The Great Depression and The New Deal Flashcards
Define the Great Depression
The economic crisis beginning with the stock market crash of 1929 and continuing through the 1930s
How credit worked and give an example of an item purchased on credit
buying on credit was the “item” that lead to the great depression.
people started buying luxury items
people borrowed money to invest in stocks
thought they could repay the loan when they sold their stocl or profit
b/c of so much buying; people were making ALOT of money
stores sold LOTS of goods; that made value of stock rise
at some pojnt; people could no longer buy things b/c they had spent all their money into paying off their credit
inflamation started; that lead && started the great depression
margin buying
buying now and paying later for something
speculation
investing with hopes of turning a profit
bank run
when people start to lose faith in their banks so they try to withdraw their money
bank panic
when many people start withdrawing their money from the banks because they have lost confidence in it
Dow Jones Industrial Average
price weighted average of the stocks in the market
black tuesday
The day the economy severely crashed
over speculation of the stock market and margin buying
The Hundred Days
When FDR introduced many new acts and administrations to the country after creating a bank holiday in hopes of repairing the nation’s economy
The New Deal
The set of federal programs launched by FDR
The Dust Bowl
- Great Plains
- Caused by overproduction of farmland and droughts
- Caused death, farmers lost their farms, crops weren’t produced
Herbert Hoover
President from 1929-1933
- Believed the crash was part of the natural cycle of a capitalist government
- Directed little government action to do anything
FDR
- Elected in 1932
- Created the New Deal
Agricultural Adjustment Act
Provided aid to struggling farmers
-Paid farmers to destroy crops and livestock
Civilian Conservation Corps
- public work relief program
- Promoted environmental conservation
Works Progress Administration
- Job program
- built and/or renovated 125,000 public buildings, as well as many roads, bridges, parks, and airports
Social Security Act
- provided aid to the elderly
- 2% tax
Federal Deposit Insurance Corporation
-federal regulation of banking practices by setting up the FDIC to protect bank depositors’ money if the banks failed
Securities and Exchange Commision
-Federal regulation of the stock market by passing a series of laws and forming the SEC to pass these laws
Tennessee Valley Authority
The TVA implemented a far-reaching plan to bring electrical power and economic recovery to impoverished farmers
Federal Emergency Relief Administration
Congress gave direct relief by establish the FERA to provide $500 million in federal grants to state and local relief agencies
Political Ideologies
Liberalism-a political orientation that favors social progress by reform and by changing laws rather than by revolution
Conservatism-a political or theological orientation advocating the preservation of the best in society and opposing radical changes
-Radicalism-the political orientation of those who favor revolutionary change in government and society
Election of 1928
Hoover Won:
- Economy was booming under 8 years of Republican leadership and people didn’t want that to change
- Al smith lost- people didn’t like his catholic views
Election of 1932
FDR won
-People blamed Hoover for the effects of the depression
