How did productivity outpace consumption Why were troubles with the economy difficult to detect What impact did this have on the economy What were the warning signs that a depression was imminent?

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2026-03-30 14:30

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Productivity outpaced consumption due to advancements in technology and efficiency, allowing businesses to produce more goods than consumers were willing or able to buy. Economic troubles were difficult to detect because corporate profits remained high, and Stock Market investments continued to rise, masking underlying weaknesses such as overproduction and rising debt levels. This disconnect led to an economic imbalance, eventually contributing to the stock market crash and the Great Depression. Warning signs included increased consumer debt, reduced consumer spending, and growing inventories, indicating that demand was not keeping pace with supply.

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