Explain (suggested length of 2–3 paragraphs) the major causes of the Great Depression (e.g., economic policies, trade concerns, banking practices, international commerce).

A. Major Causes of the Great Depression

The Great Depression (1929–1939) was triggered by a combination of factors that destabilized the global economy. One major cause was the stock market crash of October 1929, which wiped out billions in wealth and shattered investor confidence. The crash was preceded by speculative investments fueled by excessive borrowing (buying on margin), creating a fragile financial bubble. When the bubble burst, banks and businesses failed, leading to widespread unemployment and economic stagnation.

Additionally, flawed economic policies exacerbated the crisis. The Smoot-Hawley Tariff Act of 1930 imposed high taxes on imports, sparking retaliatory tariffs from other nations and reducing international trade. Banking practices also contributed; many banks had insufficient reserves and engaged in risky lending. When banks failed, depositors lost their savings, further reducing consumer spending and deepening the economic downturn. Globally, the interconnectedness of economies, coupled with post-World War I reparations and debt, created a ripple effect that spread the depression worldwide.

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B. New Deal Responses to the Great Depression

The New Deal, introduced by President Franklin D. Roosevelt, aimed to stabilize the economy and provide relief for those affected by the Great Depression. One key effort was the creation of the Civilian Conservation Corps (CCC), which provided jobs for young men in conservation projects like planting trees and building infrastructure. This initiative reduced unemployment while improving public lands.

Another major component was the Social Security Act of 1935, which established a safety net for the elderly, unemployed, and disabled. By providing financial assistance to vulnerable populations, it helped alleviate poverty and ensured economic security. Lastly, the Works Progress Administration (WPA) funded large-scale public works projects, such as building schools and bridges, creating millions of jobs and boosting infrastructure development. Together, these efforts sought to stimulate the economy, restore public confidence, and mitigate the human cost of the depression.

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C. The Rise of Cold War Tensions Post-WWII

Arms Race and Cold War Tensions

The development and use of atomic bombs during World War II initiated an arms race between the United States and the Soviet Union. Both nations sought to outdo each other in nuclear weapons technology, resulting in a dangerous buildup of arms. The threat of mutually assured destruction created an atmosphere of fear and mistrust, heightening Cold War tensions. This rivalry led to significant investments in military advancements and fostered a global sense of insecurity.

Ideological Differences

Cold War tensions were deeply rooted in ideological differences between capitalism, championed by the United States, and communism, led by the Soviet Union. Each side viewed the other’s ideology as a threat to global stability and security. The U.S. promoted democracy and free-market principles, while the Soviet Union pushed for state-controlled economies and a one-party system. This ideological clash was evident in proxy wars, such as the Korean War, where each side sought to expand its influence without direct conflict.

Effects on American Culture and Policies

Domestically, Cold War fears shaped American culture and policies. The Red Scare led to heightened security concerns, with the government implementing measures like loyalty oaths and investigations into suspected communist activities. Organizations such as the House Un-American Activities Committee (HUAC) fueled fears of subversion. These tensions also spurred discrimination, particularly against immigrants and political dissenters, creating an atmosphere of suspicion and repression during the McCarthy era.

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D. Changes Resulting from the Civil Rights Movement

The civil rights movement of the 1950s and 1960s brought profound legislative and cultural changes in the United States. One key legislative achievement was the Civil Rights Act of 1964, which outlawed discrimination based on race, color, religion, sex, or national origin. This act marked a turning point in the fight for equality, ensuring that segregation in public facilities and employment discrimination were prohibited.

Culturally, the movement inspired a shift in societal attitudes toward racial equality. Grassroots activism, exemplified by figures like Martin Luther King Jr., and events such as the March on Washington galvanized public support for civil rights. The movement also laid the groundwork for future advocacy efforts, influencing other social justice campaigns, including the feminist and LGBTQ+ rights movements. These changes emphasized the importance of collective action and set a precedent for addressing systemic inequalities in American society.