1. The Great Depression

2. Overproduction good times had encouraged producers to increase production beyond what markets demandedgood times had encouraged producers to increase production beyond what markets demanded caused a stockpiling of goodscaused a stockpiling of goods as workers were laid off, they have less money to spend, they buy fewer goods, and problem becomes cyclicalas workers were laid off, they have less money to spend, they buy fewer goods, and problem becomes cyclical

4. Dependence on Primary Products competition from other producers of same products reduced price on world marketcompetition from other producers of same products reduced price on world market increasingly vulnerable if those industries suffered a setback (e.g. farmers facing drought in 1930s)increasingly vulnerable if those industries suffered a setback (e.g. farmers facing drought in 1930s) wheat especially - lots of demand in 1920s, but then other markets increased supply, prices fell,wheat especially - lots of demand in 1920s, but then other markets increased supply, prices fell, farmers lost income & couldn’t pay loans and mortgagesfarmers lost income & couldn’t pay loans and mortgages

6. Buying on credit buy now, play later motto caught up with Canadiansbuy now, play later motto caught up with Canadians new consumer goods paid for in installmentsnew consumer goods paid for in installments many lost jobs and were unable to pay for credit purchases, losing the money they had paid as well as the productmany lost jobs and were unable to pay for credit purchases, losing the money they had paid as well as the product

7. Stock Market Crash Stock Markets very active during the late 1920s (1922-1926 Canadian companies issued shares valued at $700 million)Stock Markets very active during the late 1920s (1922-1926 Canadian companies issued shares valued at $700 million) “Buying on margin” put 10% down on stocks with the idea of paying back the rest with dividends - sometimes even the “margin” was borrowed on easily obtained credit“Buying on margin” put 10% down on stocks with the idea of paying back the rest with dividends - sometimes even the “margin” was borrowed on easily obtained credit

8. investors sought to cash in on high prices, but flooded market & prices crashedinvestors sought to cash in on high prices, but flooded market & prices crashed Oct 29, 1929 Stock market crashed - Black TuesdayOct 29, 1929 Stock market crashed - Black Tuesday

9. Dependence on USA primary market, so downturn there affects us (reduced business, trade)primary market, so downturn there affects us (reduced business, trade) Smoot Hawley Tariff Act 1930 - raised import duties, led to trade decline with CanadaSmoot Hawley Tariff Act 1930 - raised import duties, led to trade decline with Canada

10. Protectionism Tariffs enacted by countries shut Canada out of world marketsTariffs enacted by countries shut Canada out of world markets exports plummeted, with serious repercussions for the economyexports plummeted, with serious repercussions for the economy

11. Environmental Issues poor farming practices and drier climate led to droughtpoor farming practices and drier climate led to drought topsoil dried up and blew away in great dust stormstopsoil dried up and blew away in great dust storms affected “Palliser’s Triangle” in Canadaaffected “Palliser’s Triangle” in Canada in Prairies (CAN) and Great Plains (US) known as The Dust Bowlin Prairies (CAN) and Great Plains (US) known as The Dust Bowl

15. Other concerns economic model - government not as involved, so economy is slave to the markets (capitalism)economic model - government not as involved, so economy is slave to the markets (capitalism) banking system and dropping the gold standardbanking system and dropping the gold standard unequal distribution of wealth - small middle class, wages not keeping pace with cost of livingunequal distribution of wealth - small middle class, wages not keeping pace with cost of living population decline - war, influenza, and distractions of the Roaring 20spopulation decline - war, influenza, and distractions of the Roaring 20s

16. Other concerns economic model - government not as involved, so economy is slave to the markets (capitalism)economic model - government not as involved, so economy is slave to the markets (capitalism) banking system and dropping the gold standardbanking system and dropping the gold standard unequal distribution of wealth - small middle class, wages not keeping pace with cost of livingunequal distribution of wealth - small middle class, wages not keeping pace with cost of living