Unit 2: 1929- 1945

Depression and War

What do we do now?

You know what it takes to be able to DO history properly:

Think about the origin/perspective of the time period studying

Be able to determine causes and consequences (short term and long term)

What evidence do we need to learn about this time event, person, etc?

What is valuable and limiting in regards to the sources?

What is the narrative that historians have created for us? Any contrasts?

The Great Depression

The Roaring Twenties to The Great Depression? Something isn’t right

Unprecedented economic downturn that last from 1929- 1939 (but the war doesn’t cause the end of the Depression)

Many thought the downturn would be short

According to many worldwide statistics only the USA suffered worse than Canada

- 1929- 1933 GDP in Canada fell by 42%- 1929- 1933 personal income fell by 51%- the average economic figures in the 1920’s were 57% higher than in 1933

Causes- Domestic

Laissez-faire economics- prosperity is best achieved when the government stays out of all economic activities

Many businesses in the 1920’s continued to produce despite declining sales in the mid 1920’s- overproduction

Owners slowed down production, laying off workers- makes things worse- no money for spending, increased laying off of workers and on and on

Causes- International

Protective tariffs imposed in the late 1920’s- protect domestic produced goods

Increase the costs of goods produced in other countries- domestically produced goods are therefore more attractive to the consumer

When the USA started protectionism, so did the others- therefore almost impossible to trade

Particularly hard for Europe- most had come to rely on selling their goods to the USA- and that led to less money to pay off their own debts (especially Germany)

Causes- Canada

USA tariffs were very hard on Canada (sound familiar...NAFTA...Trump…)

Canada relied on exporting raw materials to other countries

American tariffs basically closed off the market to Canada- Europe was not buying our raw materials

Particularly hard for Canadian farmers- 1920’s farmers did very well as Europe was hungry for our food (wheat)- late 1920’s they had recovered and the USA did not buy our agriculture in a large enough quantity

Of course this was reduced even more by the tariffs imposed

Causes- Environmental

Decreased international demand for agricultural goods

Add to that mix a 7 year drought from 1930- 1937

Severe dust storms due to the drought, destruction of topsoil

Added to that, massive swarms of locusts and grasshoppers

Saskatchewan 1937- zero crop production- 95% of rural municipalities were bankrupt

And there is also this to consider...

How could it happen over there...