Cause And Effect Of The Depression

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4. Recognizing Cause and Effect In your opinion, what was the greatest single effect of the Depression on the United States? Support your answer. The great depression was one of the most frightening and influential events to ever befall the United States of America. It had numerous effects on America and other countries and the vast majority of these problems are still affecting citizens today. However, the most influential effect that has lasted the longest and had the most impact on the American society is the psychological effect. Americans have become insecure and scared to use banks or invest in the stock market. Also the vast unemployment rate left people feeling inadequate and insufficient to help their country. If it was not for the new deal plan and world war two America could have been completely destroyed as a nation. Although it may seem like we have completely recovered from the effects of it, they are still evident in everyday life. The government has created safety nets with banks insuring people’s money up to a certain amount. This is so that everyday citizen will put their money into the bank and so America can actually function. However, many still do not believe that these safety nets will work and all that will happen is a mass amount of inflation. The effects of the great depression have no only affected those who were alive in those times but also to their children who have learned from them. Therefore, without a doubt the psychological effect of the great depression was the single biggest effect on America and American

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