KT Unit 3

Bank Failures: Bank failures refer to the collapse of banks that are unable to meet their financial obligations, leading to insolvency. This phenomenon was a significant factor during the Great Depression, as thousands of banks closed their doors, resulting in widespread loss of savings and a severe contraction in the availability of credit, which further deepened the economic crisis.

Black Tuesday: Black Tuesday refers to October 29, 1929, the day the U.S. stock market crashed, marking the beginning of the Great Depression. This catastrophic event resulted from a combination of over-speculation in stocks, excessive consumer debt, and economic imbalances. The crash led to widespread financial panic, loss of savings, and a severe downturn in the economy that affected millions of Americans.

Bonus March: The Bonus March was a significant event during the Great Depression when thousands of World War I veterans marched to Washington, D.C., in 1932 to demand early payment of a bonus promised to them. This event highlighted the desperation and economic struggles faced by many Americans during this period, as veterans sought assistance from the government in the face of widespread unemployment and poverty.

BOPS: BOPS, which stands for Balance of Payments, is a financial statement that summarizes a country’s economic transactions with the rest of the world over a specific period. It includes trade in goods and services, investment income, and transfers, providing insight into a nation's economic standing and its interaction with global markets. The Balance of Payments is crucial for understanding how countries manage their economic relationships, especially during significant downturns like the Great Depression.

Dow Jones Industrial Average: The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large publicly traded companies in the United States. It serves as a key indicator of the overall health of the U.S. economy and is often used to gauge investor sentiment and economic trends. During the Great Depression, the DJIA experienced drastic declines, reflecting the financial turmoil and lack of confidence in the economy at that time.

Dust Bowl: The Dust Bowl was a severe environmental disaster during the 1930s, characterized by extreme drought and poor agricultural practices that led to massive dust storms across the Great Plains of the United States. It caused significant economic hardship for farmers and contributed to the widespread suffering during the Great Depression, as many families lost their homes and livelihoods due to the inhospitable conditions.

Federal Reserve: The Federal Reserve, commonly known as the Fed, is the central banking system of the United States, established in 1913 to provide the country with a safer and more flexible monetary and financial system. It plays a crucial role in regulating the economy through monetary policy, controlling inflation, and managing interest rates, thus influencing economic stability during times of reform, economic turmoil, and crisis.

First Hundred Days: The First Hundred Days refers to the initial period of Franklin D. Roosevelt's presidency from March 9 to June 16, 1933, during which he implemented a series of ambitious programs aimed at combating the Great Depression. This time frame is marked by a flurry of legislation that sought to provide immediate relief, recover the economy, and reform the financial system, setting the stage for long-term recovery efforts. The actions taken during this period were crucial in restoring public confidence and establishing the foundation for the New Deal.

Franklin Delano Roosevelt (FDR): Franklin Delano Roosevelt, commonly known as FDR, was the 32nd President of the United States, serving from 1933 until his death in 1945. He is best known for leading the country during the Great Depression and World War II, implementing a series of programs and reforms known as the New Deal that aimed to provide relief, recovery, and reform to a struggling nation.

Great Depression: The Great Depression was a severe worldwide economic downturn that lasted from 1929 to the late 1930s, marked by a dramatic decline in industrial production, mass unemployment, and widespread poverty. It reshaped the American economy and society, leading to significant changes in government policies and international relations.

Hawley-Smoot Tariff: The Hawley-Smoot Tariff was a protective trade law enacted in 1930 that raised tariffs on imported goods to historically high levels. This legislation aimed to protect American industries during the Great Depression but ended up worsening the economic situation by stifling international trade and leading to retaliatory tariffs from other countries.

Herbert Hoover: Herbert Hoover was the 31st President of the United States, serving from 1929 to 1933, during the onset of the Great Depression. His presidency is often characterized by his belief in limited government intervention in the economy and voluntary cooperation among businesses and citizens to solve economic problems. However, Hoover's inability to effectively address the severe economic crisis led to widespread criticism and a significant decline in his popularity.

Hoovervilles: Hoovervilles were makeshift shantytowns that emerged during the Great Depression, named derisively after President Herbert Hoover, who was blamed for the economic crisis. These communities were built by homeless individuals and families, often from scrap materials, and symbolized the widespread poverty and desperation faced by many Americans during this time. The existence of Hoovervilles highlighted the failures of government response to the economic downturn and the struggles of ordinary citizens trying to survive.

Milton Friedman: Milton Friedman was an influential American economist and a leading figure in the field of monetarism, known for his strong advocacy of free-market capitalism and limited government intervention in the economy. His work during the mid-20th century brought attention to the role of monetary policy in managing economic fluctuations, especially during times like the Great Depression, where he argued that a mismanagement of the money supply contributed to the severity of the economic downturn.

New Deal: The New Deal was a series of programs and policies implemented by President Franklin D. Roosevelt during the 1930s in response to the Great Depression. It aimed to provide relief for the unemployed, recovery of the economy, and reform of the financial system to prevent future depressions, fundamentally reshaping the role of government in American society.

Okies: Okies were migrant farm workers, primarily from Oklahoma, who moved to California and other states during the Great Depression seeking better living conditions and job opportunities. This term is often associated with the Dust Bowl era, when severe drought and poor agricultural practices devastated farmlands, forcing many families to abandon their homes in search of a more stable life. The migration of Okies highlighted the social and economic struggles faced by many Americans during this period, and they became symbolic of resilience in the face of hardship.

Overproduction: Overproduction occurs when the supply of goods exceeds the demand for those goods, often leading to unsold products and economic downturns. During the Great Depression, overproduction was a significant factor contributing to the economic crisis, as industries produced more goods than consumers could buy, resulting in falling prices and widespread layoffs.

Public Works: Public works are government-funded projects aimed at constructing and maintaining infrastructure for public use. During times of economic hardship, such as the Great Depression, these projects played a crucial role in providing jobs and stimulating economic growth, while also improving community facilities like roads, bridges, and parks.

Purchasing Reduction: Purchasing Reduction refers to a significant decline in consumer spending and demand for goods and services, which can occur during economic downturns like the Great Depression. This phenomenon is marked by consumers opting to buy less due to financial constraints, loss of income, or lack of confidence in the economy. As purchasing power diminishes, businesses experience lower sales, leading to further economic contraction, job losses, and increased financial instability.

Run on the Banks: A run on the banks occurs when a large number of customers withdraw their deposits simultaneously due to concerns about the bank's solvency. This phenomenon is significant in the context of the Great Depression, as it highlighted the fragility of the banking system and led to widespread bank failures. The fear that banks would collapse caused panic among depositors, resulting in a vicious cycle of withdrawals that further destabilized financial institutions and exacerbated the economic crisis.

Stock Market Crash: The Stock Market Crash refers to the rapid decline in stock prices that occurred in October 1929, marking the beginning of the Great Depression. This crash was driven by a combination of speculation, overextension of credit, and a lack of regulation, leading to a loss of confidence among investors. The crash not only wiped out millions of investors but also had devastating effects on the American economy, triggering widespread unemployment and bank failures.




  1. Black Tuesday: Oct. 29, 1929 when the stock market crashed, the spark of the Great Depression

  2. Hoovervilles: Shantytowns during the Great Depression

  3. Reconstruction Finance Corporation:

  4. Norris-LaGuardia Anti-Injunction Act:

  5. Bonus Army:

  6. 20th Amendment:  

  7. Brain Trust: Group of intellectual young college students who composed most of FDR’s speeches and the New Deal

  8. New Deal:

  9. Hundred Days:  

  10. Glass-Steagall Banking Reform Act:

  11. Federal Deposit Insurance Corporation (FDIC):  

  12. Civilian Conservation Corps ( CCC):

  13. Federal Emergency Relief Administration ( FERA):

  14. Agricultural Adjustment Act (AAA):

  15. Court Packing Plan:

  16. Civil Works Administration:  

  17. Father Charles Coughlin: 

  18. Elenor Roosevelt: 1st Lady of FDR, activist and actively involved in helping during the Great Depression

  19. Francis Perkins:

  20. Mary Mcleod Bethune:  

  21. 21st Amendment:

  22. National Recovery Administration: 

  23. Public Works Administration: 

  24. Dust Bowl: a period of severe dust storms that occurred in the 1930s, damaging the ecology and agriculture of the American and Canadian prairies

  25. Grapes of Wrath:  

  26. Securities Exchange Act (Securities and Exchange Commission);

  27. Tennessee Valley Authority:

  28. Social Security Act:

  29. Wagner Act:

  30. Fair Labor Standards Act:  

  31. Congress of Industrial Organization:  

  32. Keynesianism:

  33. Schechter v. U.S:  

  34. Federal Housing Administration:  

  35. Huey Long: