Great Depression and New Deal

Great Depression

Period from 1929 to 1941 in which the U.S. economy faltered and unemployment soared

Business Cycle

Periodic growth and contraction of the economy

Herbert Hoover

Served as a secretary of Commerce and later as the president of the US during the Great Depression. His administrations response to the depression was widely criticized for its ineffectiveness

Stock Market Speculation

Practice of making high-risk investments in hopes of obtaining large profits

Stock Market Crash (Black Tuesday)

October 29, 1929, when the stock prices fell sharply in the Great Crash

Hawley Smoot Tariff

Protective tax on imports enacted by Congress in 1930 in an effort to counter the nation’s slide into the Great Depression

Monetary Policy

Controlled by the Federal reserve System that manipulates the money supply and/or interest rates (and thus the availability of credit)

Used to increase/decrease demand for goods/services and keep the business cycle from fluctuating too much

Federal Reserve

The central banking system of the United States, responsible for regulating the money supply, setting interest rates, and overseeing the banking system.

Franklin Roosevelt

32nd President of the United States (1933-1945) known for implementing the New Deal to counter the Great Depression and for leading the nation during most of World War II.

New Deal

A series of programs and reforms enacted by Franklin Roosevelt in the 1930s to combat the Great Depression and promote economic recovery.

Hooverville

• People who lost jobs and wages sometimes lost their homes. When this happened, many went to improvised housing and squatted on property they did not own, like parks or vacant lots

• There were Hoovervilles (named for the president) everywhere- including the largest in Central Park and on famous one in Circleville, Ohio

Bonus Army

• In 1924 the government promised all veterans of WWI a bonus, to be paid in 1945

• By 1932 the veterans wanted to get the bonus earlier since they needed the money

• 20,000 veterans created a camp on the National Mall

• The protesters did not get their bonus, and were eventually removed by force by the Army in a violent confrontation that left 2 dead.

National Recovery Administration

This Administration, staffed collaboratively with people from both the business side and workers’ side, set prices for consumer goods, production levels for companies, wages and hours for employees.

New Deal Relief to help unemployed- Civilian Conservation Corps

This administration focused on restoring the United States by addressing unemployment and maintaining America’s natural resources. This was one of the New Deal’s most impactful organizations.

New Deal Relief to help unemployed- Works Progress Administration

Designed to provide jobs for millions of Americans while simultaneously improving the nation’s infrastructure and enriching it’s cultural landscape.

New Deal Reforms to help Elderly - Social Security Act

Provide financial aid to vulnerable groups such as the disabled, elderly, and unemployed. Old age pensions were created to provide retired workers age 65 or older with a continuous income.

New Deal Reforms to help investors- Federal Deposit Insurance Corporation

The primacy focus of the FDIC is to have people trust the banks and if the banks failed they wouldn’t lose their money due to the insurance.

New Deal Reforms to help investors - Securities Exchange Commission

Restore public trust in the financial market and set reforms. It required publicly traded companies to disclose accurate financial information, enforced rules against insider trading and fraudulent practices, held individuals and corporations accountable for misconduct and oversaw stock exchanges.

Wagner Act

Also known as the National Labor Relations Act of 1935, it granted workers the right to form unions and engage in collective bargaining.

Frances Perkins

The first female Cabinet member as part of the Roosevelt Administration as Secretary of Labor. She played a major role in establishing Social Society and winning approval Fair Labor Standards Act.

Black Cabinet

Group of African-American leaders who served as unofficial advisers to FDR

Indian New Deal

1930s legislation that gave Native Americans greater control over their affairs and provided funding for schools and hospitals

Welfare State

Government that assumes responsibility for providing for the welfare of the poor, elderly, sick and unemployed

Fireside Chat

A series of informal radio addresses by Franklin D. Roosevelt during the 1930s, aimed at reassuring the American public about the government's efforts to combat the Great Depression.