Question

In this lesson, you learned about the causes of the Great Depression. Some people think that if the government had greater control in regulating the economy, the Great Depression would not have happened. Others disagree. They believe that a free market economy lets consumer choices have the greatest say in the direction of the economy and produces the best outcomes for the most people. Which do you agree with? Explain your answer.

Answer 1

The correct answer to this open question is the following.

Some people think that if the government had greater control in regulating the economy, the Great Depression would not have happened. Others disagree. They believe that a free market economy lets consumer choices have the greatest say in the direction of the economy and produces the best outcomes for the most people. I agree with the first one because if you totally allow the market and people to dictate the flow of the economy, then you have those kinds of consequences. After the consumerism behavior of the "Roaring 1920s," most people bought things on credit. But the lack of some kind of government regulation took things to the extreme and that is when the United States stock market crashed on October 29, 1929, beginning the Great Depression.

I think the best position is a balance between government regulation is special or extreme conditions and letting the free market dictate the economy.