1. Review Budget Currency Revenue Expenditures Deficit Demand Supply
____ Money taken IN by the government
____ The money used in a particular country
____ The availability of a certain product
____ Any money SPENT by the government
____ A spending plan developed by the government
____ A budget where expenditures and revenues are equal
____ A situation where the government spends more than it takes in
____ An economy where individual producers/consumers determine the goods and prices
____ How badly people want a product
Budget
Currency
Revenue
Expenditures
Deficit
Demand
Supply
Balanced Budget
Market Economy

2. From the Roaring Twenties to the Dirty Thirties…
The Great Depression
From the Roaring Twenties to the Dirty Thirties…

3. After WWI: The Economy in the 20s
The world’s financial centre was New York
In the late 1920’s the economy was going very well: prosperity, lots of consumer goods, jobs, etc.
Most people from the middle and upper classes were purchasing stocks at an alarming rate and making money on their investment.

4. Huge supplies are produced but are not sold.
Causes of the Great Depression
Overproduction
Huge supplies are produced but are not sold.
Farmers who produced goods were noticing that people in their own countries were buying less. THE FARMERS WERE OVER PRODUCING PRODUCTS.
Factories were also over producing. When companies realized this, they slowed down production and fired workers to save money.

5. Factories/farms slow down production
Workers fired
Less money to spend on buying goods

6. Reliance on Exporting Staple Products
Causes of the Great Depression
Reliance on Exporting Staple Products
Staples: crops (wheat), pump & paper, fish, minerals
Meant that other countries had to keep buying those staples from us for our economy to remain strong
Other countries started producing MORE… so they needed less from us = unsold staples in Canada

7. Drought – “Dustbowl”

8. DROUGHT ON THE PRAIRIES
No rainfall = dying crops = no wheat shipped = railways and flour mills lost business.
Mass migration of farmers looking for work
Saskatchewan the hardest hit province

9. Canada’s Dependence on USA
Causes of the Great Depression
Canada’s Dependence on USA
“When the United States sneezed, the rest of the world got pneumonia.”
40% of our exports were sold to the USA
65% of our imports were from the USA
USA was our most important trading partner, and our economy was linked closely with theirs

10. Tariffs & Protectionism
Causes of the Great Depression
Tariffs & Protectionism
Tariffs: money collected on goods coming into a country
Protectionist: protecting your home country’s products/industries and discouraging imports through tariffs.

11. Tariffs & Protectionism
Causes of the Great Depression
Tariffs & Protectionism
Countries throughout the world were raising tariffs, which made it harder to trade…

12. International Debt after WWI
Causes of the Great Depression
International Debt after WWI
USA lent money to foreign nations
Foreign nations depended on US exports to raise money.
Protectionist movement (tariffs) reduced this trade and Foreign nations could not afford to pay back loans.

13. THE STOCK MARKET CRASH (Oct 1929)
Causes of the Great Depression
THE STOCK MARKET CRASH (Oct 1929)
In Oct 1929 the New York Stock Exchange collapsed.
Prices of stocks fell very quickly and thus the stock owners wanted to sell all they had = downward spiral
More than 23 million shares changed hands in one day.

14. ECONOMIC TRAGEDY Because stocks had been so profitable people
had been getting loans from the bank,
and paying for STOCKS ON MARGIN
STOCKS ON MARGIN were stocks that were bought with only a 10% down payment. It was assumed that the rest of the cost would be covered with the profit from the stocks.
BANKS WERE EVEN INVESTING money from peoples accounts in stocks without the owners knowledge.
BECAUSE STOCKS LOST THEIR VALUE OVERNIGHT the people who had heavily invested WENT BANKRUPT OVERNIGHT.

15. The IMPACT
Some wealthy/middle class people did not see huge lifestyle change
Most people, especially factory workers, lost their jobs.
People were evicted from their homes (couldn’t pay rent)
Factories and businesses closed.
Many families depended on government relief payments and soup kitchens/free food organizations
By 1933 ¼ of Canada’s workforce was unemployed
MANY MEN TRAVELED TO TRY TO FIND WORK: They would take trains to towns all over Canada. This was called RIDING THE RODS.