The Depression led people to question the role of government in controlling and regulating the economy. true or false
The correct answer and explanation is:
True
The Great Depression, which began in 1929, had profound effects on both the economy and people’s perceptions of government intervention. The stock market crash and subsequent economic collapse led to widespread unemployment, poverty, and suffering. As a result, many people began to question the effectiveness of the laissez-faire economic policies that had dominated the U.S. during the 1920s.
Prior to the Depression, the prevailing belief was that the government should take a hands-off approach to the economy, with limited intervention in business affairs. This philosophy was rooted in classical economic theory, which emphasized the natural balance of markets and believed that government interference would distort economic efficiency. However, the devastating consequences of the Depression, such as massive job losses, bank failures, and industrial stagnation, highlighted the inability of the market to self-correct in times of crisis.
In response to these challenges, President Franklin D. Roosevelt’s New Deal programs marked a significant shift in government policy. The New Deal was a series of reforms, public works programs, and regulatory measures designed to stabilize the economy and provide relief to the American people. The government began to play a more active role in regulating business practices, managing public works projects, and providing social safety nets for the unemployed and the elderly.
This period of increased government intervention in the economy led to a lasting shift in public opinion regarding the role of government. Many people came to view the government as a necessary force to stabilize the economy, ensure fair practices, and protect the welfare of citizens. The Depression thus reshaped attitudes toward economic regulation, laying the foundation for future government policies that would continue to influence economic management.