What role did overproduction play in the causes of the Great Depression?

Overproduction was a significant contributing factor to the onset of the Great Depression, primarily because it caused a surplus of goods that could not be sold. In the 1920s, industries produced more products than consumers could buy, which led to a buildup of unsold inventory. As manufacturers and retailers found themselves with excess stock, they began to reduce prices, which, in turn, harmed profits and led to layoffs and decreased wages. This reduction in consumer income further exacerbated the situation, leading to even less spending and a downward spiral in economic activity.

The other aspects related to international trade, job growth, and consumer confidence do not accurately reflect the reality of the economic environment at the time. Instead of stimulating growth, the overproduction crisis instigated a contraction in the economy as businesses struggled with dwindling sales and the resultant decline in consumer demand.