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Government Fiscal Policies In The 1920s

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The government fiscal policies In the 1920s, made it easier for the wealthy to get even wealthier because they reduced business regulations which allowed the wealthy to keep more of their money. The reduced business regulations and low taxes increased the profits of corporations and made their stocks more valuable. However, the poor and middle-class families couldn't buy products because their wages couldn't afford the products due to the changes in prices. This under-consumption lead to business overproduction and soon caused business profits to drop. Soon, different ways to buy products were introduced, including buying on credit and the installment plan, this became very popular and they encouraged consumers to buy more than they could

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