The Great Depression and the New Deal

Great Depression

economic hard times that lasted from 1929-1940s

Black Tuesday

October 29, 1929; the day the stock market crashed

Causes of the Depression

overproduction, underconsumption, poor banking system, unwise loans, overspeculation, buying on credit/ installment plans, high tariffs

bankrupt

unable to pay debts

hard times

unemployment, decreased marriage rates and birth rates, starvation etc.

soup kitchens

set up by Herbert Hoover as a relief program to help feed the poor, unemployed

public works

programs created by the government to benefit the public

Bonus Army

WWI veterans who marched to Washington DC to demand the bonus they were promised; Hoover called out the National Guard; a baby was killed.

Franklin Roosevelt

32nd President (1933-1945)

Presented the American people with a New Deal to solve the problems of the Great Depression

100 days

FDR's first 100 days in office; first action was to close all banks on a "bank holiday"

Fireside chats

Speeches given by FDR to keep the American people updated about the progress of the New Deal and help reassure them in uncertain times.

CCC-Civilian Conservation Corps

Jobs for young men doing things to conserve the environment, like planting trees and creating parks.

WPA-Works Progress Administration

Put the jobless to work building hospitals,schools, parks, and airports.

National Industrial Recovery Act

set standards in wages, production,and prices

TVA-Tennessee Valley Authority

gave jobs rebuilding an important region in TN; brought flood relief and hydroelectric power to the area

AAA-Agricultural Adjustment Act

asked farmers to reduce production and destroy surpluses to make price of farm goods go up; later ruled unconstitutional

FDIC-Federal Deposit Insurance Corporation

provides insurance on bank accounts, so that if a bank failed, depositors could still get some of their money back

Pension

Sum of money paid to a person on retirement

Court packing scheme

FDR's plan to "pack" the Supreme Court with supporters to keep his New Deal programs from being declared unconstitutional

Collective bargaining

Union representatives negotiate with managment.

Social Security Act

1935, guaranteed retirement payments at 65; unemployment insurance, care for dependent mothers, children, and the handicapped.

Laissez-faire

Idea that government should play as small a role as possible in economic affairs.

Opposite of the New Deal.

Deficit spending

Spending more money than the government has.

Dust Bowl

Severe drought that worsened the Depression for people in the Midwest.

National debt

Total sum of money that the government owes.

Three R's

Relief, Recovery, Reform; the three ways FDR tried to address the depression.

Relief

aid for the needy; welfare; job programs

Recovery

A rise in business activity to get out of a depression and increase production

Reform

To change practices to ensure another depression would never happen.

Buying on the Margin

Purchasing stocks with borrowed money with the intent of making a profit and repaying the loan when the stock prices rise

Hoovervilles

Depression shantytowns, named after the president whom many blamed for their financial distress

Hawley Smoot Tariff

High tax on imported goods to stimulate American manufacturing, but triggered retaliatory tariffs from other countries.

Public Works Administration (PWA)

Helped construction workers get jobs doing public projects (highways, bridges, sewers)

Securities and Exchange Commission (SEC)

monitors the stock market and enforces laws regulating the sale of stocks and bonds

National Labor Relations Act

Established National Labor Relations Boar to protect the rights of workers to organize labor unions and to take part in strikes.

Dr. Francis Townsend

American physician and social reformer whose plan for a government-sponsored old-age pension was a precursor of the Social Security Act of 1935.

Huey Long

"Kingfish" Rep. senator of LA; pushed "Share Our Wealth" program and make "Every Man a King' at the expense of the wealthy; assassinated

Father Charles Coughlin

Roman Catholic priest who used popular radio sermons to criticize Roosevelt. Blamed Jews for the Depression.

National Recovery Administration (NRA)

New Deal agency that promoted economic recovery by regulating production, prices, and wages

Herbert Hoover

31st President of the United States (1929-1933)

Blamed for the Great Depression.

Rugged Individualism

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

Government

Who FDR and the New Deal programs relied on to help achieve social and economic change; different from laissez-faire policies of the 1920s