Bell CPR Ford Imperial Oil Florida Lands Stock Market Prices

The Business Cycle: Boom and Bust

Depression Economic Analysis Figure 5.1.j When was the “trough” of the business cycle of the 1930s? Explain with reference to the trends shown in the graphs. Figure 5.1.i Which province had the biggest decrease in income? Which had the lowest? Wheat Yields How do the wheat yield data help to explain the above? Hypothesize – why do you think wheat production fell so dramatically?

The Vulnerability of the Canadian Economy, 1929 Too heavy a reliance on staple products About 80% of all of Canada’s staple products was sold outside the country the Canadian economy’s reliance on exports 33% of Canada’s GNP (Gross National Product) came from selling goods to other countries Nearly 40% of Canadian exports were sold to the United States over dependence on the United States as a market and a source of investment funds

easy money — credit was too easily available (example – buying stock on margin) RESULT: overproduction of goods — from wheat to manufactured products and high levels of debt global economic weakness — there would be a ripple effect from the weakness in other economies

The stock market crash of October was The first evidence of The Great Depression, but was not “The cause” It was a sign of fundamental economic weakness later — the weather — drought would devastate western Canada