Final answer:
Capitalism indeed changed after the Great Depression, as it demonstrated the need for government intervention to stabilize the economy and protect against future downturns, leading to a shift from laissez-faire policies to Keynesian economics and the New Deal.
Step-by-step explanation:
False. Capitalism underwent significant changes following the Great Depression. The Great Depression underscored the vulnerabilities within a capitalist economy, revealing the need for more substantial government intervention to stabilize markets and prevent future economic downturns.
Renowned economist John Maynard Keynes contributed to the shift in economic thought with his work The General Theory of Employment, Interest, and Money. Keynes argued that the economic crisis of the Depression was not due to a lack of supply or technological regression but rather a lack of demand. As such, Keynes championed policies that would stimulate demand, essentially reshaping capitalist economies with a more active governmental role in managing economic cycles.
These ideas influenced President Franklin D. Roosevelt's New Deal policies, which marked a departure from previous laissez-faire approaches and ushered in an era of unprecedented government intervention in the economy. This included regulatory measures, the establishment of social safety nets, and the promotion of labor rights, fundamentally altering American capitalism.