Question

Which fact is the BEST piece of supporting evidence that overproduction and falling prices was a cause of the Great Depression?

Answer 1

The fact that is the BEST piece of supporting evidence that overproduction and falling prices was a cause of the Great Depression is that in 1920 a bushel of wheat sold for $2.94, in 1929 it sold for $1.00 and by 1932 a bushel sold for .30 cents. Farmers produced more as a result of WWI but as demand went down, they continued to overproduce which led to falling prices.

Answer 2

While all facts are relevant, it is clear under Galbraithinam economics that the price of wheat is a clear indicator of overproduction causing a drop in price. Soon after 1930, the great drought of 1932 put a finish to American farms ability to be profitable. The inability for many Americans to pay to feed their families exacerbated the farming crisis, creating a swirling spiral of declining return.