The Great Depression and the New Deal

The New Deal

A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression.

Bank Holiday 1933

FDR declared that all banks were to be closed on March 6, 1933. A few days later he allowed the reopening of economically sound banks.

The Great Crash

The collapse of the American stock market in 1929

Herbert Hoover 1928

-elected in 1928
-"Chicken in every pot"--promised continued prosperity
-Stock Market crash led him to be blamed for the Depression

Fireside Chats

informal talks given by FDR over the radio; sat by White House fireplace; gained the confidence of the people

Easy credit/ Installment Plan

People could purchase things on credit which before they would have had to save up for years

buying on margin

paying a small percentage of a stock's price as a down payment and borrowing the rest

Glass-Steagall Act

(Banking Act of 1933) - Established the Federal Deposit Insurance Corporation and included banking reforms, some designed to control speculation. Repealed in 1999, opening the door to scandals involving banks and stock investment companies.

Security and Exchange Commission (SEC)

serve as a govt watchdog over the nations stock markets

Argiculture Adjustment Act

New Deal program which paid farmers to reduce the amount of crops or livestock they produced to help increase prices

Lazzez Faire

Free market, or a policy of letting things take their own course without interfering

First 100 days of FDR

The first 100 days of Franklin Roosevelt's presidency where he pushed program after program through congress providing relief, creating jobs, and stimulate economic recovery (15 in all)

Bank Runs and Failures

it was in the midst of the Great Depression where everyone went to banks to withdraw all their money, but the banks didn't have the money to pay them back. caused nun the stock market crash and massive withdrawal. over 20% of banks were closed. many states existed without banks

The Dust Bowl

Region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages.

Federal Reserve

The central bank of the United States and the most powerful financial institution in America. Establishes interest rates on lending and borrowing, monitors inflation, and the amount of currency in circulation

Federal Deposit Insurance Corporation (FDIC)

an agency created in 1933 to insure individuals' bank accounts, protecting people against losses due to bank failures

Civilian Conservation Corps

New Deal program that hired unemployed men to work on natural conservation projects

The Wagner Act 1935

also National Labor Relations Act; granted rights to unions; allowed collective bargaining

Court Packing Plan

President FDR's failed 1937 attempt to increase the number of US Supreme Court Justices from 9 to 15 in order to save his 2nd New Deal programs from constitutional challenges

Social Security Act

guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health

John Maynard Keynes

British economist who argued that for a nation to recovery fully from a depression, the govt had to spend money to encourage investment and consumption

Huey Long

Political leader from Louisiana who criticized the New Deal called for a 'share the wealth plan'

Father Caughlin

the "radio priest"; thinks the new deal doesn't do enough for the people, particularly farmers and poor; thought adolf hitler had the right idea about getting rid of the depression

A living Wage

The minimum income necessary that is high enough to maintain a normal standard of living.

Francis Townsend/Townsend Plan

Government provide $200/month to all citizens over the age of 60.

-Trickle out to the rest of society; provide recovery

Broker State

role of the government to work out conflicts among competing interest groups

safety net programs

A variety of government programs that benefit individuals and families with low incomes. These include food stamps, education assistance (grants and loans), housing vouchers, tax credits, job training, child care and more.

deficiet spending

situation in which a government spends more money than it takes in

New Deal: Relief

New Deal measures taken to put people back to work supposed to be limited/temporary

New Deal Recovery

A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression.

New Deal Reform

"Rugged Individualism"

Herbert Hoover's belief that people must be self-reliant and not depend upon the federal government for assistance.

Prohibition

A law forbidding the sale of alcoholic beverages

Black Tuesday (October 29, 1929)

On this day the stock market boom had fell out, as millions of panicky investors ordered their brokers to sell, when there were practically no buyers to be found. After that stock prices continued to go down until they finally hit bottom.

Black Sunday April 14, 1935

Massive dust storm hits the Great Plains, blocking out the sun

Liberty League (1934)

Organization of wealthy Republicans and conservative Democrats whose attacks on the New Deal caused Roosevelt to denounce them as "economic royalists" in the campaign of 1936. Rep fought against the "socialistic" ND schemes.

Brain Trust, 1930s

Group of expert policy advisers who worked with FDR in the 1930s to end the great depression

New Deal Coalition

an alignment of diverse groups dedicated to supporting the Democratic Party

Francis Perkins, Secretary of Labor

Roosevelt's Secretary of Labor and first woman cabinet member in U.S. history.

binding arbitration

negotiation in which union and management must accept an impartial observer's resolution of a dispute

The Gold Standard

A monetary system in which paper money and coins are equal to the value of a certain amount of gold

Union Party (1936)

organized by Dr. Townsend to oppose FDR

bear market

a market in which prices are falling, encouraging selling.

Bull Market

A period of increased stock trading and rising stock prices

HOLC (Home Owners Loan Corporation)

loaned money at low interest to homeowners who could not meet mortgage payments

Resettlement Administration

Administration that helps move farmers away from Dust Bowl stricken areas

CIO

Congress of Industrial Organizations. proposed by John L. Lewis in 1932. a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.

Rural Electrification Administration (REA)

affordable electricity would improve the standard of living and the economic competitiveness of the family farm; created to bring electricity to rural areas like the Tennessee Valley; many opposed

FERA

Federal Emergency Relief Administration: combined cash relief to needy families with work relief

WPA (Works Progress Administration)

key New Deal agency that provided work relief through various public-works projects

PWA (Public Works Administration)

Put people to work building or improving public buildings like schools, post offices,etc.