“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.