Great Depression and New Deal: Key Concepts and Programs

Great Depression

A severe worldwide economic depression that took place during the 1930s.

Bull market

One with an upward trend in stock prices.

Bear market

One with a downward trend in stock prices.

Margin Buying

Practice of buying stock with borrowed money.

The Banking Crisis

Many investors lost everything in the stock market crash and were unable to pay their bank loans causing many banks to close.

Gross National Product

The total value of all goods and services produced in a given year.

Global Depression

Massive war debts in European countries from World War I and the US stock market crash caused the world economic system to sink into a depression.

Business Cycle

The regular ups and downs in a free-enterprise economy.

Mutualistas

Mexican American societies that worked together to help each other during the Great Depression.

Breadlines

Lines of people who waited for free bread and soup from charitable organizations.

Shantytowns

Collection of makeshift shelters for the homeless constructed in the depression.

Herbert Hoover

US President during the start of the Great Depression.

Rugged Individualism

Hoover's idea that success comes through individual effort and private enterprise.

Bonus Army

10,000 World War I veterans and family members who marched on Washington D.C. demanding early payment of bonuses they were owed.

Franklin D. Roosevelt

Won the 1932 Presidential election over Hoover easily and promised a 'new deal' for America during his campaign.

New Deal

President Franklin D. Roosevelt's programs to pull the nation out of the Great Depression.

Brain Trust

FDR's group of advisors who advised him on his New Deal programs.

First 100 Days

The first 100 days of FDR's first term of President which saw many New Deal programs established.

Bank Holiday

Closed every bank in the nation for 6 days, designed to stop massive withdrawals.

Fire-side Chats

FDR's radio broadcasts to the nation, communicating plans, vision, instilling confidence in New Deal programs and the economy.

FDIC

Insured deposits up to $5,000, now up to $100,000.

HOLC

Designed to assist homeowners who could not pay their mortgage payments.

CCC

Civilian Conservation Corp. 2.5 million young men given jobs that focused on the environment.

AAA

Paid farmers to reduce their output to increase the value of these crops.

TVA

Transformed the economic and social life of an entire region hit by flooding and disease.

John Collier

Led the founding of the American Indian Defense Association.

Share-our-wealth

Proposed plan to seize money from the wealthy through heavy taxes and provide guaranteed income to every American family.

WPA

Works Progress Administration. Employed 8.5 million Americans.

Social Security Act

Provided unemployment insurance, pensions, and payments to people with disabilities.

Dust Bowl

Massive Dust storms due to soil erosion in the Great Plains region.