The Great Depression Vocab

Great Depression

The worst economic crisis in U.S. history, beginning in 1929 and lasting through the 1930s.

Black Tuesday

October 29, 1929, when the U.S. stock market crashed and triggered the Great Depression.

Stock Market Crash

The sudden collapse of stock prices in 1929 that helped start the Depression.

Speculation

Risky stock investing in the 1920s based on the hope that prices would keep rising.

Buying on Margin

Purchasing stocks with borrowed money, which became disastrous when prices fell.

Federal Reserve

The U.S. central bank that tried to control risky lending before the crash.

Overproduction

When U.S. factories and farms produced more goods than Americans could afford to buy.

Underconsumption

When many Americans lacked the money to purchase goods, slowing the economy.

Agricultural Slump

Falling farm prices that hurt American farmers before and during the Depression.

Bank Failure

When banks closed because they ran out of money, wiping out people's savings.

Unemployment

The condition of being without a job; about 25% of Americans were unemployed in 1933.

Hoovervilles

Shantytowns built by homeless Americans during the Depression.

Relief

Immediate help, such as food or money, given to Americans in need.

Private Enterprise

An economic system based on individual business ownership, supported by Hoover.

Reconstruction Finance Corporation (RFC)

A program that loaned money to banks and businesses but not directly to people.

Lame Duck

A president who has lost an election but remains in office with limited power.

Franklin D. Roosevelt (FDR)

The U.S. president elected in 1932 who led the nation through most of the Depression.

New Deal

FDR's set of programs designed to fight the Great Depression.

Fireside Chats

Radio talks in which FDR explained the New Deal and reassured Americans.

Deficit Spending

When the U.S. government spent more money than it collected to boost the economy.

Pump Priming

Government spending meant to stimulate economic activity during the Depression.

Federal Deposit Insurance Corporation (FDIC)

A New Deal agency that protected Americans' bank savings.

Federal Securities Act

A law requiring honesty in the sale of stocks to prevent future crashes.

Public Works Administration (PWA)

A New Deal program that created construction jobs.

Works Progress Administration (WPA)

A New Deal program that provided jobs in construction and the arts.

Social Security Act

A law creating pensions for the elderly and unemployment insurance.

Agricultural Adjustment Act (AAA)

A law paying farmers to reduce crop production to raise prices.

Tennessee Valley Authority (TVA)

A program that built dams and power plants to help poor regions.

Dust Bowl

A drought and dust storm disaster that worsened the Depression for farmers.

Migration

The movement of American families in search of work during the Depression.

Socialism

A system favoring government control of parts of the economy; gained attention during the Depression.

Communism

A revolutionary ideology rejected by most Americans during the Depression.

Democracy

A system of government supported by Americans despite economic hardship.

Recession

A period of economic decline; the U.S. experienced several during the Depression.

Relief, Recovery, Reform

The three main goals of the New Deal.