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Black Tuesday
Black Tuesday kicked off the Great Depression. At this date, the stock market prices fell sharply. In total, the stock investors lost $14 billion. -
Buying on Margin
The reason why the stock market investors could afford to invest in the stocks, was because they were buying stocks on "margin". This meant that they would only pay a small percentage (10-20%) of the price directly, and then pay the rest later. -
Business cycle
The time during the great depression, as well as before and after, can be visualized through a "business cycle".
The peak of the business cycle is called "Prosperity". The decrease is called "Recession". The Trough (bottom) is called "Depression". And the increase is called "Recovery". The sharp drop was stimulated by "Credit" (Buying on margin). The "New Deal" helped the economy get back up after the "Great Depression". -
Herbert Clark Hoover
31st president of the White House. Believed in non-governmental aid and that it would be healed by local organizations and volunteers. Hoover was blamed for the Depression and shantytowns were often referred to as “Hoovervilles”. Newspapers used by hobos were also named “Hoover blankets”. -
Dust Bowl
Southern region in the United States that was struck by extreme droughts as well as dust storms, around Texas to Nebraska. People and livestock were killed and it forced many into migration to find jobs as well as better living conditions. Soil Erosion Service (NRCS), and Prairy States Forestry Project were established by FDR to stop the drought. For example they planted trees as windbreaks. -
Causes of the Great Depression
Factories and farms overproduced goods, credit was overused, people bought stocks on margin, risky bank loans. -
Hawley-Smoot Tariff Act
Act of implementing protectionist trade policies to provide revenue as well as encourage American industries and protect American labor. Raised tariffs on over 20.000 imported goods. -
Hoover Dam
Originally named “Boulder Dam”, Hoover Dam was organized and created by Herbert Hoover to provide jobs for people as well as power during the Great Depression -
Franklin D. Roosevelt
Roosevelt beat Herbert Hoover 1932 and became the president of the United States. He was a liberal and was described as energetic, compassionate, confident and feared no one. Created a "Brain Trust" (experts to advice him beyond the cabinet). Ordered Bank Holiday to inspect the banks. He was elected president 4 times. Worked to maintain a balanced budget and cutting taxes, then wait for recovery. Created New Deal programs: Relief, Recovery, Reform. Repealed 21st amendment. -
Bonus Army Conflict
World War 1 veterans who gathered up in Washington, DC, to demand their immediate bonus payment for serving during the war to alleviate the hardship during the Great Depression. Herbert Hoover arrested many of the veterans and was therefore often disliked by many Americans. -
New Deal
President Franklin D. Roosevelt's programs to heal the issues caused by the Great Depression focusing on relief for needy, economic recovery, and financial reform. Basically support for farmers, unemployed, youth & elderly -
Emergency Banking Act
The “EBA” was an act to provide relief in the existing national emergency in banking during the Great Depression, but also for other purposes. -
Glass Steagall Act
Prohibited commercial banks from participating in investment banking business. Was passed to counter the closure of 5.000 banks during the Great Depression -
Fireside Chats
FDR’s radio station where he updated the Americans on his actions as a president -
Agricultural Adjustment Act
“AAA” was an act in which farmers were asked to reduce production and destroy surpluses -
Federal Deposit Insurance Corporation
The FDIC was a government insurance for accounts in case a bank fails. -
21st Amendment
Amendment added to abolish Prohibition -
Works Progress Administration
Part of the New Deal, created governmental jobs for thousands of Americans were they built infrastructure projects. -
Social Security Act
Created basic right to a pension in old age, as well as insurance against unemployment.
