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The Great Depression and New Deal

Terms in this set (49)

Herbert Hoover
Republican President from 1929-1933 at the start of the great Depression, he believed in rugged individualism. He had the key principle that the only way the economy will fix itself is by the people helping themselves, not getting help from the government. Hoovers attempt at fixing the the Great Depression, many Americans continued to suffer from the depression, and put the blame on their suffrage on Hoover.
Franklin D. Roosevelt(FDR)
Democratic President from 1933 to 1945, he believed in that the government will help the people to fix the economy, he created the "New Deal Plan", that created relief, recovery, and reform, to the economy, people, market, banks, and stocks. While Hoover wanted a balanced budget, FDR created a deficit spending, this is what allowed the New Deal to be funded. The New Deal by FDR was the first time that programs were funded and created by the US Government, and the government started to give aid to the people. This is what made FDR the "great" president he is to this day.
Bonus Army
Group of WWI vets. that marched to D.C. in 1932 to demand the immediate payment of their goverment war bonuses in cash.
Overproduction
Overproduction is the creation of too many of 1 product and the market is not willing to buy the product, thus creating a over production of the product, and creating an unbalance between supply and demand.
Collapse of the Global Economy
Tax on imports raised the cost the cost of foreign goods for Americans, and for tariffs ended world trade between countries
Unequal Distribution of Wealth
the wealthy didn't spend their money and the poor didn't have money to spend, this is because of the mass rate of unemployment, the run on banks, and low rates of spending.
Speculation on the Stock Market
A cause of the Great Depression. It happens when the value of the stocks fall dramatically and people can no longer pay back stockbrokers with the amount they owe.
Bank Failure
Caused by the stock market crash, and massive withdrawal. Over 20% of banks were closed, many states existed without a bank.
Underconsumption
During the great depression, consumers did not have enough money to buy various products and essentials. This hurt the economy even more for America.
Dust Bowl
Parts of Oklahoma, Kansas, Colorado, New Mexico, and Texas that were hit hard by dry topsoil and high winds that created blinding dust storms, those areas of the Great Plains were called that because winds blew away crops and farms, and blew dust from Oklahoma to New York destroying the main job for the south, farming.
100 days
The first 3 months of FDR's presidency where he passed many new programs to help the depression within a 100days.
Relief
aid given to the American public by the U.S government, this was a short term solution to the Great Depression.
Recovery
Programs to help rebuild and make the economy stronger, this was a long term solution to the Great Depression and was also to prevent another Great Depression from arising.
Reform
Program to prevent the disasters from the Great Depression, this was a permanent solution to the Great Depression.
Reconstruction Fiance Corporation
a agency established to provide emergencty money to banks, insurance companies and businesses
Federal Deposit Insurance Corporation
The corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance. which guarantees the safety of deposits in member banks. Set up to prevent "bank runs" and to keep money in banks, thus stimulating the economy. Also, at the time it insured individual deposits up to $5000, thereby decreasing the amount of bank failures and restored faith in the banks.
Public Works Project
government-funded projects to build public resources such as roads and dams.
Deficit Spending
FDR's administration was based on this concept. It involved stimulating consumer buying power, business enterprise, and ultimately employment by pouring billions of dollars of federal money into the economy even if the government didn't have the funds, and had to borrow money.
Direct Relief
Part of FDR's philosophy (along with work programs) to get out of the Great Depression; financial assistance to the poor and unemployed.
New Deal
term used to describe president Franklin Roosevelt's relief, recovery, and reform programs designed to restore the economy durning the Great Depression
prosperity
an economic state of growth with rising profits and full employment
Black Tuesday
October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.
Brain Trust
Group of expert policy advisers who worked with FDR in the 1930s to end the great depression
Depression
A long-term economic state characterized by unemployment and low prices and low levels of trade and investment
Stock Market
A general term used to describe all transactions involving the buying and selling of stock shares issued by a company.
unemployment
Measures the number of people who are able to work, but do not have a job during a period of time.
Fireside Chat
informal talks given by FDR over the radio; sat by White House fireplace; gained the confidence of the people
hardship
Difficulty; adversity
Hooverville
Shanty towns that the unemployed built in the cities during the early years of the Depression; the name given to them shows that the people blamed Hoover directly for the Depression.
Soup line/soup kitchen
When people lined up outside a soup kitchen waiting to get food
speculation
An involvement in risky business transactions in an effort to make a quick or large profit.
on-margin
to pay a small percent of a stock's purchase price with one's own money and finance the rest with a bank loan.
Migrant workers
people, typically farmers, who move from place to place to harvest fruits and vegetables
Why did the stock market crash in 1929? What were those days called when it crashed?
The crash of the stock market came about as a result of the debt ran up by people who were buying stock on margin. Buying on margin means that they would take out a loan to buy stock and this was being done by millions of people. The market eventually began to drop as people tried to sell off what stock they had so as to recover some money from their purchases; it plummeted and eventually crashed on 29th October 1929. 100 days.
Why did Herbert Hoover become increasingly unpopular as the depression dragged on?
As the U.S failed, American people looked to Hoover for leadership, many were starving, homeless and dying but Hoover refused to believe or give any government assistance to those who needed it. He believed that the people could help themselves and he also referred to the Great Depression as "a temporary hault in the prosperity of a great people." He also feared that by giving American people assistance it would inflate the federal budget and reduce the self-respect of the Americans reciving the aid. So instead of getting involved and helping out Hoover remained optimistic and kind of just let the people suffer.
What was the New Deal and what were its three major goals?
term used to describe president Franklin Roosevelt's relief, recovery, and reform programs designed to restore the economy durning the Great Depression
CCC
Civilian Conservation Corps. It was Relief that provided work for young men 18-25 years old in food control, planting, flood work, etc.
SSA
Social Security Administration
FDIC
Federal Deposit Insurance Corporation: a federally sponsored corporation that insures accounts in national banks and other qualified institutions
TVA
(Tennessee Valley Authority Act) Relief, Recover, and Reform. one of the most important acts that built a hyro-electric dam for a needed area.
AAA
Agricultural Adjustment Administration: attempted to regulate agricultural production through farm subsidies; ruled unconstitutional in 1936; disbanded after World War II
WPA
Work Progress Administration: Massive work relief program funded projects ranging from construction to acting; disbanded by FDR during WWII
Provide at least 3 causes of the Great Depression.
1) Stock market crash in 1929
2) Bank Failure
3) Reduction in Purchasing Across the Board
4) American Economic Policy with Europe
5) Drought Conditions
What does overproduction mean and how does this relate to the Great Depression?
Overproduction is the creation of too many of 1 product and the market is not willing to buy the product, thus creating a over production of the product, and creating an unbalance between supply and demand.
Discuss some of the problems with banks in the 1920s/30s and how did FDR restore confidence in them.
Banks used their customers' saving accounts to speculate on the stock market. FDR restored confidence in the people with the fireside chats
list 3 long-term effects the Great Depression/New Deal had on America
The FDIC, PWA and the SEC.
what were FDR's radio broadcasts called?
"Fireside Chats"
What were FDR's group of advisors called?
Brain Trust
What was the Dust Bowl, who was affected by it and how did the New Deal help the Dust Bowl Farmers?
heavy winds that caused dust to be pushed all over the country. people moved to california where they weren't wanted. Drought, soil, dried up, killed crops.
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