1. What Caused the Great Depression in Canada? Lead Up to Hardship

2. OVERPRODUCTION  Good times had encouraged producers to increase production beyond what markets demanded  Stockpiling of goods  Workers laid off, have less money to spend, buy fewer goods  Good times had encouraged producers to increase production beyond what markets demanded  Stockpiling of goods  Workers laid off, have less money to spend, buy fewer goods

3. Primary products dependence  Economy depended on staple products- wheat, fish, minerals, pulp and paper  Competition from other producers of same products reduced demand and price on world market  Wheat Especially Vulnerable  Economy depended on staple products- wheat, fish, minerals, pulp and paper  Competition from other producers of same products reduced demand and price on world market  Wheat Especially Vulnerable

4. Cutting Grain in Alberta c.1920

5. Environmental issues  Poor farming practices and drier climate led to drought  Top soil dried up and blew away in great dust storms  Affected Palliser’s triangle in Canada  In the prairies known as the dust bowl  Poor farming practices and drier climate led to drought  Top soil dried up and blew away in great dust storms  Affected Palliser’s triangle in Canada  In the prairies known as the dust bowl

9. Dependence on USA  Primary market so downturn there affects us (reduced trade)  Our economic good times depended on continued sale of staple exports to USA  Primary market so downturn there affects us (reduced trade)  Our economic good times depended on continued sale of staple exports to USA

10. protectionism  Protective tariff: high taxes on goods coming in from other countries  Tariffs shut Canada out of world markets  Exports plummeted, slowed down trade internationally  Protective tariff: high taxes on goods coming in from other countries  Tariffs shut Canada out of world markets  Exports plummeted, slowed down trade internationally

11. Canadian international paper company mill at three rivers, Quebec, 1930

12. Worldwide Depression  US lent money during and after WWI  At the end of WWI European nations owe money to the U.S.  Nations depended on selling products to repay loans  Nations lose ability to repay loans with U.S. protectionism  US lent money during and after WWI  At the end of WWI European nations owe money to the U.S.  Nations depended on selling products to repay loans  Nations lose ability to repay loans with U.S. protectionism

13. Buying on credit  Buy now pay later motto  New consumer goods paid for in installments  With job losses people unable to pay for credit purchases  Buy now pay later motto  New consumer goods paid for in installments  With job losses people unable to pay for credit purchases

14. Buying on margin  Stock markets active - Toronto, NY, Montreal  When purchasing stocks some Canadians put 10% down with the idea of paying back the rest as soon as stocks go up in price and you sell them  Investors sought to cash in on high prices but flooded market and prices crashed  Stock markets active - Toronto, NY, Montreal  When purchasing stocks some Canadians put 10% down with the idea of paying back the rest as soon as stocks go up in price and you sell them  Investors sought to cash in on high prices but flooded market and prices crashed

15. Crowds gather on wall street Black Tuesday Oct. 29, 1929

16. Economic collapse  Stock market cash didn’t cause depression but did make it worse  Investors who couldn’t repay stock debt went bankrupt  Canada plunged into depression- dirty thirties  Stock market cash didn’t cause depression but did make it worse  Investors who couldn’t repay stock debt went bankrupt  Canada plunged into depression- dirty thirties

17. Review questions