1. Causes of the Great Depression Causes of the Depression, the Business Cycle and some new vocabulary

2. Causing the Crash Canada’s Dependence on US markets –If US Economy drops so does Canada’s Decrease in farmers earnings –Decrease in prices leads to… –Decrease in overall demand Overproduction –Leads to layoffs –Decrease in Demand Protectionism –Tariffs lead to other tariffs Speculation on Stocks –Buying on the Margin Debt from WW1 –Less money for govt = Laissez-faire

3. Buying on the Margin Stock Speculation –Investors would put down the least amount necessary to purchase a stock –Investors often borrowed from the banks to do this –Hoped stocks would increase in price When stock market collapsed people in this situation lost everything

4. Economic Cycle Prosperity –When times are good –Mid 20’s –High employment Recession –When times are bad –Economic Slow Down –Unemployment rising Depression –A Long Recession! –High unemployment –Deflation can occur Recovery –When times improve –Start of WW2 Economy picks up to create equipment

5. Protectionism Tariffs –When governments put taxes on imported goods –Usually causes other governments to respond with retaliatory tariffs Subsidies –When government give supports to companies to make them competitive –Can result in retaliatory tariffs etc.

6. Inflation and Deflation Inflation –When costs increase –Especially hard on people with fixed incomes Deflation –When costs decrease –Usually due to drop in demand because of a depression or recession –Good to those employed

7. Deficit vs Debt Debt –Amount of money owed Deficit –Amount of money spent more than earned in a given period –If you have money in the bank (a surplus) than if you spend more than you earn you may still not be in debt.

8. Unemployment Rate Simply the number of people unemployed –Can be a difficult number to calculate –When is a person old enough to be considered unemployed –How about the under- employed?

9. Supply and Demand Supply and Demand Theory –If there is a lot of a product and not many people want it – it is cheap! –If there is very little of a product and there is a high demand - expensive

10. Impact of the Depression

11. The Prairies Saskatchewan had it the worst –Drought –Locusts –Dust Storms –Bennett Barnyards

12. Riding the Rails Unemployed went town to town looking for work –Often charged with vagrancy –Lived in jungles outside of towns –Bummed food or went to soup kitchens

13. Pogey kept low Pogey was kept low Welfare today In order to get Pogey people had to publically declare bankruptcy Not available for women Very low for 1 st Nations –Expected to live off of the land

14. Blaming Government Bennett Buggies –See the photo! Bennett Barnyards –An abandoned farm Eggs Bennett –No eggs or meat!

15. Relief Camp Worker Strike On to Ottawa Trek –Relief Camp Workers from BC form a union –Try to go to Ottawa by rail to meet Bennett –Wanted unemployment insurance and fair wages –Stopped in Regina Regina Riot –One police officer killed –Trek Broken Up

16. Protest Parties CCF –Socialist Party led by James Woodsworth –Their party platform was called the Regina Manifesto –Would become the NDP Social Credit –Led by William Aberhardt –Wanted $25 per month Union Nationale –Farm Credit Policies