Canada and the Great Canada and the Great Depression: 1930sDepression: 1930s

Consumer-Based SocietyConsumer-Based Society Canada had evolved into a mass, Canada had evolved into a mass,

consumer society by the 1920s.consumer society by the 1920s.

Manufacturers were turning out consumer Manufacturers were turning out consumer goods and new labour-saving devices that goods and new labour-saving devices that were being gobbled up by anxious buyers.were being gobbled up by anxious buyers.

Canadians wanted to participate in a Canadians wanted to participate in a lifestyle that included new appliances, lifestyle that included new appliances, cars, and entertainment.cars, and entertainment.

However, things were changing…However, things were changing…

The Health of the EconomyThe Health of the Economy

The Canadian The Canadian economy - and economy - and indeed the world indeed the world economy - was in economy - was in poor shape well by poor shape well by October 29, 1929 October 29, 1929

Over Production Over Production

One underlying economic problem One underlying economic problem was that wages and demand were was that wages and demand were outpaced by production and supply. outpaced by production and supply.

Manufacturers, in their frenzy for Manufacturers, in their frenzy for greater profits, simply produced greater profits, simply produced more goods than what could be more goods than what could be purchased. purchased.

Results of Over ProductionResults of Over Production

Lead to layoffs and Lead to layoffs and downsizing of downsizing of companies. companies.

Many businesses Many businesses would simply have would simply have to shut down to shut down production. production.

Easy Money and CreditEasy Money and Credit

Following WWI, Following WWI, Canada and in the Canada and in the world needed money world needed money to convert to peace-to convert to peace-time production. time production.

They raised it by going They raised it by going into debt, either by into debt, either by borrowing from banks, borrowing from banks, selling bonds, or selling bonds, or offering shares on the offering shares on the stock market. stock market.

Results of Credit Results of Credit

Eager investors, Eager investors, optimistic about the optimistic about the future, gobbled up the future, gobbled up the offered shares.offered shares.

When they went to When they went to sell their stocks they sell their stocks they struggled to find any struggled to find any buyer, even offering buyer, even offering shares that had been shares that had been worth dozens of worth dozens of dollars for a few dollars for a few pennies. pennies.

Black Tuesday: Stock Market Black Tuesday: Stock Market CrashCrash

On October 24, 1929, almost 16.5 million On October 24, 1929, almost 16.5 million shares were sold as panicked investors shares were sold as panicked investors attempted to get pennies on stocks that attempted to get pennies on stocks that had been worth fortunes before. had been worth fortunes before.

There was a sudden realization that all There was a sudden realization that all those rising stocks were illusionary. those rising stocks were illusionary.

Shares lost half their value, or over $9 Shares lost half their value, or over $9 billion. In a single day! billion. In a single day!

Result of Black TuesdayResult of Black Tuesday

As the prices As the prices plummeted, fear plummeted, fear and panic rose. and panic rose. Many investors lost Many investors lost their life savings. their life savings.

Resource-Based Economy Resource-Based Economy

About one-third of About one-third of Canadians still derived Canadians still derived their income from their income from farming, with wheat farming, with wheat production being the production being the most important. most important.

Immediately after Immediately after World War One, a World War One, a bushel of wheat bushel of wheat fetched $2.45 fetched $2.45

Changing Wheat Prices Changing Wheat Prices

In 1932, the price of In 1932, the price of wheat plummeted to wheat plummeted to 34 cents a bushel. 34 cents a bushel.

That was a disaster That was a disaster for the Prairie for the Prairie farmers, hundreds of farmers, hundreds of whom lost their whom lost their farms. farms.

The High Tariff Trap The High Tariff Trap

In the 1920s, In the 1920s, governments governments raised tariff raised tariff barriers hoping to barriers hoping to protect jobs within protect jobs within Canada. Canada.

Results of Higher Tariffs Results of Higher Tariffs Different national Different national

governments governments competed with one competed with one another to raise ever another to raise ever higher and higher higher and higher tariffs. tariffs.

Made the cost of Made the cost of trading with other trading with other Countries extremely Countries extremely expensive. expensive.

““Dust Bowl”Dust Bowl”

During the 1920s, During the 1920s, Saskatchewan was one of Saskatchewan was one of the most prosperous the most prosperous farming areas in the farming areas in the world. world.

Drought conditions first Drought conditions first appeared in 1928 but appeared in 1928 but grew steadily worse. grew steadily worse.

In 1928, precipitation was In 1928, precipitation was half what had been the half what had been the previous year. previous year.

Result of the “Dust Bowl”Result of the “Dust Bowl”

The drought The drought continued for the next continued for the next eight years and as it eight years and as it did, vital subsoil did, vital subsoil moisture disappeared. moisture disappeared.

About one quarter of About one quarter of all of Canada's farm all of Canada's farm land was affected by land was affected by drought. drought.

Final Result Final Result

30% of the labour 30% of the labour force within force within Canada were Canada were unemployed. unemployed.

Individual ActivityIndividual Activity It is now your job to rank the It is now your job to rank the

different causes of the Great different causes of the Great Depression from the one that had Depression from the one that had most impact, all the way to the cause most impact, all the way to the cause you think had the least impact.you think had the least impact.

You must justify and explain why you You must justify and explain why you placed them in the order that you placed them in the order that you did. did.