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The Causes of the Great Depression in Canada
Much of what led to the Great Depression of the 1930's was a result of the prosperity of the 1920's. Through industrialization the economy had changed in so many ways that people did not know what the future held. This uncertainty and optimism led to these underlying causes of the Great Depression:
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1. Canada’s economy relied heavily on exports to other countries 2
1. Canada’s economy relied heavily on exports to other countries 2. European economies were still weakened by the effects of WWI 3. Overdependence on the United States as a market and a source of investment funds
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4. Overproduction of goods- from wheat to manufactured products 5
4. Overproduction of goods- from wheat to manufactured products 5. On-margin stock purchasing (borrowing money to buy shares) 6. Crash of the New York Stock Market, October 29, 1929
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