Boyce New Deal Depression

Great Depression

A severe worldwide economic downturn beginning in 1929 marked by mass unemployment, bank failures, and economic collapse.

Tariffs and War Debt Policies

High tariffs and unresolved WWI war debts reduced international trade and strained global economies.

Dawes Plan

A U.S. plan where American loans went to Germany, Germany paid reparations to Britain and France, and they repaid war debts to the U.S.

Isolationism

The U.S. policy of avoiding international political and economic involvement after WWI.

Farm Crisis

Overproduction and falling crop prices left farmers deep in debt and facing foreclosures.

Easy Credit

Widespread borrowing that boosted the 1920s economy but caused collapse when borrowers could not repay loans.

Unequal Distribution of Income

Wealth concentrated among the rich, limiting consumer purchasing power.

Superficial Prosperity

Economic growth based largely on borrowing rather than real wealth.

Key Industries Weakness

Railroads, textiles, steel, mining, and lumber saw little or declining profits after WWI.

Consumer Credit Dependence

Many Americans lived beyond their means using installment buying.

1920s Income Inequality

The top 1% saw a 75% income increase while most Americans saw only modest gains.

Standard of Living Gap

Most Americans earned under $2500 per year, barely enough to survive.

Herbert Hoover

Republican president elected in 1928 who favored limited government intervention.

Dow Jones Industrial Average

An index tracking the stock prices of 30 major U.S. companies.

Bull Market

A period of rising stock prices.

Bear Market

A period of falling stock prices.

Buying on Margin

Purchasing stock with borrowed money, paying only a small down payment.

Stock Speculation

Risky buying and selling of stocks to make quick profits.

Stock Market Crash of 1929

A sudden collapse of stock prices that triggered the Great Depression.

Black Tuesday

October 29, 1929, when 16.4 million shares were sold and the market collapsed.

Bank Failures

Thousands of banks closed, wiping out personal savings.

Gross National Product (GNP)

Total value of goods and services produced; fell from $104B to $59B.

Unemployment

Rose from 3% in 1929 to 25% in 1933.

Run on the Banks

Mass withdrawals due to fear banks would collapse.

Global Economic Crisis

Worldwide depression worsened by tariffs and declining trade.

Shantytowns

Makeshift communities of homeless people, often called Hoovervilles.

Soup Kitchens and Bread Lines

Charitable food services for the unemployed.

Dust Bowl

Severe drought and soil erosion that devastated Great Plains farms.

Riding the Rails

Homeless individuals traveling illegally by train to find work.

Hoover’s Rugged Individualism

Belief that people should succeed through self-reliance without government aid.

Hawley-Smoot Tariff

Raised tariffs to nearly 50%, worsening the global depression.

Debt Moratorium

Hoover’s attempt to suspend war debt payments; opposed by France.

Social and Psychological Impact

Increased suicides, mental illness, and family strain during the Depression.

Reconstruction Finance Corporation (RFC)

Government loans to banks and industries to stabilize the economy.

Hoover Dam

Major public works project providing jobs and electricity.

1932 Election

Election between Hoover and Franklin D. Roosevelt during the depths of the Depression.

Franklin D. Roosevelt (FDR)

Democratic president elected in 1932 who led the New Deal.

Eleanor Roosevelt

FDR’s wife and a strong advocate for the poor, women, and minorities.

20th Amendment

Reduced the lame-duck period between election and inauguration.

Relief, Recovery, Reform

The three goals of the New Deal to address the Depression.

First Hundred Days

FDR’s first months in office marked by rapid passage of New Deal legislation.

Bank Holiday

Temporary closure of banks to stop panic and restore confidence.

Emergency Banking Relief Act

Allowed sound banks to reopen under federal supervision.

FDIC

Insured bank deposits up to $5000 to prevent bank runs.

Fireside Chats

FDR’s radio addresses explaining policies and reassuring Americans.

FERA

Provided federal money to states for direct relief like soup kitchens.

PWA

Funded large-scale public construction projects.

CCC

Employed young men in conservation and environmental projects.

TVA

Built dams and provided electricity to the impoverished Tennessee Valley.

NRA

Set industrial codes for wages, hours, and production; later ruled unconstitutional.

Schechter v. U.S.

Supreme Court case that struck down the NRA.

AAA

Paid farmers to reduce production to raise crop prices.

SEC

Regulated the stock market to prevent fraud.

FHA

Insured home loans to stimulate housing construction.

Court-Packing Plan

FDR’s failed attempt to add Supreme Court justices to gain support for New Deal laws.

Second New Deal

Expanded New Deal programs focused on long-term reform and workers’ rights.

WPA

Massive jobs program employing workers, artists, writers, and photographers.

NYA

Provided jobs, education, and recreation for young Americans.

Wagner Act (NLRA)

Guaranteed workers the right to unionize and bargain collectively.

Fair Labor Standards Act

Established minimum wage and maximum work hours.

Social Security Act

Created pensions, unemployment insurance, and welfare programs.

Mary McLeod Bethune

Advocate for African Americans and advisor to FDR.

Native American Reforms

Shift away from forced assimilation toward tribal self-governance.

Great Depression Culture

Movies and radio provided escapism and entertainment.

War of the Worlds Broadcast

Radio drama that caused nationwide panic.

Federal Writers Project

Supported authors like John Steinbeck during the Depression.

Legacies of the New Deal

Established Social Security, minimum wage, FDIC, and expanded federal responsibility.

Deficit Spending

Government spending beyond revenue to stimulate the economy.

New Deal Criticism

Shifted American belief toward expecting government responsibility for economic security.