1.We will describe some key social, economic, and political events, trends, and developments in Canada between 1929 and 1945, and explain how they affected the lives of people in Canada.

1.You will describe some key economic trends and developments in Canada during this period, and explain how they affected the lives of people in Canada.

What were the causes and consequences of the stock market crash of 1929 and the depression that followed?

What caused the greatest economic disaster in human history?

October 29, 1929, will always be known as Black Tuesday, the day the stock market crashed and the official beginning of the Great Depression. On this day prices of stocks plummeted to historical lows. When the stocks never recovered, panic began to ensue throughout the Western World. Everyone was trying to sell their low stocks to regain some of their money, but no one was interested in buying low stock. This led many to bankruptcy.

The stock market crash was just the beginning. Many banks had invested their clients’ money in the stock markets, so after the crash, banks began to panic. Banks began to close their doors to clients. This started another panic. Citizens began rushing to their banks demanding all their money before it was all gone. This bankrupted many banks, so banks began to shut their doors completely. In many cases, people who did not get to the bank on time, lost all their family savings.

"In other periods of depression, it has always been possible to see some things which were solid and upon which you could base hope, but as I look about, I now see nothing to give ground to hope— nothing of man." Former President Calvin Coolidge, 1932

The worst economic disaster in human history was particularly harmful to Canada because the United States was its largest trading partner. Export prices plummeted. The price of lumber fell 32% from 1929 to 1932, and cattle prices declined 63%. Canadian automakers also saw their exports collapse to 13,000 vehicles in 1931 from 102,000 in 1929.

"If, with all the advantages I've had, I can't make a living, I'm just no good, I guess.“ – An unemployed Texas schoolteacher, 1933

Farmers in the Prairies were hit especially hard. They were terribly affected by the drop of wheat prices. Also, in Western Canada, drought and poor soil made matters much worse. Farmers in south-eastern Alberta, southern Saskatchewan, and southwestern Manitoba abandoned their farm land and moved west to British Columbia and northwest Alberta.

“Trade recovery now complete, President told. Business survey conference reports industry has progressed by own power. No Stimulants Needed! Progress in all lines by the early spring forecast.” – New York Herald Tribune, January 24, 1930

Many people believed that this would be a short economic crisis. However this depression lasted well into the last 1930’s. Between 1929 and 1939, the gross national product dropped 40%. In comparison the united States dropped 37%. At its worst in 1933, unemployment in Canada reached 27% and many businesses shut down. Many citizens went bankrupt. In 1929, corporate profits in Canada exceeded $398 million. These profits ropped to $98 million in a few short years.

“We do not dare to use even a little soap, when it will pay for an extra egg or a few more carrots for our children.” - An unemployed father in Oregon, 1930