“Prosperity and Depression of 1920's - 1930's in the USA.”

Presenter: Cyorny Iliya, 1LM3

Depression

A severe and prolonged downturn in economic activity

• A short rise in price of a stock which already suffered a fall.

High level of unemployment

Banks were closed

People lost their investments

Herbert Hoover

• a shanty town

Hobo

Causes

• malfeasance by bankers and industrialists, or incompetence by government officials

• underconsumption and over-investment (causing an economic bubble)

• These manipulations caused a disbalance between demand and supply

National recovery administration

Harry Hopkins • Hopkins made it his

mission to strengthen ties between the Roosevelt administration and the business community. While Roosevelt believed in complete reform (The New Deal), Hopkins took a more administrative position; he felt that recovery was imperative and that The New Deal would continue to hinder recovery.