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What were some of the new goods that people purchased in the 1920s?
2. What had happened in many of these businesses by 1929?
3. What other sector of the economy was plagued by overproduction in the 1920s?
The rapid economic growth after World War I had caused businesses to expand. Better technology along with economic prosperity meant that consumers could purchase many new goods like cars, appliances, and radios. Producers like Ford Motor Company, RCA, and Motorola produced goods at a rapid pace. By 1929, these businesses had produced more goods than people could buy. Warehouses were filled with cars, radios, and other goods that people were not buying.
Additionally, farmers had also overproduced their crops. Better farming technology and decreased demand following World War I meant that farmers were producing too many crops, thus decreasing their prices.