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Buying on Margin
Purchasing securities using borrowed funds, where the investor only pays a fraction of the total price, with the rest being borrowed from a broker.
Bonus Army
A group of World War I veterans and their families who marched on Washington, D.C. in 1932 to demand early payment of their bonus certificates.
Causes of the Great Depression
Stock market crash, unbalanced economy, trouble with credit, Hawley Smoot Tariff, unemployment, and poverty.
Black Tuesday
Occurred on October 29th, 1929, 16 million stock shares were sold.
Installment Buying
Way to purchase goods or services by paying for them in smaller, regular payments over time instead of paying the full amount upfront.
Hawley-Smoot Tariff
A protective high tariff that taxed goods from 40-50%.
Hoover's Response
Didn't believe the government should provide direct help for the people, they should help each other. Believed helping businesses would indirectly help the people as well.
Election of 1928
Hoover (republican) dry candidate vs Smith (democrat) wet candidate. The economy was doing well so Hoover wins by a landslide.
Election of 1932
Hoover vs FDR, FDR wins because he promises Americans a 'new deal.'
Issues with Banks
Buying with credit, unwise loans, no deposit insurance, buying on margin.
Laissez-faire
The economic philosophy that advocated for minimal government intervention in the economy, essentially allowing the market to correct itself without significant government interference.
Hoovervilles
Makeshift communities built by the homeless during the Great Depression to provide shelter for themselves and their families.
WPA
8 million temporary, relief, jobs.
HOLC
Low interest rate to homeowners to prevent homelessness.
SSA
Provides pensions and retirement money every month to people who are ill or over the age of 65.
FDIC
Guarantee bank deposits stay safe (up to $2500).
CCC
Paid men to work on environmental projects such as public parks.
Speculation
The act of investing in financial markets or assets with the expectation of quick profits based on future price movements, often involving high risk.
Bull Market
A financial market characterized by rising asset prices, typically lasting for months or years, reflecting optimism and strong investor confidence.
Bear Market
A market condition where asset prices are falling or expected to fall, typically by 20% or more from recent highs.
New Deal Programs
A series of economic programs and reforms introduced by President Franklin D. Roosevelt during the Great Depression to provide relief, recovery, and reform.
Bank Holiday
A temporary closure of banks, often declared by a government to stabilize or reorganize the financial system (e.g., FDR's Bank Holiday in 1933 to prevent bank runs).
Court Packing Plan
A proposal by FDR in 1937 to add more justices to the U.S. Supreme Court to secure favorable rulings for New Deal legislation, which was seen as controversial.
The Brain Trust
A group of intellectuals and advisors who helped FDR develop policies during the early years of his presidency, particularly in the New Deal.
Fireside Chats
A series of radio addresses given by FDR to speak directly to the American public, providing updates and reassuring them during the Great Depression.
Dust Bowl
A period of severe dust storms and droughts during the 1930s that devastated agricultural lands in the central United States, exacerbating the Great Depression.
FDR (Franklin D. Roosevelt)
The 32nd President of the United States, who served from 1933 to 1945, and led the nation through the Great Depression and World War II.
SEC (Securities and Exchange Commission)
A U.S. government agency created in 1934 to regulate the securities industry, ensuring transparency and protecting investors.
TVA (Tennessee Valley Authority)
A New Deal program created in 1933 to provide economic development, flood control, and electrification to the Tennessee Valley region.
CWA (Civil Works Administration)
A New Deal program established in 1933 to create temporary jobs for unemployed workers, especially in public infrastructure projects.
AAA (Agricultural Adjustment Act)
A 1933 law aimed at boosting agricultural prices by reducing crop surplus, paying farmers to limit production.
3Rs of the New Deal
Relief, recovery, reform.
What was the New Deal?
Various programs were put into place by FDR to assist Americans in recovering damages caused by the Great Depression.
Who was FDR's wife and why was she significant?
Eleanor Roosevelt. She changed her role as the first lady by being her husband's eyes and ears because he had polio and therefore needed a lot of assistance.
