The Great Depression & New Deal

Rugged Individualism

Herbert Hoover's belief that people should succeed through their own efforts rather than relying on government aid. ACE: Hoover’s adherence to rugged individualism delayed direct federal relief to the poor, which many Americans felt was an inadequate response to the scale of the Great Depression.

Business Cycle

The natural fluctuations of an economy between periods of expansion (growth) and recession (decline). ACE: Economists who believed in the business cycle argued that the government should let the Depression run its course, but the severity of the 1930s collapse suggested the cycle was broken.

Bonus Army

A group of WWI veterans who marched on Washington D.C. in 1932 demanding early payment of their promised service bonuses. ACE: The violent removal of the Bonus Army by federal troops severely damaged President Hoover’s reputation and helped ensure Franklin D. Roosevelt's victory in 1932.

Bank Holiday

FDR’s first act as President, closing all banks for several days to stop bank runs and inspect their financial health. ACE: The Bank Holiday restored public confidence in the financial system by ensuring that only solvent banks were allowed to reopen for business.

FDIC

(Federal Deposit Insurance Corporation) A New Deal agency that insures individual bank deposits to protect consumers. Bank Insurance ACE: By creating the FDIC, the federal government guaranteed that depositors would not lose their money if a bank failed, effectively ending the era of bank runs.

AAA

The AAA (Agricultural Adjustment Act) paid farmers to cut production. ACE: The federal government paid farmers subsidies to leave portions of their land unplanted and destroy excess crops or livestock in order to raise the prices of agriculture related goods to keep farmers from going out of buisness

Dust Bowl

An environmental disaster in the Great Plains caused by severe drought and poor farming practices. ACE: The Dust Bowl forced thousands of "Okies" to migrate to California, creating a massive internal refugee crisis during the height of the Great Depression.

WPB

the WPB (War Production Board) was a government agency established by President Franklin D. Roosevelt. Its main function was to oversee the conversion of peacetime industry to wartime production during World War II, ensuring that the armed forces had the necessary supplies and materials.