History 11: The Great Depression

Great Depression

A severe worldwide economic collapse beginning in 1929, caused by stock market speculation, bank failures, overproduction, and worldwide economic instability.

Uneven Distribution of Wealth

A major cause of the Depression where most money was owned by a small group of wealthy Americans while most people had little money or savings.

Speculation

Making risky stock investments to try to earn fast profit; contributed to the stock market crash of 1929.

Credit

Borrowing money to buy goods; when people couldn't repay loans, businesses and banks failed.

Margin Buying

Buying stocks with borrowed money; when the market crashed, people couldn't repay loans, leading to bank failures.

Dust Bowl

Severe drought and over-farming on the Great Plains that created dust storms and forced many farmers to leave the region.

Capitalism

An economic system where private businesses compete for profit with limited government control.

Communism

An economic system where the government owns all property and controls the economy; conservative critics claimed the New Deal was moving toward this.

Laissez-Faire

A belief that the government should not interfere in business or the economy.

Free Market

Businesses operate based on supply and demand with little government involvement.

Inflation

A general rise in prices as money loses value.

1932 Election

Franklin D. Roosevelt defeated Herbert Hoover, marking a major shift toward government action to help people through the Depression.

Herbert Hoover

President at the start of the Depression who believed in limited government relief; many blamed him for not doing enough.

Franklin D. Roosevelt (FDR)

President who created the New Deal and expanded the federal government to help people during the Depression.

New Deal

FDR's series of programs designed to provide relief, recovery, and reform during the Great Depression.

Alphabet Agencies

Nicknamed New Deal programs (CCC, WPA, FDIC, etc.) that created jobs, strengthened banks, and rebuilt infrastructure.

First 100 Days

The beginning of FDR's presidency when he passed a large amount of legislation quickly to stabilize the economy and help Americans.

Relief

Immediate help for suffering Americans through jobs, food, and emergency aid.

Recovery

Actions meant to restart the economy and help it grow again.

Reform

Long-term changes to prevent future depressions, like Social Security and labor laws.

Bank Holiday (1933)

FDR closed all banks and only reopened the healthy ones to restore public confidence.

FDIC (Federal Deposit Insurance Corporation)

Insured bank deposits up to $5,000 so people would trust banks again.

CCC (Civilian Conservation Corps)

Gave jobs to young men (18-25) in conservation projects such as parks, trails, tree planting, and flood control; workers earned $30/month with food and housing.

WPA (Works Progress Administration)

Largest relief program; created millions of jobs building roads, bridges, schools, parks, and funding art and writing projects.

TVA (Tennessee Valley Authority)

Modernized one of the poorest regions in the U.S. by building dams, providing hydroelectric power, and controlling flooding.

AAA (Agricultural Adjustment Act)

Paid farmers NOT to overproduce crops to stop prices from falling; ruled unconstitutional and replaced by the FSA.

SSA (Social Security Administration)

Provided pensions for retirees 65+, unemployment insurance, aid for the disabled, and support for widows and children.

Wagner Act

Protected workers' rights to form unions and strike; strengthened labor protections.

First New Deal

Focused on relief — stabilizing banks, giving jobs, and helping people immediately.

Second New Deal

Focused on reform — long-term programs like Social Security, labor protections, and higher taxes on the wealthy.

American Liberty League

Conservative group that argued the New Deal threatened individual rights, free enterprise, and states' rights; pushed courts to strike it down.

Court Packing

FDR's plan to add more Supreme Court justices for every one over the age 70 so they would support the New Deal; seen as an abuse of power.

Demagogues

Political leaders who gained popularity by appealing to people's prejudices and emotions

Huey Long

New Deal critic who proposed "Share Our Wealth" to heavily tax the rich and give guaranteed income to families; extremely popular and worried FDR.

Fr. Charles Coughlin

Radio priest who attacked banks and the New Deal; gained millions of followers.

Dr. Francis Townsend

Proposed pensions for the elderly; helped push FDR to create Social Security.

Mary McLeod Bethune

African American educator who advised FDR and fought for Black opportunities in the New Deal.

Frances Perkins

First female cabinet member (Secretary of Labor); helped create Social Security and labor protections.

Harry Hopkins

FDR's top advisor who ran major relief programs like the WPA; believed in jobs instead of handouts.

Why minorities felt left out of the New Deal

Many programs allowed discrimination: segregated CCC camps, lower pay, denial of mortgages, exclusion of domestic and farm workers from key laws.

Relief vs Reform vs Recovery

Relief gave immediate help (jobs, food), Recovery helped fix the economy, Reform created long-lasting protections to prevent another Depression.

Worldwide Depression

The economic collapse spread globally — Germany had war reparations and inflation, Britain and France were deep in debt, and the U.S. economy failed from overproduction and speculation.

Social Problems of the Depression

Unemployment, poverty, homelessness, family breakdown, lack of education, and protests like the Bonus Army.

Why the 1932 Election mattered

Showed Americans wanted government help in a crisis; changed expectations for the presidency.

Why "earned benefit" mattered

FDR wanted programs like job creation — not handouts — so Americans kept pride and dignity.