Economic complications in the United States after World War I included


low employment rates because of returning soldiers

low family incomes because women could no longer work

overproduction of consumer goods

underproduction of consumer goods

Verified Answer :

the overproduction of consumer goods

After WWI the United States suffered an unprecedented transformation. Economically and socially speaking, the nation reached levels never ever achieved. During the 1920s the nation’s total wealth almost doubled and workers enjoyed a 26 percent increase in income.

However, this economical growth, resulted from a highly deregulation of the market allowed the overproduction of consumer goods and industrial products. Still, the population's consumption capacity did not absorb this growth, generating large inventories of products. With the decrease in consumption, the productive sector began to invest and produce less, offsetting its deficits with the dismissal of employees.