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. Speculation
Making 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 Deal
A 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 Security
This program was
established to help
provide monetary
aid for Americans
starting at age 65.
U.S. citizens make a small
payment from every
paycheck to avoid, as
Roosevelt put it, “a povertyridden old age.”
• 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.
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, and
aircraft
carriers.
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.