The Great Depression
THEMATIC FOCUS Work, Exchange, and Technology (WXT)
The interplay between markets, private enterprise, labor, technology, and
government policy shape the American economy. In turn, economic activity shapes
society and government policy and drives technological innovation.
Unit 7: Learning Objective J
Explain the causes of the Great Depression and its effects on the economy
The United States continued its transition from a rural, agricultural economy to an urban, industrial economy led by large companies.
Episodes of credit and market instability in the early 20th century, in particular the Great Depression, led to calls for a stronger financial regulatory system.
During the 1930s, policymakers responded to the mass unemployment and social upheavals of the Great Depression by transforming the U.S. into a limited welfare state, redefining the goals and ideas of modern American liberalism.
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