Economic and Social Impacts of the Great Depression

Speculation

Buying stocks and bonds on the chance of a quick profit, ignoring the risks.

Buying on margin

Paying a small percentage of stock's price upfront, then borrowing the rest or putting it on credit.

Black Tuesday

October 29, 1929, the stock market crashes, people who bought stocks on credit were stuck with huge debts, other lost most of their savings.

Recession

A period of declining real GDP, accompanied by lower real income and higher unemployment.

Depression

A long-term economic state characterized by unemployment and low prices and low levels of trade and investment (worse than a recession).

The Great Depression

The period between 1929-1940 in which the economy plummeted and unemployment skyrocketed; banks failed, businesses went bankrupt, unemployment soared.

Hawley-Smoot Tariff Act

1930, established the highest protective tariff in US history; designed to protect American farmers and manufacturers from foreign competition; had the opposite effect - American goods not sold abroad, unemployment increased.

Direct relief

Cash payments or food provided by the government to the poor.

Dust Bowl

The region in TX, OK, KS, CO, and NM that was made worthless for farming by drought and dust storms during the 1930s.

The 3 R's of the New Deal

Relief, recovery, reform.

Agricultural Adjustment Act (AAA)

1933, paid farmers to leave a portion of land unseeded and kill livestock.

Civilian Conservation Corps (CCC)

1933 - 1942: 3 million jobs provided for young men aged 18-25.

Deficit spending

Spending more money than the government receives in revenue.

Works Progress Administration (WPA)

New Deal agency that helped create jobs for those that needed them. It created around 9 million jobs working on bridges, roads, and buildings.

Wagner Act

Reestablished the National Industrial Recovery Act (NIRA) protected workers' rights to join unions and participate in collective bargaining.

Social Security Act

1935, old age insurance for retirees and spouses, unemployment compensation, aid to families with dependent children and the disabled.

Federal Deposit Insurance Corporation (FDIC)

Insured bank accounts due to loss of faith in banks during depression.

Securities and Exchange Commission (SEC)

A government commission created by Congress to regulate the securities markets and protect investors.

Huey Long

Louisiana senator and presidential hopeful; proposed a nationwide social program called Share-Our-Wealth; assassinated in 1935.

Eleanor Roosevelt

Played a major role in government, public and assertive first lady, active in women's rights, humanitarian efforts, and education reform.

Frances Perkins

First female cabinet member; FDR's Sec. of Labor.

Fascism

A way of organizing a society in which a government ruled by a dictator controls the lives of the people and in which people are not allowed to disagree with the government.

Cash and Carry

Policy in which the American government would allow the British to purchase American goods but they were required to pay for them in cash and had to transport those goods back to Britain on their own ships.

Lend-Lease Act

Act which set up a system to allow the United States to give or lease military equipment to any country they deemed vital to the defense of the US.

Appeasement Policy

Policy used by the British Prime Minister Chamberlain in an attempt to avoid war with Germany. Chamberlain gave in to Hitler's territorial demands in an attempt to avoid war.

War Productions Board

An agency of the US government who assisted in the transition from producing peacetime goods to wartime goods.

Zoot Suit Riots

Attacks on Mexican Americans due to their choice of style that was viewed as anti-American.

Korematsu v. US

Supreme court case that ruled that the internment of Japanese Americans was legal due to civil liberties being limited in times of war.

Yalta Conference

Conference between the Big Three (FDR, Churchill, and Stalin) in which they decided to divide Germany into 3 zones each controlled by one of the three.

Potsdam Conference

Conference in which it was decided that nothing but unconditional surrender from the Japanese would be accepted and laid out plans for post-war peace.