ABSTRACT
We have seen considerable evidence that market saturation characterized not just the automobile market in the late 1920s, but also a number of domestic appliances, radio, and construction. Decline in these sectors would not only be felt in other goods sectors which supplied their inputs, such as iron, wood, rubber, and glass, but also in the important area of business services. If we accept that limited investment opportunities led to excess savings in the late 1920s, then the rise and decline of the financial services sector can be attributed to the same forces. The existence of inelastic demand can be discerned in sectors other than those listed above; textile producers for example, were unable to expand output by slashing prices.
