FDR Reading

Great Depression

The most devastating economic downturn in American history.

FDR

Franklin D. Roosevelt, credited with implementing the New Deal to address the Great Depression.

New Deal

A series of programs and policies enacted by FDR aimed at recovering from the Great Depression.

Henry Morgenthau

FDR's Treasury Secretary who acknowledged the persistent unemployment during the New Deal.

Under-consumption theory

The idea that the Great Depression was caused by a lack of purchasing power among workers.

Misdistribution of wealth

The unequal distribution of wealth, which Roosevelt believed was a cause of economic malaise.

Works Progress Administration (WPA)

A New Deal agency that provided jobs and income for the unemployed through public works projects.

Federal Emergency Relief Administration (FERA)

A New Deal program that provided direct relief to the unemployed.

Regressive tax

A tax that takes a larger percentage from low-income earners than from high-income earners.

Excise tax

A government fee on specific goods manufactured within a country.

Political considerations

Factors related to politics that influence the distribution of federal aid.

Workfare

A system that requires recipients of government assistance to engage in work or job training.

Corporate income

The revenue generated by corporations before taxes are applied.

Tax rate

The percentage at which an individual or corporation is taxed.

IRS

Internal Revenue Service; responsible for tax collection and tax law enforcement in the U.S.

Political weapon

A tactic used to influence political outcomes, in this context, through tax enforcement.

Draconian tax rates

Excessively harsh and severe tax rates aimed particularly at the wealthy.

Mobilization for WWII

The extensive preparation and mobilization of U.S. resources during World War II that contributed to economic recovery.

Progressive philosophy

The belief that government should intervene to ensure equality and provide for citizens' welfare.

Founders' conception of government

The belief among American Founders that government should be limited and emphasize process over results.

Minimum wage laws

Laws setting the lowest legal wage that can be paid to workers, which some argue can lead to higher unemployment.

Social Security

A government program designed to provide financial support to the elderly and disabled, considered financially unsound.

Farm subsidies

Financial support extended to farmers by the government that can lead to increased costs for taxpayers.

Government intervention

The act of the government becoming involved in various aspects of the economy and society.

Electoral prospects

The likelihood of winning an election based on various factors including political support and funding.

Charitable tradition

The historical reliance on local charities and voluntary organizations for social support, without federal involvement.

Economic planning boards

Groups of experts established to guide economic policies and wealth redistribution.