revenues, and ultimately, many companies had to cut back on production or lay off workers. With rising unemployment and plummeting wages, consumers had even less money to spend, creating a vicious cycle that further depressed demand. Hence, the issue of overproduction was a critical factor that directly affected consumer purchasing power during the Great Depression.