1. The Dirty 30’s The 1920's were a time of optimism and prosperity All that would soon end...

2. Black Tuesday During the 1920's, many people played the stock market By 1929, stocks began losing their value On October 24, 1929, thousands of stocks that were bought on margin were dumped on to the stock market Investors panicked, and within days, these stocks were worthless...

3. On Tuesday October 29, 1929, the stock market crashed – everyone had dumped their stocks At first, no one realized how serious this problem would be – even PM Mackenzie King thought that the economy would naturally correct itself

4. Economic Cycle Prosperity -Money -Employment -Expansion of business and manufacturing -Technology and new products RecoveryRecession -Jobs increase -Money to spend-Cutbacks in production -Job loss -Production increased and business expands-Wage cuts and layoffs Depression -Low demand for goods and services - High unemployment -Factories shut down and businesses close

5. Causes of the Great Depression LONG TERM CAUSES Canada's resource based economy (minerals, fish, wheat, lumber) Canada's economy vulnerable to global shifts in the economy Dependence on Exports Decreased global demand Surpluses, low sales High tariffs

6. Over-production in the 1920's Falling demand Low prices Falling wages Deflation Credit purchasing Banks call in loans People lose assets... bankruptcy

7. Regionalism Western Provinces hard hit Maritimes never recovered in 1920's Unemployment Contributes to the downward spiral

8. SHORT TERM CAUSES Stock market crash Buying on margin, stock prices plunging Investors couldn't repay brokers and dumped stocks on market No one was buying! Stock market crash on Tues. Oct. 29 – all stocks are worthless

10. Drought and Dustbowl Surplus of wheat in late 1920's, but low demand Drought on and off for 10 years through the late 20's and early 30's Dustbowl – top layer of soil dries up Grasshoppers Huge infestations damaged crops

12. Government Reactions PM Mackenzie King thought that the Crash would only be temporary; he did not want to raise taxes or borrow money to help the poor R.B. Bennett, leader of the opposition (Conservatives) wanted higher tariffs to protect Canadian goods from unfair competition from other countries

13. Alternative Solutions New political parties were forming in the 1930's as a response

14. Communist Party of Canada Smallest and most radical They believed that the capitalist system was to blame They wanted to eliminate private ownership of business and property to help eliminate poverty

15. CCF Co-operative Commonwealth Federation Their platform was called the Regina Manifesto This party wanted a policy of democratic socialism where an elected government would own businesses to make sure that prices were fair and profits were returned to the people

16. Social Credit Party Lead by William Aberhart Wanted to jump-start the economy by putting people back to work and by printing more money Social Credit party governed Alberta from 1935-1971

17. Union Nationale Unemployment was high in Quebec and many businesses were run by English Canadians Maurice Duplessis forms this party Promised to bring in higher minimum wage, workers' compensation, create a provincial government-owned hydro-electricity system like in Ontario Duplessis did not keep his promises and allowed the Roman Catholic Church to continue to control social services; government action was taken against unions and their leaders

18. Bad Times and a Bleak Future Prairie farmers suffered more than any other group of Canadians during this time Many were already suffering a drought since the late 1920's Many fell behind on mortgage payments and some were forced to leave their homes to find new ones elsewhere in Canada The dole = relief payments, or welfare

19. Safety Net Social policies to assist people in difficult times Helps provide insurance to make sure we have a basic standard of living Healthcare, education, unemployment, social assistance, shelter

20. On to Ottawa Trek Unemployed men were sent to relief camps in British Columbia In Vancouver, strikers commandeered freight trains and headed to Ottawa to take their message to PM Bennett This was feared to be a communist revolution Bennett ordered the strikers to be stopped in Regina where the strike leaders had organized a peaceful demonstration A riot broke out when RCMP tried to forcefully break it up

21. Riding the rails...