1. Causes of the Great Depression:
Canada’s Weakening Economy

2. Economic Recession (1919-1924) Economic Depression (1929-1939)
Economic Recovery ( )
Causes:
Characteristics:
Economic Recession ( )
Economic Depression ( )

3. Economic Recession (1919-1924)
Causes:
Effects of the Great War
The huge war debts of most European countries meant that they could not afford to buy Canadian products
The United States had placed high tariffs on products, so Canada had lost much of its foreign market
Characteristics:
High unemployment
Increased bankruptcies
Many Canadians moved to the United States

4. Economic Recovery ( )
Causes:
Loans from the US to European countries meant that they could once again buy Canadian exports
Value of wheat exports climbed
Industries such as pulp and paper (demand for newsprint soared), hydro-electricity, and mining were developed and expanded
American investments in Canada increased
Immigration to Canada increased
Growth of the automobile industry
Characteristics:
Low unemployment
People buying new products
New technologies being developed
Leisure time increased – motion pictures, jazz age, travel, etc

5. Economic Depression (1929-1939)
Causes:
Market vale of stocks was inflated
Individuals investing in inflated stocks; some were borrowing money to do so
As prices of stocks continued to rise, people became nervous and started a massive wave of selling their stocks; panic took over
Thousands of investors were wiped out because they were forced to sell their shares at a fraction of what they cost
Companies began to shut down; people lost their jobs
Demand for goods dropped as unemployment increased
Canada and other countries were producing more goods than markets could absorb
Decline in international trade due to raised tariffs
Characteristics
High unemployment
Economic downward spiral
Wages were far below the standard of living

6. The stock market crash is not the only cause of the Great Depression
The stock market crash is not the only cause of the Great Depression. In fact, it is just one of the symptoms of a weakening economy.

7. What caused the great depression?

8. 1. Over-Production and Over-Expansion
1920s: Businesses were expanding and production was increasing
Stock began to build up in warehouses
Production was slowed down, workers were laid off, and the public had less money to spend

9. 2. Canada’s Dependence on a few primary products
Primary products in Canada: wheat, fish, minerals, pulp and paper
The Depression decreased demand for these products, causing many regions in Canada to fall into trouble
Drought in the West caused farmers to lose crops and in turn money (couldn’t pay mortgages)

10. 3. Canadian Dependence on the United States
Canada’s economy was becoming linked to the United States’
65% of Canadian imports were from the USA, and the USA was the largest buyer of Canadian goods
When the American economy became sick, the Canadian economy followed suit

11. 4. High Tariffs choked off International Trade
Tariffs: an excess tax on imported goods
Protective tariffs were increased on foreign imports to protect home industries from foreign competition and therefore choked off international trade

12. 5. Too Much Credit Buying
1920s theme: “Buy now, pay later!”
People were buying with money that they didn’t have and as a result ended up in great debt
Many items were repossessed during the Great Depression

13. Canada A people History Hard Times
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