Great Depression

corporation

type of business separate from the its owners that can own property, do business, etc.

stock

piece of ownership in a company that people can buy or sell

Initial Public Offering (IPO)

when a company sells its stocks to the public for the first time

Buying on Margin

Using money you don’t have to purchase something that may go up or down in value

“Tinker Bell Principle”

Stock prices go up when the public believes they will rise. Stock prices goes down when public believes they will fall.

Buying on credit

buying something now and paying it back later

Bank Holiday

temporarily closed all banks to help slow the run on banks

EBRA

Emergency Banking Relief Act - allowed gov’t to help troubled banks until they could reorganize

FERA

Federal Emergency Relief Act - pumped $500 million into state-run welfare programs that provided money to those in need

AAA

Agricultural Adjustment Administration - paid farmers to decrease production in order to raise prices and maintain economic stability

CCC

Civilian Conservation Corps - hired young men to work in national parks

PWA

Public Works Administration - hired workers to build out infrastructure

WPA

Works Progress Administration - created jobs for millions of Americans centered on infrastructure and public works projects

FDIC

Federal Deposit Insurance Corp - protected depositors’ accounts and lowered the risk of runs on banks

SSA

Social Security Administration - established retirement payments (pensions) for the elderly + provided unemployment compensation, needy children, and handicapped

FLSA

Fair labor Standards Act - made minimum wages at 25 cents per hour and maximum weekly work hours at 44

TVA

Tennessee Valley Authority - built dams to control flooding in the southeastern USA and created hydroelectric power plants to provide electricity to rural homes in the area

deficit spending

when the country spends more money than it makers in a year

gov’t bonds

individuals give the gov’t money in return for being paid back at a later date with interest

national debt

$39 trillion

bureaucracy

system of running a gov’t or organization using many rules and officials who each have a specific job

Dow Jones Industrial Average

most well-known measurement of the stock market, number based on the stock prices of 30 major US companies that represent how the market is performing

relief

stopped immediate suffering

recovery

restart the economy

reform

protect against a future economic collapse