RECOVERY Demand Increases Sales Rise Production Increases Wages Rise Prices Rise Profits Rise Employment Increases Prosperity Demand High Sales High Production High Wages High Inflation High Profits High Unemployment Low Recession Demand Declines Sales Decline Production Declines Wages Fall Prices Fall Profits Fall Unemployment Grows Depression (Severe & prolonged Recession) Demand Low Sales Low Production Low Wages Low Prices Low Profits Low Unemployment High The Business Cycle

Living Through the Great Depression Few were prepared for the severity or length 1/3 of Canadians were unemployed by 1933 Many more were “underemployed” (too few hours or paid too little) Malnutrition, starvation, etc Many men had to roam the country for work Dependence on government or charitable “relief” payments – kept low by the gov’t to discourage “laziness”

Effects Across the Country National income went down 40% from Central Canada – international competitors & small businesses destroyed The Maritimes – no market for fish The West (Prairies) were hit particularly hard Dependence on wheat (low prices) Drought (massive dust storms) Plague of Grasshoppers (ate crops)

Impact on Canadians Physical & psychological scars By 1933 (worst year): 30% unemployed, 20% on government relief (worse in rural areas) Industrial production cut in half (worst in the world) National income down almost 45% Many people’s faith in the capitalist, free- market system was shaken – started to consider other economic strategies/models (socialism, gov’t regulation)

Estimated Field Crop Values in Saskatchewan, YearValue 1925$368, $309, $348, $349, $235, $136, $70, $98, $76, $96, $114, $142, $52, $101, $190,000

A Comparison of Average Incomes Per Person, and 1933 Canadian Provinces B.C.$600$318 Alberta$550$215 Saskatchewan$475$133 Manitoba$465$237 Ontario$550$308 Quebec$400$224 New Brunswick$300$183 P.E.I.$285$157 Nova Scotia$325$208