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Why did people demand not just banking and stock market reform but also new forms of government after the Great
Depression?

State and local governments also increased taxes during the 1930s, with many imposing individual income taxes for the first time. All these tax increases killed incentives for work, investment, and entrepreneurship at a time when they were sorely needed.

Explanation:

As you can see, taxes were also increased or stayed the same which didn’t really help the people. Because of this, they demanded new forms of government.