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How did consumers weaken the economy in the late 1920s?

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5 votes
Consumers brought too many goods they could not afford
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User Darkryder
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Consumers were continually buying items on credit as well as taking out loans from the bank to play the stock market. When the stock market crashed in 1929, people were decimated by their financial losses because they were unable to pay back the banks, which caused a bank failure, and could not pay off the items they bought. This caused a nationwide panic and led to the foreclosure of many homes and the unemployment of many others. This triggered the Great Depression.
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User Pranay Aryal
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