1. The Great Depression
Part 1: Causes

2. Stock Market Crash Not a cause, more an effect that triggered the rest
Kind of like the assassination of Franz Ferdinand
Stock market dramatically overvalued
The bubble burst when confidence began to be lost in the value of
Tuesday, October 29th 1929, New York, Toronto & Montreal stock exchanges crashed

3. Business Cycle
P. 143 in textbook

4. Underlying Causes Overproduction Purchasing stock/buying on margin.
Purchasing on credit/high consumer debt
Overdependence on primary industries
High tariffs/limited trading partners
Dependence on the U.S.A. for trade

5. Overproduction

6. Purchasing Stock/Buying On Margin
Borrowing money to buy stocks
At the time, needed only a 10% minimum downpayment

7. High Consumer Debt
Buying on credit
Many people were in debt

8. Overdependence on Primary Industries
Canada’s economy was based heavily on primary industries
These primary resources were then exported

9. High Tariffs/Limited Trading Partners
Canada used tariffs to protect its own industry
But this also meant narrowing its trade options with other countries

10. Dependence on the U.S.A. for trade
At the time ~40% of Canada’s exports were to the USA (Now, 73%!)
An economic crash in the U.S. inevitably affects Canada.

11. Business Cycle

12. Underlying Causes Overproduction Purchasing stock/buying on margin.
Purchasing on credit/high consumer debt
Overdependence on primary industries
High tariffs/limited trading partners
Dependence on the U.S.A. for trade