The Roaring 20s saw a boom in the US economy as people purchased goods like cars and appliances on newly available credit. However, the widespread use of credit caused economic imbalances. Farms and factories overproduced goods beyond consumer demand. As people had little money to spend due to job losses, demand for goods fell and businesses cut production. The stock market crash of 1929 exacerbated these issues, as people who had bought stocks on margin could not repay their debts, causing banks to fail and depositors to lose savings.

4. Farms and factories overproduced beyond the demand. Overproduction / Reduction in Purchasing People had little or no money to spend. Demand for goods fell. Businesses cut production Workers suffered from wage cuts and lay offs.

5. A farm is being sold at a foreclosure sale in Iowa. Military police were on hand to keep farmers from disrupting the auction. ca. 1935.