Economic Depression
Time of extreme poverty, resulted in increased numbers of unemployment. Due to this people were spending less causing more people to lose their jobs.
On Margin
Buying Stocks on credit- people purchasing more than they could afford- paying 10%
Stock market crash of 1929
Began the Great Depression. Resulted from many Americans buying stocks on margin and them panic selling
Calvin Coolidge
President during Roaring Twenties- began what was known as Coolidge’s Prosperity
Herbert Hoover
President during start of Great Depression who took much of the blame. Relied on private charities to recover the economy (laissez faire)
Franklin Delano Roosevelt
President during Great Depression, introduced New Deal, relied on government intervention to help recover the economy
The new deal
FDR’s plan to help Americans through the Great Depression
Bank Holiday
Closing of the banks to stop the panic, give the banks time to recover funds and pass laws like FDIC
Wagner Act
guaranteed workers the right to organize unions and bargain collectively
Bull Market
Economic term that defines a period of increasing stock/ strong market
bear market
economic tern that defines period of decreasing stock/ weak market
Hundred Days
First 100 days of FDR’s pregnancy were Congress passed 15 bills and 77 laws
goals of hundred days
a) Relief of suffering b) recovery of economy c) Reform so this can never happen again
Dust Bowl
The region of the Great Plains where heavy winds blew away topsoil due to severe drought and over farming. Ruined many farmers’ welfare.
Brain trust
group of academic advisers that FDR fathered to assist him during the 1932 presidential campaign. This group helped shape FDR’s New Deal
Fireside Chat
30 radio chats given by the President to inform the public directly, explain his New Deal, and restore their faith in the government.
Bonus Army
Veterans of WW1 who needed a promised income from the government. Hoover’s response was sending the military greatly damaged his populatity
AAA
Agricultural Adjustment Act- paid farmers not to grow products and to get rid of the surplus of animals and crops (decrease oversupply and increase demand)
CCC
Civilian Conservation Corps- Hired unemployed men 18-25 for $1/day to plant trees, develop parks, etc.
WPA
Works Progress Administration- hired people to build, also hired artists,writers, and actors to draw murals and put on plays
FDIC
Federal Deposit Insurance Corporation- created to insure bank account to prevent bank panic
SSA
Social Security Act- created to provide funds for the elderly and retired citizens, everyone pays into it
NRA
National Recovery Act- enforced codes that regulated minimum wages, maximum working hours, and working conditions
TVA
Tennessee Valley Authority- created to generate cheap hydroelectric power which attracted new industries like schools and healthcare facilities
