1. Overproduction The result of mass production Supply outgrew demand and products sat unwanted in warehouses An agricultural “boom” worldwide in the late 20’s reduced the demand for Canadian grain in Europe

2. Over reliance on exporting Our “staple” products were no longer wanted overseas Without an international market to sell our goods to, producers went broke

3. Drought – “Dustbowl” After the boom agricultural years of the 20’s, a severe drought hit the usually fertile prairie provinces Little rain fell from 1932-1939, farmers lost their homes and their income

4. Dependence on USA We invested in US businesses, bought their goods through the 20’s When their economy took a turn for the worse, ours followed quickly

5. Stock market crash 1929 Speculation and buying on margin led to a decline in investor confidence A massive sales of shares caused stock prices to plummet, ruining the fortunes of many

6. Protectionism & Tariffs “Isolationist” policies in the post WWI world Massive “duties” were raise on imports and exports in an attempt to “protect” domestic economies International trade virtually ceased

7. Debt from WWI Canada’s debt from WWI soared to over 2 billion dollars