Vocabulary: The Great Depression

& the New Deal

1. Great Depression

The time period following the “Roaring 20’s” in which 25% of the United States’ workers were unemployed.

2. Herbert Hoover

He was president of the U.S. when the stock market crashed. Ex: His refusal to provide funds for the unemployed during the Depression was based on the belief that it was not the role of the government to control the economy.

3. Franklin D. Roosevelt

He served as president of the U. S. during the Great Depression and served as Commander in Chief during World War II.

-He introduced many social welfare programs that are still in use today.

4. SpeculationMaking an investment

that is risky but might bring you big earnings based on a feeling of optimism. – Ex: During the 20’s many

Americans bought stocks on credit (or margin) and when the stocks fell, they could not pay back their loans; this caused many banks to close.

5. Stock • A single share of

a company or corporation a person has invested in.

• ex: The more stocks a person owns, the more they can profit if that business does well, however; if the business does poorly or fails, an individual can lose some or all of the money he or she has invested.

6. Stock Market• This is a place where

anyone who wishes to may buy “shares” of a business that is traded publicly.

– Ex: If a business does well, a “share” goes up in value; if the business does poorly, the “share” goes down in value. Buying stocks can be very profitable, but it is also very risky.

7. Federal Reserve

• The “banker’s bank;” where private banks are required to keep a portion of their money, can get loans, & where the federal government keeps its money.

•  

– The job of the FED is to keep private banks from closing & keep the economy healthy. But in 1929, it underestimated how bad the problem was and refused help small banks- many went bankrupt.

8. New DealA series of new laws

and social welfare programs introduced by President Roosevelt as a way to help pull America out of the Great Depression and put citizens back to work.

9. Social SecurityThis program was established to help provide monetary aid for Americans starting at age 65.

• Ex: The current generation pays for the retirement of those currently over 65 and then when they reach retirement, their children will help pay for their retirement.

U.S. citizens make a small payment from every

paycheck to avoid, as Roosevelt put it, “a poverty-

ridden old age.”

10. Federal Deposit Insurance Corporation

(FDIC)

This federal organization was

formed to address banking safety

and restore confidence in

private banks.

11. Works Progress Admiration (WPA)

This New Deal program built

hospitals, schools, parks, airports, and

employed artists, writers,

musicians.

12. Public works Admiration(PWA)

This New Deal program built

ports,schools, bridges,

dams, andaircraftcarriers.

13. Civilian Conservation Corp (CCC)

This New Deal Program put three

million strong, young men to work on projects related

to conservation and the

development of natural resources

in the U.S.

14. Agricultural Adjustment Act (AAA)

This New Deal program

actually paid farmers not to

grow crops.

14. Tennessee Valley Authority (TVA)

This New Deal program built

dams to provide cheap electric power

to southern states.