Chapter 28 - The Stock Market Crash and the Great Depression

Hoover

________- Opposed govt giving social welfare.

New Deal

________- Relief, recovery, reform (public works + govt regulations)

WWI

US Food Administration

1932

Hoover

New Deal

Expanded RFC

WWI veterans

Wanted retirement bonuses early

1932

Marched + camped in DC

Hoover

Called US Army → Drove veterans away

FDR

Govt involvement in American economy

New Deal

Relief, recovery, reform

1933-1941

FDR

Relief

Public works project → Employment

Recovery

Strengthen economy

Reform

Prevent future economic crisis

1933

FDR

1933

FDR

Hoover

Opposed govt giving social welfare

FDR

New Deal

New Deal

Relief, recovery, reform (public works + govt regulations)

Stock Market Crash

A sharp decline in U.S. stock market values in 1929 that contributed to the Great Depression of the 1930s

Great Depression

The economic crisis beginning with the stock market crash in 1929 and continuing through the 1930s

Margin Buying

Getting a loan from your brokerage and using the money from the loan to invest in more securities than you can buy with your available cash

Pumping and Dumping

In the early 1990s the penny-stock brokerage Stratton Oakmont artificially inflated the price of owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price

Herbert Hoover

An American politician and engineer who served as the 31st president of the United States from 1929 to 1933 and a member of the Republican Party, holding office during the onset of the Great Depression

Charles Mitchell

An American banker whose incautious securities policies facilitated the speculation which led to the Crash of 1929

Joseph P. Kennedy

Made a large fortune as a stock market and commodity investor and later rolled over his profits by investing in real estate and a wide range of business industries across the United States

Reconstruction Finance Corporation

A government corporation administered by the United States Federal Government between 1932 and 1957 that provided financial support to state and local governments and made loans to banks, railroads, mortgage associations, and other businesses

Bonus Army

A group of 43,000 demonstrators – 17,000 veterans of the United States in World War I, their families, and affiliated groups – who gathered in Washington, D.C., in mid-1932 to demand early cash redemption of their service bonus certificates

Election of 1932

Democratic New York Governor Franklin D. Roosevelt defeated Republican incumbent president Herbert Hoover in a landslide, with Hoover winning only six Northeastern states

Franklin Delano Roosevelt

Directed the federal government during most of the Great Depression, implementing his New Deal domestic agenda in response to the worst economic crisis in U.S. history

New Deal

The historic period in the United States during which President Franklin Roosevelt's economic policies were implemented

Eleanor Roosevelt

Served as the first lady of the United States from 1933 to 1945, during her husband President Franklin D. Roosevelt's four terms in office

Frances Perkins

An American workers-rights advocate who served as the 4th United States secretary of labor from 1933 to 1945

Brains Trust

A group of close advisers to a political candidate or incumbent; these were often academics who were prized for their expertise in particular fields

Relief, Recovery, and Reform

Relief meant that the president wanted to help those in crisis immediately by creating jobs, bread lines, and welfare. Recovery was aimed at fixing the economy and ending the Depression. Reform was President Roosevelt's objective of finding the sources of the Depression and creating a plan so that it would never happen again.

First Hundred Days

FDR immediately summoned the United States Congress into a three-month (nearly 100-day) special session, during which he presented and was able to rapidly get passed a series of 15 major bills designed to counter the effects of the Great Depression

Bank Holiday

After a month-long run on American banks, Franklin Delano Roosevelt proclaimed a Bank Holiday, beginning March 6, 1933, that shut down the banking system

Huey P. Long

An American politician who served as the 40th governor of Louisiana from 1928 to 1932 and as a United States senator from 1932 until his assassination in 1935

John Maynard Keynes

An English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments