Great depression and new deal

buying on a margin

an individual paying for a stock. with a small amount of their own monney

buying on credit

buying every day items on a small amount of acutal money

New deal

roosevelts plan to get the us out of the depression

Relief

Get people into jobs, stop the downward spiral of economy

CCC, TVA, WPA, EBRA

Recovery

get economy growing and stable

AAA, NRA, Wagner act

Reform

prevent problems that caused depression

SEC,FDIC SSA

CCC

target audiance was young men

worked on environmental programs to get youth off the streets

planted trees and made roads

EBRA

shut down failing banks - made sure they could reopen successfuly

didnt close down healthy banks

TVA

young men

created dams to prevent flooding as well as give power to rural areas

SEC

investigate stock market

make sure they reported accurate status

AAA

unconstitutional ruling for farmers to kill tons of pigs without selling them to increase demand and raise prices

put money in farmers wallet

NRA

no competition -uniform prices

minimum wages

FDIC

restores peoples faith in banks

gov protects 150000 of peoples savings

Wagner Act

promoted joining unions and collective barganing

WPA

vast amounts of jobs for everyone

SSA

social security for disabled people, retirement, unemployment compensation

money in peoples wallet

Trickle down economics

when you give monet to the rich they will give the money back to the poor

this feeds economy

Pump up economics

give money to poor→ they spend more→ buisnesses need more workers bc of demand→more money in economy

Deficit spending

spending more money then it recieves in spending

Multiplier effect

initial spending changes trigger disportional economic output

loss of jobs→no money→no spending→ companies down→job cuts→no more jobs

Buisness cycles

recessions are normal

Bonus Army

veterans of ww1 looking for their promised bonus now because they have no money nor jobs

met with violence

The dust bowl

extreme droubt in great plains led to dust storms

farmers had to sell land and move west

Speculation

Recording value of company higher then actual worth because your only predicting your future value

Herbert Hoover

Laissez Faire gov.

rich should fix economic issues, trickle down., hoover vill, 1928-1931

Franklin Roosevelt

Heavy gov involvement, their responsibilites, pump up, federal work projects/new deal, 1932-?

Criticisms of the new deal

wasnt the major fix for the depression

brought us into more debt

what was the worst year of the depression

1933

unemployment was at 25% 33000 buisnesses closed

Causes of great depression

wealth inequality(65% were below poverty level)

overproduction in farming (to much food not much demand)

Buying on credit (false sense of prosparity)

stock market practices (unethica proceedures)