Final answer:
The Great Depression significantly shifted American's goals and expectations, creating lasting psychological and social effects, changing economic theories and influencing modern policies.
Step-by-step explanation:
The Great Depression indeed changed people's goals and expectations. During this period of hardship, the American public encountered severe economic, psychological, and social challenges. Many individuals had to abandon their aspirations for higher education, postpone marriage, and raise families under financial strain.
Moreover, people developed a culture of saving and community support out of sheer necessity. The psychological impact of the Great Depression provoked a marked rise in the self-destruction rate and widespread deferment of personal and professional plans.
Economically, according to Keynes in 'The General Theory of Employment, Interest, and Money', the Depression was not a result of diminished capacity to supply goods and services, but rather a result of insufficient demand leading to high unemployment and under-utilized resources. This pivotal insight would eventually shape modern economic theories and government policies.
The challenges of the Great Depression led to a stronger sense of unity among Americans, promoting the ethos of sharing and community support that can be seen echoed in current day attitudes toward social welfare and economic policies.