Causes of the Great Depression visual hexagon activity jives
At least in part, the Great Depression was caused by underlying weaknesses andimbalances within the U.S. economy that had been obscured by the boom psychology andspeculative euphoria of the 1920s. The Depression exposed those weaknesses, as it did theinability of the nation's political and financial institutions to cope with the viciousdownward economic cycle that had set in by 1930. Prior to the Great Depression,governments traditionally took little or no action in times of business downturn, relyinginstead on impersonal market forces to achieve the necessary economic correction. Butmarket forces alone proved unable to achieve the desired recovery in the early years ofthe Great Depression, and this painful discovery eventually inspired some fundamentalchanges in the United States' economic structure. After the Great Depression, governmentaction, whether in the form of taxation, industrial regulation, public works, socialinsurance, social-welfare services, or deficit spending, came to assume a principal rolein ensuring economic stability in most industrial nations with market economies.