Chapter 25 The Great Depression Vocabulary

Overproduction Excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment.

Buying on Margin Using stock as collateral to purchase more stock

Black Tuesday October 29, 1929 investors sold over $16 million worth of stock for prices lower than their worth which caused the Stock Market to crash.

Rugged Individualism President Hoover’s belief that each individual is responsible for helping themselves, not the government

Hoovervilles Shantytowns patched together out of crates, cardboard and tarps where newly homeless people lived

Dust Bowl A period of severe dust storms causing major ecological and agricultural damage to American prairie lands in the 1930s, particularly in 1934 and 1936. The phenomenon was caused by severe drought coupled with decades of extensive farming without crop rotation.

Okies Farmers (many form Oklahoma) who moved to California for better living conditions and jobs during the Dustbowl

Reconstruction Finance Corporation (RFC)- One of Hoover’s responses to the Depression, it loaned money to financially troubled businesses to keep them afloat to help prevent further declines in the business cycle

Bonus March May 1932-WWI veterans camped out and demanded bonus payment due in 1945 to be paid early

Brain Trust experts from every field used by FDR to problem solve and help develop solutions to the Depression Era problems

Fireside Chat Radio talks given by FDR to explain what was going on in the nation and get support for his programs

Hundred Days March-June 1933—session of Congress that created many of the New Deal laws/programs

Bank Holiday Period when FDR closed all the banks in the U.S. in order to inspect their functionality, only financially sound banks were allowed to reopen.

New Deal Roosevelt’s program to end the Great Depression. It focused on relief (ease individual suffering) recovery (get the economy growing) and reform (prevent future crisis).

Direct Relief Immediate aid to prevent starvation and revolt

Indirect Relief Work relief—create jobs to cut unemployment

Your job only pays $20 a week Deficit Spending Using borrowed money to fund government programs, which allows the government to spend more money than it takes in Already owe me $25 Borrow $200 more Now you owe $225 Your job only pays $20 a week