Shinaberry 1/14/26 American History: The Great Depression and the New Deal

These flashcards cover key concepts and terms related to the Great Depression and the New Deal, including economic policies, significant programs, and their impacts on American society.

Business Cycle

periods of expansion and recession in an economy

Great Depression

economic depression that took place during the 1930s -high unemployment and widespread poverty

Consumer Credit

credit cards to purchase goods and services, which contributed to economic downturns during the Great Depression when people became heavily in debt.

Stock Market Speculation

Making high-risk investments in hopes of quick profit, which led to inflated stock prices and market instability before the Great Depression.

Buying on Margin

Purchasing stocks by paying only a fraction of the cost upfront and borrowing the rest, contributing to financial collapse when stock prices fell.

Federal Reserve

The central banking system of the United States, which raised interest rates and limited the money supply in 1929

National Recovery Administration (NRA)

A New Deal agency that made fair competition codes for businesses but was criticized for giving the government too much power

Dust Bowl

severe drought in the 1930s that damaged agriculture and forced many farmers to move in search of work.

Works Progress Administration (WPA)

A New Deal program that provided jobs in construction and the arts but faced criticism for wastefulness.

Federal Deposit Insurance Corporation (FDIC)

An agency that insures bank deposits and helped bring back confidence in banks during the Great Depression.

Social Security Act

Legislation that established a pension system for the elderly, unemployed, and disabled, funded by payroll taxes.

Agricultural Adjustment Act (AAA)

A New Deal program that aimed to boost agricultural prices by reducing surpluses, but led to evictions of African American farmers.

Civilian Conservation Corps (CCC)

A public work relief program that provided jobs for young men in environmental conservation projects.

Tennessee Valley Authority (TVA)

A New Deal agency created to provide electricity and jobs to a poor rural area, criticized for competing with private companies.

New Deal

A series of programs and reforms initiated by President Franklin D. Roosevelt to combat the Great Depression and expand the federal government's role in the economy.

How effective were President Hoover’s supply-side policies?

Hoover’s policies focused on giving money to banks and big businesses, hoping it would "trickle down" to workers. They didn't reach the poor fast enough to stop the suffering.

How did the government respond to the Bonus Army protesters?

WWI veterans marched on D.C. to demand early payment of their bonuses. Hoover ordered the army to remove them using tear gas and tanks

What role does the FDIC play?

The Federal Deposit Insurance Corporation insures bank deposits.

What role does the Securities and Exchange Commission (SEC) play?

The SEC regulates the stock market to prevent fraud, insider trading, and the reckless speculation that led to the 1929 crash.

How did New Deal Programs reinforce traditional gender differences?

Many programs only hired men, allowed businesses to pay women lower wages than men

How did some New Deal programs unintentionally hurt African Americans?

The Agricultural Adjustment Act (AAA) paid landowners to grow fewer crops. Many white landowners took the money and evicted their African American sharecroppers and tenant farmers.

What was the Indian New Deal?

It gave Native Americans more control over their affairs and encouraged the practice of their culture. However, some programs hurt them by forcing the reduction of livestock (like Navajo sheep) to prevent soil erosion.

How did the New Deal programs expand the role of the federal government?

It created the modern welfare state and made the President much more powerful in directing the national economy.