1. Vocab

2.  Great Depression: A period, lasting from 1929-1940, in which the U.S. economy was in a severe decline and millions of Americans were unemployed.  Black Tuesday: A name given to October 29, 1929, when stock prices fell sharply.  Buying on Margin: The purchasing of stocks by paying only a small percentage of the price and borrowing the rest.  Deflation: Widespread fall in prices.

3.  Inflation: An increase in prices or decline in purchasing power caused by an increase in the supply of money.  Speculation: An involvement in risky business transactions in an effort to make a quick or large profit.  Supply & Demand: The forces that determine prices of goods and services in a market economy.

4.  Bank Holiday: a day or several days when banks are closed and depositor’s cannot withdraw money.  Depression: A very severe and prolonged contraction in economic activity.  Prosperity: A successful, flourishing, or thriving condition.  Dust Bowl: The region, including Texas, Oklahoma, Kansas, Colorado, and New Mexico, that was worthless for farming by drought and dust storms during the 1930’s.  Foreclosure: To take away the right to redeem (typically houses or farms).

5.  Bonus Army: A group of WWI veterans and their families who marched on Washington D.C. in 1932 to demand the immediate payment of a bonus they had been promised for military service.  Direct Relief: The giving of money or food by the government directly to needy people.  Parity: A government supported level for the prices of agricultural products, intended to keep farmers income steady.  Shantytowns (Hoovervilles): A neighborhood in which people live in makeshift shacks.

6.  Deficit Spending: A government’s spending of more money than it receives in revenue.  Demagogue: A person who gains power and popularity by arousing the emotions, passions, and prejudices of the people.  Fireside Chats: The radio talks made by Franklin D. Roosevelt whole he was president.  New Deal: President Franklin Roosevelt program to alleviate the problems of the Great Depression focusing on relief for the needy, economic recovery, and financial reform.