The period following the stock market crash that was the longest, most severe depression yet...it caused far more business failures and unemployment and affected more people.
Dow Jones Index
The index of stock prices that fell from its high of 381 before the crash to an ultimate low of 41.
One of the causes of the Great Depression; uneven distribution of wages compared to the large increases in productivity and corporate profits
Buying on Margin
Allowed people to borrow most of the cost of the stock, making down payments as low as 10 percent
Hawley-Smoot Tariff (1930)
A schedule of tariff rates that was highest in history; set tax increases ranging from 31% to 49% on foreign imports
Created in 1929 before the crash but supported and enacted to meet the economic crisis and help farmers. Authorized to help farmers stabilize prices by temporarily holding surplus grain and cotton in storage.
Reconstruction Finance Corporation
A federally funded, govt owned corporation created by Congress in 1932 as a measure for propping up faltering railroads, banks, life insurance companies, and other financial situations.
Bonus March (1932)
A march of 1000 unemployed veterans who were soon joined by many others to demand immediate payment of the bonuses promised them at a later date.
Franklin D Roosevelt
The Democratic nominee for the election of 1932, the worst year of the depression; he pledged a "new deal" for the American people, the repeal of Prohibition, aid for the unemployed, and cuts in govt spending.
Passed in Feb 1933 and ratified in oct 1933 this amendment shortened the period between presidential election and inauguration.
First New Deal
Established to serve the "three Rs" Relief for the people out of work, Recovery for business and the economy as a whole, and Reform of American economic institutions
A group of university professors whom Roosevelt turned to for advice on economic matters
During this period, Congress passed into law every request of FDR, enacting more legislation than any single congress in history.
The president ordered this on March 6, 1933 to restore confidence in all the banks that were being closed due to the Great Depression
Repeal of Prohibition
FDR kept his campaign promise and repealed the prohibtion of alcohol with the twenty-first amendment which nullified amendment 18