Causes of the Depression
Consequences of the Depression
The Stock Market Crash
The Prairie Provinces
The Canadian Government During the Depression
100
During the 1920's, the economy was improving, and companies responded by increasing their production. The thing is, they produced more goods than there was a demand for. The result of this was the slow down of production and the layoff of many workers. Since these workers were out of a job, they now had less money to spend on goods. This is one of the causes of the Depression.
What is "overproduction?"
100
The Depression began October 29th, 1929, for various factors and lasted until 1939. Wartime industries had begun to open back up as World War 2 started, and this basically kick-started the economy again. Though, the period known as the Depression was a time of tremendous hardship, and thousands of Canadians suffered.
How long did the Depression last?
100
This term refers to October 29th, 1929, the day the New York Stock Exchange Collapsed.
What is "Black Tuesday?"
100
A term for the severe droughts and dust storms that hit Canada's Prairie provinces. The droughts made it impossible for crops to grow as they weren't receiving enough water. Additionally, the dust storms caused millions of hectares of precious topsoil to blow away.
What is the "Dust Bowl?"
100
As attitudes towards Prime Minister Mackenzie King shifted in a negative direction, he was voted out of power in 1930. Canada's new Prime Minister became R.B. Bennett, leader of the Conservative party.
Who became Canada's Prime Minister in 1930?
200
The Canadian economy relied heavily on the sale of products such as wheat, fish, minerals, as well as pulp and paper. Canada's reliance on these products later contributed to the Depression as when other countries began selling these products, prices fell and the Canadian economy in turn, suffered.
What primary products was Canada's economy dependent on during the 1920's?
200
This term refers to young, jobless men who would jump on trains without being noticed, going from town to town in search of work. At the end of the Roaring Twenties in 1929, unemployment in Canada was at 4.2%. By the time 1933 came along, unemployment rose to 24.9%. It was rare that work was found and many of these men would ride on top of the roof of freight trains or they clung to the rods underneath the trains. People were desperate during the Depression, as both poverty and unemployment levels continued to grow.
What is, "Riding the Rods?"
200
When investors buy shares with only 10% down, and borrow the remaining 90% from the bank. They assume profits will be made in the stock market, allowing them to pay back their loan.
What is "Buying on the Margin?"
200
The drought in Canada's Prairies allowed grasshoppers to thrive, as they love dry, hot weather conditions. These grasshoppers would devour everything in their path, including wheat, grass and even clothes. Farms became insect infested, forcing people to leave their farms. The grasshopper infestations in the Prairies became so bad that the bugs even clogged car radiators.
How did grasshoppers that descended from the Prairies worsen the Depression?
200
Government relief payment was provided to those who couldn't support themselves. These people owned nothing of value and had no source of income. Many individuals applying were evicted from their homes. The process to get on this government relief payment was humiliating, but applicants who met the requirements would receive food vouchers and supplies.
What is "pogey?"
500
As the world economy slowed, countries responded by placing tariffs on imported goods. Not only did tariffs make Canadian products more expensive, but it also made Canadian goods harder to sell. As a result, Canada's economy slowed. Prime Minister Bennett ended up raising Canadian tariffs by 50%. In turn, other countries started putting up trade barriers against Canada.
How did protectionism slow down Canada's economy?
500
Many Canadians grew frustrated with the party platforms of traditional political parties and their lack of help during the Depression. New political parties started to emerge as a result. These parties had fresh ideas, which appealed to many groups of Canadians. The Cooperative Commonwealth Federation, for example. It formed in 1932 and appealed to many groups of Canadians, such as farmers, laborers and socialists. The CCF was a socialist party that supported government ownership of certain businesses as well as social programs like income assistance.
How come more political parties were being created during the Depression?
500
The prices of stock were high, and many benefited. When the prices suddenly dropped on October 29th, 1929, those who expected to gain high profits, suddenly found themselves out of money. Those who borrowed heavy amounts from banks to buy shares went bankrupt as they weren't able to pay back their loans. For some, it took only a single day. This included companies as well that invested in the stock market. As a result, many people lost everything. They were out of a home and unemployed. Thousands were unable to find work at all. The only items in their possession were the clothes on their back. The crash affected all Western industrialized countries, creating a deep and long-lasting economic downturn. The collapse of the New York Stock Exchange brought an end to the prosperity of the, "Roaring Twenties," and contributed to the Depression.
How did the collapse of the stock exchange contribute to the Depression of the 1930's?
500
In 1935, the Prairie Farm Rehabilitation Administration was introduced by the federal government. The agency was introduced to help farmers build irrigation systems and reservoirs. Though, by the time the PFRA was introduced, many were forced to leave their farms because of the drought and poverty. Crops were destroyed, and fertile topsoil was blown away in dust storms. By the time the PFRA was put in place, many felt it should have been put in place sooner. Between 1931 and 1941, an estimate of 247,000 people left the Prairies.
By the time the Prairie Farm Rehabilitation Administration was introduced, why was it considered, "too late?"
500
Although Mackenzie King's views on the Depression had changed very little during his five years as Opposition, he was elected back as Canada's Prime Minister in 1935. People felt that Prime Minister Bennett inadequately handled the crisis known as the Depression, and didn't do enough to decrease the growing unemployment rate. Bennett may have provided jobs through work camps, but workers received low pay and endured horrible conditions. Work camps were one of the contributing factors that led voters to elect Mackenzie King. People were upset, and Bennett wouldn't listen. Fed up voters elected Mackenzie King back in government in 1935, who campaigned the slogan, "King or chaos."
Why was Mackenzie King elected back as Canada's Prime Minister in 1935?
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