WGU C121 Task 4 | Passed on First Attempt |
Update | Complete Solution
A.
There were many factors leading up to the Great Depression in America. One factor was the
increase in American consumerism. (Norton, 2015) Consumerism early on after the war led to
increased productions, more disposable income, and mass production of many items that
Americans wished to purchase. Unfortunately, this mass spending consumerism could not last.
As less Americans were buying items the factories were forced to create less. This led to
Americans getting laid off which in turn meant there was less disposable income and spending
which led to more layoffs.
Another cause of the Great Depressions was post World War I money lending to Europe. At
the conclusion of World War I Germany was required to pay reparations to other European
nations. Germany took loans from America to pay their reparations to the other nations and the
other nations in turn took their reparation money to pay back the debts they owed to the
United States. However, less wealthy Americans were loaning money to Europe because the
Stock Market became a more lucrative investment for them. This caused a banking crash in
America because America was no longer receiving as many debt repayments from European
nations.
American banks were also engaging in risky loan practices. The banks in America offered
low interest loans based on speculation. Many loans began to become defaulted on as
economic issues worsened because companies had lied about their assets and abilities to repay
the loans. As more loans entered default it caused the American banking system to become
very unstable and on the verge of collapse.
Lastly, a major cause of the Great Depression was risky stock investments. Many wealthy
Americans were buying large amounts of stock on margin. This meant that they were only
paying a fraction of the cost of the stocks instead of the full amount. Then when they owned
the margin stocks, they used them to invest in more stocks on margin. When stockholders
began to sell margin stocks in excess the brokers demanded full payment for the margin stock.
When they were not receiving full payment more investors began to pull their margin stock in
large numbers. This resulted in the crashing of the stock market.
B.
During the Great Depression, many new laws were enacted through the new Deal to
attempt to alleviate some of the economic turmoil facing Americans. One major economic
, impact that was created was the Social Security Act. The act created a system for
unemployment compensation. (Norton, 2015) The Social Security Act also created the Aid to
Families with Dependent Children (ADFC.) This portion of the Act guaranteed money to families
with dependent children that were missing a parental figure in the home who was either
incapacitated, deceased, or otherwise absent from the home. This act also guaranteed federal
pensions for the elderly. Unfortunately, the Act did have flaws and several professions (public
service jobs primarily,) and minorities were excluded from receiving pensions.
As a part of the New Deal the government also passed the Agricultual Adjustment Act
(AAC). This act was one of the most successful pieces of legislation. Some aspects of the act
remain today. As a result of the AAC the government offered subsidies to farmers who would
agree to plant less cash crops. By planting less cash crops the cost of the crops would begin to
rise due to the market not being oversaturated with the cash crops. These subsidies also
attributed to the rising prices of farms. Due to the subsidies some farmers, particularly in the
West, grew some wealth and the subsidies accounted for until ¾ of their incomes.
The New Deal also led to the creation of the Public Works Administration (PWA.) The PWA
was responsible for strengthening the nation’s infrastructure. Jobs in construction and building
were funded with public sources to create many new jobs. The men employed through the
PWA were responsible for the building of dams, bridges, hospitals, and schools. The creation of
the PWA created many American jobs to reduce the unemployment and help stimulate the
economy with disposable income. In addition, the creation of the buildings bettered the lives of
the American public by creating more places for them to utilize.
C1.
During World War II the United States began a secret mission, the Manhattan Project, to
create a powerful atomic bomb. This project cost $2 billion but was a success. After the United
States created the atomic bomb and Japan refused to surrender, the United States dropped an
atomic bomb on Hiroshima, Japan forcing an end to World War II. At the end of the war the
Soviet Union felt that the United States was attempting to gain global power through “atomic
diplomacy” and the monopolizing of nuclear weapons. (Norton, 2015) International powers
attempted to have the United States hand over their bombs, however, the United States
refused to until the Soviet Union ended their attempt to create one. The Soviet Union refused
to end their attempts which escalated the arms race.
The Soviet Union was successful in creating their own atomic bombs, prompting the United
States to begin working on a more powerful bomb, a hydrogen bomb. During the arms race the
United States also began to stockpile nuclear weapons, from 1,200 warheads to 22,229 at the
end of the stockpiling. The United States found their stockpile justifiable because they felt they
needed to be prepared in case of “brinkmanship,” the United States intended to obliterate a
communist country through nuclear means if they engaged in acts of aggression against other
countries. In response to the stockpiling of the United States, the Soviet Union created and
tested a hydrogen bomb and increased their country’s intelligence.
Update | Complete Solution
A.
There were many factors leading up to the Great Depression in America. One factor was the
increase in American consumerism. (Norton, 2015) Consumerism early on after the war led to
increased productions, more disposable income, and mass production of many items that
Americans wished to purchase. Unfortunately, this mass spending consumerism could not last.
As less Americans were buying items the factories were forced to create less. This led to
Americans getting laid off which in turn meant there was less disposable income and spending
which led to more layoffs.
Another cause of the Great Depressions was post World War I money lending to Europe. At
the conclusion of World War I Germany was required to pay reparations to other European
nations. Germany took loans from America to pay their reparations to the other nations and the
other nations in turn took their reparation money to pay back the debts they owed to the
United States. However, less wealthy Americans were loaning money to Europe because the
Stock Market became a more lucrative investment for them. This caused a banking crash in
America because America was no longer receiving as many debt repayments from European
nations.
American banks were also engaging in risky loan practices. The banks in America offered
low interest loans based on speculation. Many loans began to become defaulted on as
economic issues worsened because companies had lied about their assets and abilities to repay
the loans. As more loans entered default it caused the American banking system to become
very unstable and on the verge of collapse.
Lastly, a major cause of the Great Depression was risky stock investments. Many wealthy
Americans were buying large amounts of stock on margin. This meant that they were only
paying a fraction of the cost of the stocks instead of the full amount. Then when they owned
the margin stocks, they used them to invest in more stocks on margin. When stockholders
began to sell margin stocks in excess the brokers demanded full payment for the margin stock.
When they were not receiving full payment more investors began to pull their margin stock in
large numbers. This resulted in the crashing of the stock market.
B.
During the Great Depression, many new laws were enacted through the new Deal to
attempt to alleviate some of the economic turmoil facing Americans. One major economic
, impact that was created was the Social Security Act. The act created a system for
unemployment compensation. (Norton, 2015) The Social Security Act also created the Aid to
Families with Dependent Children (ADFC.) This portion of the Act guaranteed money to families
with dependent children that were missing a parental figure in the home who was either
incapacitated, deceased, or otherwise absent from the home. This act also guaranteed federal
pensions for the elderly. Unfortunately, the Act did have flaws and several professions (public
service jobs primarily,) and minorities were excluded from receiving pensions.
As a part of the New Deal the government also passed the Agricultual Adjustment Act
(AAC). This act was one of the most successful pieces of legislation. Some aspects of the act
remain today. As a result of the AAC the government offered subsidies to farmers who would
agree to plant less cash crops. By planting less cash crops the cost of the crops would begin to
rise due to the market not being oversaturated with the cash crops. These subsidies also
attributed to the rising prices of farms. Due to the subsidies some farmers, particularly in the
West, grew some wealth and the subsidies accounted for until ¾ of their incomes.
The New Deal also led to the creation of the Public Works Administration (PWA.) The PWA
was responsible for strengthening the nation’s infrastructure. Jobs in construction and building
were funded with public sources to create many new jobs. The men employed through the
PWA were responsible for the building of dams, bridges, hospitals, and schools. The creation of
the PWA created many American jobs to reduce the unemployment and help stimulate the
economy with disposable income. In addition, the creation of the buildings bettered the lives of
the American public by creating more places for them to utilize.
C1.
During World War II the United States began a secret mission, the Manhattan Project, to
create a powerful atomic bomb. This project cost $2 billion but was a success. After the United
States created the atomic bomb and Japan refused to surrender, the United States dropped an
atomic bomb on Hiroshima, Japan forcing an end to World War II. At the end of the war the
Soviet Union felt that the United States was attempting to gain global power through “atomic
diplomacy” and the monopolizing of nuclear weapons. (Norton, 2015) International powers
attempted to have the United States hand over their bombs, however, the United States
refused to until the Soviet Union ended their attempt to create one. The Soviet Union refused
to end their attempts which escalated the arms race.
The Soviet Union was successful in creating their own atomic bombs, prompting the United
States to begin working on a more powerful bomb, a hydrogen bomb. During the arms race the
United States also began to stockpile nuclear weapons, from 1,200 warheads to 22,229 at the
end of the stockpiling. The United States found their stockpile justifiable because they felt they
needed to be prepared in case of “brinkmanship,” the United States intended to obliterate a
communist country through nuclear means if they engaged in acts of aggression against other
countries. In response to the stockpiling of the United States, the Soviet Union created and
tested a hydrogen bomb and increased their country’s intelligence.
