The Great Depression caused a lot of hardships for people throughout the world. There was a lack of employment, a

lack of government assistance, and inflation was extremely high. What types of political thinking resulted from these

hardships?

A) Democracy and capitalism

B) Theocracy and monarchy

C) Fascism and militarism

D) Communism and socialism

A) Democracy and capitalism

Explanation:

The Great Depression of the 1930s was the largest recession in history and its causes were overproduction of goods and the expansion of unbridled credit by banks. The Great Depression caused the economic indicators to collapse. Inflation has soared, unemployment has risen at rates never seen before, and the American population has seen its income decline sharply.

Faced with the dire scenario, the US government launched the New Deal plan, which promoted a social apparatus for Americans, while promoting incentives for the economy to recover. In other words, the Great Depression, which was the result of capitalism, was resolved through improvements in the capitalist system itself, such as regulations and the fight against inequalities. There was also the strengthening of the democratic mechanisms of the state. The government acted in concert with the needs of the productive, financial, agricultural and social sectors. For example, there was a general need for a welfare system that was implemented, that is, a democratic achievement.

A) Democracy and Capitalism