Question

Was the psychological stresses or the economic problems the more impactful element of the Great Depression on the United States and how did the nation attempt to address that concern? (please answer both parts)

Answer 1

The Great Depression of 1929 devastated the US Economy. Half of all the banks failed. Unemployment rose to 25% and homelessness increased. Housing prices plummeted 30%, international trade collapsed by 65% and prices fell by 10% per year.

One of the most salient factors linking economic recession to psychological distress is unemployment. Job loss has a powerful negative effect on psychological well-being. Those who lose their jobs tend to report increased anxiety, depression and somatization.

Both of the effects were severe in their own way. The superorisup of one over the other couldn't be established. This is because the economic crisis caused by the Great Depression was the main reason for psychological stress among the masses.

The United States since then has installed New deal programs which safeguards the country and make it less likely that the Depression could happen again.