Hey I am completely lost on these questions, I read the chapter, but still do not get it. I need to know how McCarthyism affected the lives and political thinking of people in the U.S.

2 answers

I think it polarized a lot of folks into camps. McCarthy supporters, mainly Republicans at the time, viewed anyone who didn't agree with them with disdain and suspicion. That caused a backlash in the opposite camp, and we witnessed the birth of The John Birch Republicans on one side, and the Weathermen on the other.
I think it also affected TV News coverage (sensationlism and smears) quite a lot, and if you watch News now, you can find entire newsnetworks dedicated to that.
McCarthyism was responsible for all public school teachers to sign a loyalty oath. McCarthy and his followers also helped ban some noted and gifted entertainers from their professions.