The Great Depression & New Deal Lecture Notes (copy)

This set of flashcards is intended to help review key terms and concepts related to the Great Depression and the New Deal as discussed in the lecture.

Bull Market

A period of rising stock prices and economic growth.

Speculation

The practice of buying stocks with the hope of making a profit from their future price increase, often involving risks.

Buying on Margin

Purchasing stocks by borrowing money, allowing investors to buy more shares than they could with their own funds.

Hawley Smoot Tariff

A 1930 tariff that raised duties on imports, leading to a decrease in international trade and worsening the Great Depression.

Fireside Chats

Radio broadcasts by FDR to communicate directly with the American public during the Great Depression.

Emergency Banking Relief Act

A 1933 act to stabilize the banking system by having banks close temporarily and verify their solvency before reopening.

Social Security Act

A law providing financial assistance to retirees and the unemployed, funded by payroll taxes from employees and employers.

Dust Bowl

A period of severe dust storms in the 1930s that damaged agriculture in the US and forced farmers to leave their homes.

National Labor Relations Act (Wagner Act)

A 1935 law that established the rights of workers to organize and to engage in collective bargaining.

Court Packing Controversy

FDR's unsuccessful attempt to increase the number of Supreme Court justices to support New Deal legislation.

Lend-Lease Act

A program under which the US supplied Allied nations with vital war material during WWII without direct involvement.

Dawes Plan

A plan in which the US lent money to Germany so it could pay reparations to Allied countries.

Franklin D. Roosevelt (FDR)

The 32nd President of the United States who implemented the New Deal to respond to the Great Depression.

The Great Depression

A severe worldwide economic downturn that lasted from 1929 to the late 1930s.

New Deal

A series of programs and reforms introduced by FDR to address the Great Depression and revitalize the economy.

Laissez-Faire Policies

An economic principle of minimal government interference in the workings of the free market.

Bear Market

A period of falling stock prices and economic decline, often causing investor pessimism.

Stock Market Regulation

Laws and policies designed to oversee and maintain fairness and order in the stock market, particularly after the 1929 crash.

New Deal Impact on the Economy

FDR's New Deal programs aimed to provide relief, recovery, and reform, significantly reshaping government involvement in the economy.

FDR's Second New Deal

A series of programs launched by FDR in 1935 to provide more extensive economic relief and reform, including Social Security and labor rights protections.

Recession

A significant decline in economic activity spread across the economy lasting more than a few months, often seen as part of economic cycles.

Keynesian Economic Theory

An economic theory that advocates for increased government spending and lower taxes to stimulate demand and pull the global economy out of depression.

Economic Indicators

Statistics that provide information about the economic performance of a country, such as GDP, unemployment rates, and consumer spending.

Fiscal Policy

Government policy regarding taxation and spending to influence the economy.

Monetary Policy

The process by which a central bank manages the money supply and interest rates to achieve economic objectives like controlling inflation and stabilizing currency.

Presidential Influence on Economic Policy

Presidents can significantly shape economic policy through legislative priorities, executive orders, and appointments of key economic advisors.

Bull Market

A market condition characterized by rising stock prices and overall economic growth. During a bull market, investor confidence tends to be high, often leading to further investment and inflation.

Social Security Act

A landmark piece of legislation enacted in 1935 that established a social insurance program in the United States, providing financial assistance to the elderly, disabled, and unemployed through payroll taxes.

Dust Bowl

A series of severe dust storms during the 1930s that resulted from drought and poor farming practices, devastating agricultural production in the Great Plains and causing widespread displacement and poverty among farmers.

National Labor Relations Act (Wagner Act)

A 1935 law that affirmed the rights of workers to organize labor unions and engage in collective bargaining with employers, significantly impacting labor relations in the United States.

Court Packing Controversy

President Franklin D. Roosevelt's controversial attempt to increase the number of justices on the Supreme Court by appointing additional justices for every sitting justice over the age of 70, to secure more favorable rulings for New Deal legislation.

Lend-Lease Act

A World War II policy enacted in 1941 under which the United States supplied military aid and materials to Allied nations, allowing the U.S. to support allies without direct involvement in the conflict.

Dawes Plan

A 1924 plan devised for the reconciliation of German reparations payments, where the United States provided loans to Germany to help stabilize its economy and facilitate reparation payments to Allied countries.

Franklin D. Roosevelt (FDR)

The 32nd President of the United States, who served four terms from 1933 to 1945. He is best known for his implementation of the New Deal, a series of programs and reforms designed to combat the Great Depression.

The Great Depression

A severe worldwide economic downturn that began in 1929 and lasted well into the late 1930s, marked by widespread unemployment, bank failures, and significant decreases in economic activity.

New Deal

A comprehensive set of federal programs and regulations introduced by President Franklin D. Roosevelt during the 1930s in response to the Great Depression, aimed at economic recovery, job creation, and social reform.

Laissez-Faire Policies

An economic philosophy advocating minimal government intervention in the free market, allowing supply and demand to dictate economic activity without significant regulatory oversight.

Bear Market

A market condition characterized by falling stock prices and overall economic decline. Bear markets often lead to widespread investor pessimism and decreased spending.

Stock Market Regulation

A framework of laws and rules intended to oversee and maintain fair practices in the stock market, particularly enacted in response to the 1929 stock market crash to prevent fraud and protect investors.

New Deal Impact on the Economy

The far-reaching effects of FDR's New Deal programs on the U.S. economy, which included enhanced government participation in economic affairs, creation of jobs, and establishment of social safety nets.

FDR's Second New Deal

A series of programs initiated by President Roosevelt in 1935 that expanded upon his earlier New Deal policies with additional measures aimed at economic recovery, social welfare, and labor rights.

Recession

A period of significant decline in economic activity lasting more than a few months, marked by reduced GDP, investment, and consumer spending, often part of the broader economic cycle.

Keynesian Economic Theory

An economic theory proposed by John Maynard Keynes advocating for increased government spending and reduced taxes to stimulate demand, especially during economic downturns, to foster recovery.

Economic Indicators

Various metrics and statistics that provide insight into the economic performance of a country, including Gross Domestic Product (GDP), unemployment rates, consumer confidence, and inflation rates.

Fiscal Policy

The government's approach to managing its budget through taxation and spending decisions to influence economic conditions, such as growth, inflation, and unemployment.

Monetary Policy

The strategy employed by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives, such as controlling inflation and stabilizing the national currency.

Presidential Influence on Economic Policy

The significant role that presidents play in shaping a nation’s economic policy through their legislative initiatives, executive actions, and selection of key economic advisors.

Civilian Conservation Corps (CCC)

A New Deal program established in 1933 that employed young men in conservation and public works projects, contributing to employment and environmental restoration.

Public Works Administration (PWA)

A New Deal agency created in 1933 to fund large-scale public works construction projects to provide jobs and stimulate the economy through infrastructural development.

Works Progress Administration (WPA)

A New Deal agency established in 1935 that provided millions of jobs working on public projects, including construction, arts, and education, to combat unemployment during the Great Depression.

Tennessee Valley Authority (TVA)

A federally owned corporation established in 1933 as part of the New Deal to provide navigation, flood control, electricity generation, and economic development in the Tennessee Valley.

Federal Deposit Insurance Corporation (FDIC)

A U.S. government agency created in 1933 that insures deposits in banks and thrift institutions to protect depositors and restore trust in the American banking system.

National Industrial Recovery Act (NIRA)

A 1933 law that aimed to stimulate industrial growth through fair competition codes and encouraged labor rights, later deemed unconstitutional but influential in New Deal policies.