What major economic condition contributed directly to the onset of the Great Depression?

The onset of the Great Depression was significantly influenced by the overproduction of goods. In the 1920s, production capabilities expanded dramatically due to advancements in manufacturing technologies and practices. This led to an abundance of products on the market; however, as production outpaced consumer demand, unsold inventory built up.

Businesses, unable to sell their products, began cutting back on production and laying off workers, which in turn reduced overall consumer spending. As workers lost their jobs and incomes shrank, economic activity slowed even further, creating a vicious cycle. This scenario illustrated how overproduction didn't just lead to temporary surpluses but contributed to widespread unemployment and declining economic stability, which were hallmarks of the Great Depression.

In contrast, other conditions like a decline in agricultural exports and high levels of consumer spending played roles in the economic landscape of the era but were not direct triggers for the severe economic downturn that characterized the Great Depression. Understanding the relationship between overproduction and the subsequent economic consequences highlights the interconnectedness of supply and demand in the economy during that period.