1. The Great Depression in Canada
Causes of Great Depression: business cycle, contributing factors, stock market

2. The times they are a-changin’... in the 1920s
The Boom times of the 1920s
Industrial and economic growth - Railway and roadway development
New inventions and leisure time - radio, film, fashion, sports
Social changes
More support for unions and women’s rights.

4. But it’s not all great… in the 1920s
While women now have the vote and increased opportunities in workplaces, still face many barriers.
Aboriginals subject to residential schools, reserves, and Indian Act
Children still being exploited in workplace
Minorities facing barriers and intolerance

5. And now we get to the 1930s What is this time period known for?
Before we get to the crash, we need to figure out how we got to the boom

6. How can an economy boom and bust?
Business Cycle:
Prosperity
Recession
Depression
Recovery

7. Prosperity Prices and wages are high Low unemployment
Lots of profits and production is high
People willing to take risks
This is what life was like in the 2nd half of the 1920’s

8. 2. Recession Business slows down Layoff workers and cut production
Unemployment rises
Less money to spend or invest
Sales begin to fall

9. 3. Depression Recession continues Layoff of more people
Unemployment very high
Bankruptcy
Stock Market Crash
Sometimes only hits a low point called a TROUGH

11. 4. Recovery
A shortage of consumer goods develops because of the cutbacks in production
Production increases, more money to spend

12. Business Cycle Prosperity 2. Recession 4. Recovery 3. Depression
(Trough)

13. So things were going pretty well...

14. When Suddenly...

16. Black Tuesday - October 29th, 1929
Stock prices rose in the 1920s because more and more people were buying stocks So why did the market crash?
stocks bought on credit
Many causes, not just one

17. Causes of the Great Depression
• Over-production
• Purchasing stock / buying on margin
• Purchasing on credit / high consumer debt
• Over dependence on primary industries
• High tariffs / protectionism
• Dependence on the United States for trade

18. Over Production
Economic system called… CAPITALISM - Very efficient at manufacturing goods; creating a supply, more goods = more profit?
More goods were being produced then there was a demand for. Workers faced layoffs, and had less money to spend

19. Buying on Margin / Purchase on Credit
“Buy now, pay later.”
Many families got themselves hopelessly into DEBT with credit buying.
If wage earner became sick or was laid off work, impossible to keep up payments.
As the depression worsened, many people lost everything.

20. Buying on Credit

21. The Stock Market seemed an easy way to get rich quickly.
“Everyone doing it.”
Did not have money to play the Stock Market, you bought stocks on credit.
As soon as your stocks went up in value, you could sell them.

22. It was a risky process called “BUYING ON MARGIN.”
At first, few people thought that the devastating economic times around the corner.
But slowly, it began to dawn on them that hard times were upon them.
The GREAT DEPRESSION had begun

24. High Tariffs / Dependance on USA
Canada’s most important export is its STAPLES – wheat, fish, minerals, and pulp and paper.
As long as World demand for these products was strong, Canada would prosper.
Economy in serious trouble, if there was surplus of staples in the World or people stopped buying them.
Maritimes (fish) and the West (wheat) were really hit hard.

25. Our economy was closely linked to the U.S.
Bought 65% of our imports from the Americans. 40% of our exports to the Americans.
The U.S. replaced Britain as our main important trading partner.
When the Stock Market crashed, it affected us as well.
Countries placed protective tariffs to protect their home industries from foreign competition.
Thus trade between nations began to slow down around the World.

26. Conclusion • Over-production • Purchasing stock / buying on margin
• Purchasing on credit / high consumer debt
• Over dependence on primary industries
• High tariffs / protectionism
• Dependence on the United States for trade

27. Conclusion
Business Cycle:
Prosperity
Recession
Depression
Recovery?