Depression and New Deal Review Flashcards
Stock Market Crash –
sharp decline in stock prices that started in 1929 and was one of the main causes of the Great Depression
Margin Buying
purchasing stock on credit (borrowing money to buy stock)
Dow Jones Industrial Average-
formula that tracks the stock performance of 30 large and influential companies. The DJIA is often used as an indicator of the overall performance of stocks.
Depression
a lengthy or severe recession (when the economy is contracting/struggling)
Laissez-Faire
the idea that the government should not intervene or interfere with the economy or the free market. Laissez-faire proponents believe that the government intervention harms the economy. Supporters of laissez-faire argued that the best way to get the economy to recover during the Great Depression was to leave it alone.
Bank Failure/Panic.Runs
Bank failure is when a bank closes down because too many of the loans that they made will not be paid back. During the 1930s, millions of people lost their savings because of bank failures. Bank runs are when people panic and try to withdraw all of their money from a bank. Bank runs caused many bank failures in the 1930s because banks cannot function without deposits for money for the banks to lend.
Dust Bowl
Bank failure is when a bank closes down because too many of the loans that they made will not be paid back. During the 1930s, millions of people lost their savings because of bank failures. Bank runs are when people panic and try to withdraw all of their money from a bank. Bank runs caused many bank failures in the 1930s because banks cannot function without deposits for money for the banks to lend.
Huey Long
was a radical New Deal critic that proposed the “Share our Wealth” program. Long wanted to tax all incomes beyond $1 million to fund a minimum income of $2500 for all Americans. Long’s proposal was never followed but the support for Long increased pressure on Roosevelt to do more for the poor.
Rugged Individualism
was a radical New Deal critic that proposed the “Share our Wealth” program. Long wanted to tax all incomes beyond $1 million to fund a minimum income of $2500 for all Americans. Long’s proposal was never followed but the support for Long increased pressure on Roosevelt to do more for the poor.
Bonus Army
Group of WWI veterans and their families that camped in Washington in 1932 and refused to leave until their service bonuses were paid. The bonuses were due to be paid in 1945 but the veterans wanted the money in 1932 because so many were unemployed. President Hoover ordered the army to force the veterans to leave and several veterans were killed. The violent removal of the Bonus Army intensified Hoover’s unpopularity and contributed to his defeat in the election by Franklin D. Roosevelt.
New Deal
The laws and programs created by Franklin Roosevelt in the 1930s are collectively referred to as the New Deal. The New Deal was designed to end the Great Depression and create reforms to prevent a future Depression. The economy improved during the New Deal years but did not fully recover until WWII.
CCC- Civilian Conservation Corps
New deal program that mostly hired young men to plant trees and build roads and parks
WPA- Works Progress Administration
New deal program that mostly hired young men to plant trees and build roads and parks
AAA- Agricultural Adjustment Act
government program that helped to increase crop prices by paying farmers to destroy crops and lives stock as well as to leave sections of land unplanted. The idea was to reduce farm production so that prices would increase and farmers could profit.
FDIC- Federal Deposit Insurance Corporation
restored confidence in the banking system by insuring the first $5,000 deposited in a bank. The FDIC still insures bank deposits today so it a great example of a New Deal reform.
