Great Depression and the New Deal: 1929-1941

stock market

established as a system from buying and selling shares of a company

bull market

long period of rising stock prices due to circumstances in the stock market

margin

what investors began buying stocks on. they would make a small cash down payment as low as 10% of the price

speculation

when buyers would invest a lot of money hoping that the market would continue to climb and they would make a fortune

what were TWO reasons why the stock market crash caused banks to fail?

1. many banks had lent money to stock speculators

2. banks had invested depositors’ money in the stock market hoping for higher returns that they could get by using money for conventional loans 

installment plan

where someone pays for a larger purchase overtime, which made Americans fall into debt

Identity and describe various economic causes of the Great Depression

1929 stock market crash, widespread buying on credit, over production of goods

How did the Hawley-Smoot tariff contribute to the worsening of the Depression

it raised the average tariff rate to to the highest level in American history

soup kitchens

where people without jobs lined up to receive free food

shantytowns/Hoovervilles

where homeless people set up shacks on unused or public land

What was the Dust Bowl? what were its causes and effects?

americas pastures and wheat fields being destroyed because of a severe drought

dorothea lange

aq photographer who took many famous pictures during the Great Depression

describe various effects of the Great depression

economic collapse, unemployment, bank failures

public works

government financed building projects that Hoover wanted to increase

relief

money that went directly to impoverished families

How did president Hoover's philosophy of government guide his response to the depression

guided his response to the depression by believing in rugged individualism, meaning that individuals could achieve success in their own efforts. He also opposed government delict spending because he thought it would delay economic recovery

steps or initiatives taken by president hoover to improve the economy 

-scheduling conferences with heads of important businesses to maintain wages

-expanding public works projects

-establishing the reconstruction finance corporation (RFC)

what was the bonus army march and what were its results?

a march on Washington by veterans for a full month in order to pass legislation. the result was hoover ordering an eviction which injured many people

what did FDR mean when he said ‘the only thing we have to fear is fear itself’?

he meant that people should not be so sad and paralyzed by the Great Depression and that they should take action instead of sitting back watching everything happen

what was the new deal

roosevrel’s polices for ending the depression

bank holiday

when 4,000 banks collapsed in March 1993 wiping out 9 million savings accounts so governors decided to close the remaining banks before they could be put out of business

fireside chats

direct talks fdr held with Americans to let them know what he was trying to accomplish

CCC

Civilian Conservation Corps: Employed single men ages 18-25 for natural resource conservation

TVA

Tennessee Valley Authority: built hydroelectric plants and dams aimed at improving seven southern states and attracting industry to the south

SEC

Securities and Exchange Commission: regulated the stock market to avoid dishonest practice

How did the Glass-Steagall Act and the Federal Deposit Insurance Corporation (FDIC) help make the banking industry safer?

pushed for new regulations for both banks and the stock market and guaranteed bank deposits up to $2,500

deficit spending

when FDR abandoned a balanced budget and begun borrowing money to pay for his programs 

WPA

World Progress Administration: combated unemployment, created jobs through the economy

National Labor Relations Act (Wagner Act)

organized factory elections by secret ballot to determine whether workers wanted a union

what four things did the Social Security Act specifically do?

1. created unemployment system 

2. disability insurance

3. old age pension

4. child welfare benefits

american liberty league

organized opposition to the New Deal and ‘teach the necessity of respect for the right of person and property’

father Charles coughlin

become impatient with the New Deals moderate reforms and formed the National Union for social justice

senator Huey long

improved schools, colleges, hospitals, roads, and bridges

dr Francis townsend

former public health officer, freedom up jobs for the unemployed

what was the new deal coalition and what were the groups that were part of it

powerful political alliance around the New deal

-labor unions

-blue collar + low income workers

-urban voters

Fair Labor Standards Act

provided more protection for workers, abolished child labor, and established a 40 hour work week for many workers

safety net 

what FDR’s programs created for American - protected them against economic disaster

How did the New Deal establish a new role for the Federal government in the economy and American life?

by expanding its power in economic regulation