Introduction Other than the 2007-2008 financial crises, the great depression is a memorable financial and economic crisis in the American history. Numerous structural failings and economic imbalances resulted in the stock market crash of 1929 as well as the Great Depression. People wanted to make quick money from the stock market which offered high expectations from the new gold rush. Economists and historians share different theories on the major causes of the great depression and the fall of the stock market. Historians blame economies of scale as a major cause of great depression. Historians of U.S. business generally argue that corporate managers preferred policies that favored long-term stability and growth of their enterprises to those that maximized current profits. Wrong economic policies undertaken by the U.S during that particular time can be blamed for the great depression. Among the many causes of the stock market crash of 1929 and the Great Depression, the paper has explored economies of scale as a major cause. The essay discuses how the economies of scale as discussed by Daniel M. G. Raffin’s article, “Making Cars and Making Money” might have contributed to the stock market crash of 1929 and the subsequent depression. It also explores advertising strategies explored by William Leach and Roland Marchand. To achieve the essay’s objective, the relationship between overproduction, under-consumption, credit, banking crisis and international trade with respect to the Great Depression has been explored. Mass production and other crisis During the 1920s, industries like the automobile industry witnessed a great change which was as a result of new production techniques. During this era, new production techniques enabled mass production that was characterized by economies of scale (Raff 725). General Motors and Ford dominated the industry because of their innovative methods. In addition, it is during this period that mergers were carried out between different industries ranging from grocery to automobiles. As a result, the process came to be known as the “mergermania”. Mergermania led to over-production, glut in the market, increased layoffs, excessive competition, economic volatility, waste of resources and produced products (Leach 265). Companies produced more than the market demand could afford thus creating a glut. Consequently, firms started to struggle to sell their products but the demand was low which led to wastes and excessive competition. For instance, managers from Steinback and the New Brunswick observed that the excessive competition in the market could only be met through the development of individual purchasing power (Leach 260). The profits generated were disappointing compared to the production costs which had been invested. This precipitated the fall of share prices in the major production firms. Most of the chain stores which had been formed as a result of mergers had been developed through the aid of financial bankers which was against the tradition of family ownership and independence (Leech 260). In addition, the bank investments aid was deployed without determining the credit worthiness of the companies. The only incentive that drov