Question

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

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.