Section 3: The Great Depression and the New Deal

Great Bull Market

The description of the stock market during the 1920s. It was marked by large growth and risky investments.

Buying on margin

Taking loans to invest in the stock market with to multiply losses and gains.

Taking out a loan

Borrowing a large amount of money for a bank, typically for larger purchases

Herbert Hoover

President at the start of Great Depression and followed in Coolidge's way of being inactive, put in place the Smoot-Hawley Act

Hoovervilles

Run down homes where homeless people lived during the Great Depression - name blames Hoover

AAA

Agricultural Adjustment Administration
Paid farmers not to raise crops and livestock in order to increase farm prices

WPA

Works Progress Administration
Helped people get jobs in public projects

Hoover vs FDR

Hoover took a hands off approach for the government and didn't take a lot of steps to solve the problem. Meanwhile, FDR took action and tried to solve the problems through relief, reform, and recovery.

CCC

Civilian Conservation Corps
Hired unemployed young men to work on public service projects

FERA

Federal Emergency Relief Administration
gave immediate relief to the people in the form of payment

Laissez-faire

The idea that the government should take a hands off approach to the government. This method of government was one of the causes of the Great Depression

Using credit

Borrowing money from banks for smaller purchases

Relief

immediate action taken to improve the economy - making jobs

Recovery

restoring economy to its former state

Reform

improving a system to prevent economic issues

Calvin Coolidge

President during Roaring 20s who was very satisfied with the state of America and was inactive in government

Franklin Roosevelt

Was the president towards the end of the Great Depression; proposed the New Deal to help people get back on their feet during the depression. Was the "savior" for people during this time; Very involved in the government and changed the way future presidents ruled.

Senator Huey Long

Believed to give everyone equal amount of money (communism); wanted the money and power but got shot (literally).

Dr Francis Townsend

Wanted to give elderly (anyone over 60) $200/month

Father Charles Coughlin

Made anti-semitic attacks towards bankers and preached silver coinage usage.

1929 Stock Market Crash; Reason #1

Weak global economy
The economy was extremely weak and fragile due to people buying on margin, using credit, and taking out loans.

1929 Stock Market Crash; Reason #2

Financial Speculation
People became overconfident in the stock market, which lead to them buying on margin and making risky investments.

1929 Stock Market Crash; Reason #3

No federal control on the economy
There was no standard federal bank and the system was decentralized allowing for many small banks to collapse. This left people without their money and businesses without the ability to take loans.

1929 Stock Market Crash; Reason #4

People were going to the bank with their stocks asking for their money and gold back because they knew the stock market would crash. But the bank no longer had enough money to pay everyone back.

1929 Stock Market Crash; Reason #5

Smoot-Hawley Act
Countries retaliated and put high taxes on U.S. imports.

Jacob Lawrence

An African American painter who chronicled the experiences of the Great Migration north through art

Susan B. Anthony

An American social reformer and feminist who played a pivotal role in the women's suffrage movement.

Langston Hughes

African American poet who described the rich culture of african American life using rhythms influenced by jazz music. He wrote of African American hope and defiance, as well as the culture of Harlem and also had a major impact on the Harlem Renaissance.

The Great Migration (Push Factors)

included the lack of economic opportunity in the South. This was especially true for sharecroppers and others who worked in rural areas. Jim Crow segregation laws and the threat of lynching were major problems in the South.
-Limited life options
-Racism and discrimination
-Increase in lynching

Flapper Movement

"Flappers" in the 1920s was a term applied to a "new breed" of young Western women who wore short skirts, bobbed their hair, listened to jazz, and flaunted their disdain for what was then considered acceptable behavior. Flappers were seen as brash for wearing excessive makeup, drinking, treating sex in a casual manner, smoking, driving automobiles and otherwise flouting social and sexual norms.

The Great Migration (Pull Factors)

Northern and Western cities offered economic opportunities, especially during the World Wars when the need for factory workers was high. Although African Americans still faced significant racism in these regions of the country, they had more freedom and generally more opportunities for better lives than if they had remained in the South.

Treaty of Versailles

Treaty that ended WW I. It blamed Germany for WW I and handed down harsh punishment.

Dawes Plan (1924)

This loan program was crafted to give money to Germany so that they could pay war reparations and lessen the financial crisis in Europe; the program ended with the 1929 stock market crash.

What Did the Treaty of Versailles Do?

Forced Germany to surrender colonies in Africa, Asia and the Pacific
Cede territory to France and Poland
Reduce the size of the military
Demilitarization of the Rhineland
Pay war reparations to Allied countries
Accept guilt for the war

Rise of Hitler

Hitler's votes rise as the economic trouble increase. He promises that Germany will once again be strong by re-arming themselves and increasing the military and taking over nations

Hyperinflation

inflation that is out of control

Inflation

A general and progressive increase in prices