IB History of America's - The Great Depression

Business Cycle

The natural fluctuation in the economy primarily driven by shifting demand for durable goods and capital goods.

Installment Buying

A form of excessive credit use where consumers purchase durable goods on credit, promising to pay later.

Trickle Down Economics

An economic policy approach that involves providing tax cuts to businesses and the wealthy.

Keynesian Explanation

An economic theory proposing that the Great Depression was fundamentally caused by a massive fall in total demand.

Federal Reserve

The central banking system of the United States, criticized for its tight monetary policy during the Great Depression.

International Explanation

The theory that the U.S. economic collapse was part of a larger global depression driven by a failing international debt structure.

On-Margin

A speculative method of buying stocks using borrowed money.

Margin Calls

Demands from brokers requiring investors to immediately pay back loans used to purchase stock on margin.

Prohibition

The legal ban on alcohol sales, which was repealed in 1933.

Scottsboro Case

A case in which nine African American teenagers were falsely accused of rape and convicted by all-white juries.

Causes of the Great Depression

Systemic vulnerabilities, including economic overproduction, severe wealth inequality, and excessive reliance on credit.

Hoover’s Reaction to Great Depression

Herbert Hoover's reluctance to provide direct federal aid and support for voluntary measures.

Bonus Army

A protest by World War I veterans demanding early payment of military bonuses, forcibly dispersed by Hoover.

Roosevelt’s Reaction to Great Depression

FDR's New Deal aimed at Relief, Recovery, and Reform through government intervention.

Unemployment Rates

Unemployment peaked at roughly 25% of the civilian workforce in 1933, gradually declining due to New Deal programs.

Smoot Hawley Tariff

The highest tariff in U.S. history, enacted in 1930, which hindered international trade.

Gold Standard

The monetary system requiring the U.S. to be tied to gold, which FDR abandoned in 1933.

Bank Failures

Widespread failures of banks due to defaulted loans, causing mass panic and loss of savings.

Reconstruction Finance Corporation (RFC)

A federal agency established by Hoover to provide loans to troubled banks and businesses.

Agricultural Marketing Act

The first major government program aimed at stabilizing commodity prices through cooperatives.

Critics of the New Deal

Opposition from both conservatives claiming it gave too much power to the government and progressives feeling it didn't go far enough.

Social Security Act of 1935

Legislation establishing a federal welfare system including pensions and unemployment insurance.

NRA (National Recovery Administration)

Agency that sought to stabilize industry through fair practices and minimum standards.

FDIC (Federal Deposit Insurance Corporation)

Established to guarantee bank deposits and restore public confidence in the financial system.

SEC (Securities Exchange Commission)

Regulatory body created to oversee and regulate the stock market.

Wagner Act (National Labor Relations Act of 1935)

Legislation that created the National Labor Relations Board to protect workers' rights to unionize.

WPA (Works Progress Administration)

A massive work relief program for the unemployed to develop public works and provide jobs.

CCC (Civilian Conservation Corps)

Relief program providing jobs for young men in environmental conservation projects.

TVA (Tennessee Valley Authority)

Regional planning initiative to provide electricity and improve economic conditions in the Tennessee Valley.

FERA (Federal Emergency Relief Administration)

Agency created to provide cash grants to states to support local relief efforts.

PWA (Public Works Administration)

Established to fund large-scale public works construction projects.

Bank Holiday

FDR's proclamation closing banks for four days to stabilize the banking system.

AAA (Agricultural Adjustment Act)

Legislation aimed at reducing agricultural surpluses to raise farm prices.

Fair Labor Standards Act

Establishment of a national minimum wage and limitations on child labor.

Alf Landon

Moderate Republican who ran against FDR in the 1936 election.

Calvin Coolidge

1920s Republican President known for supporting business and trickle-down economics.

Dorothea Lange

Documentary photographer known for capturing the struggles of ordinary Americans during the Great Depression.

Douglas MacArthur

U.S. General ordered to disperse the Bonus Army during their protest in Washington D.C.

Eleanor Roosevelt

FDR’s wife, an advocate for women's rights and racial equality.

Frances Perkins

First female cabinet member in U.S. history, instrumental in shaping Social Security.

Francis E. Townsend

Proposed the Townsend Plan to provide monthly pensions for the elderly.

Franklin Delano Roosevelt (FDR)

President who implemented the New Deal to combat the Great Depression.

Huey Long

Populist Senator who proposed radical wealth redistribution through the Share-Our-Wealth Plan.

Herbert Hoover

Republican President blamed for the Great Depression and his response to it.

R.B. Bennett

Conservative Prime Minister of Canada during the Great Depression, noted for unpopular relief policies.

Mackenzie King

Pragmatic politician and Prime Minister of Canada who successfully built Canada's social safety net.

Wheat Pool

Refers to the Canadian Wheat Board, established to stabilize agricultural prices during the Depression.

Dust Bowl

Severe drought that devastated agriculture in Canada's Prairie provinces during the 1930s.

CCF (Saskatchewan)

Democratic socialist political party advocating for nationalization and expanded social services.

Bennett Relief Camps

Military-style camps for unemployed men in Canada, criticized for harsh conditions.

On-to-Ottawa Trek

A protest by relief camp workers demanding better conditions stopped by police, leading to violence.

German Reparation Debts

Unpaid WWI reparations that contributed to the global economic collapse.

Treatment of Immigrants/Minorities

Reflected discrimination and hardship during the Great Depression in Canada.

Tariffs

Protectionist measures that further harmed exports during the Depression.