Causes & Consequences of the Depression

Employment

100

Many people got laid off and lost their possessions

What happened to many Canadian citizens during the depression?

200

Approximately 25%. A quarter of Canadian citizens were jobless.

What was the unemployment rate at the height of the Depression?

300

A depression. A recession is a downfall in the economy with decreased value of goods and services, while a depression is much more serious with major unemployment and suffering.

Which is more severe, a recession or a depression?

400

They discovered that high unemployment rate was a national problem and should be dealt with by the federal government. Commission suggested that the government invest largely into job creation and training programs. Mackenzie King, disagreed with their proposal and eventually, spent only a fraction of what was recommended.

What conclusion did the National Employment Commission come to? Did the government (PM Mackenzie King) follow their recommendations?

500

First of all, many young men left home to 'ride the rods.' meaning that they would jump on trains and travel from town to town, looking for work. This was generally ineffective, as there was simply no work to be found. Secondly, people also established small town-like settlements called 'jungles.' These were dirty, and most people didn't stay long. Moreover, when the government set up relief camps, many single young men tried them, as well. However, these were isolated from the rest of civilization. The labor was hard, the pay was bad, and the living conditions were miserable.

What were the solutions that most people tried during the Depression? Were they effective?

Political Change

100

The Co-operative Commonwealth Federation, the Social Credit Party & the Union Nationale.

Which 3 major political parties were created during the Depression? is

200

In short, their all their efforts were in vain and they were doing nothing or were not effective at helping the economy.

Why were governments being voted out quickly from office?

300

Equalization payments were accepted by poorer provinces, but rich provinces felt as if their tax dollars were placed in other province's hand making it unfair.

How were equalization payments recepted?

400

The Supreme Court ruled that the provinces could not print their own money, so the government was not able to get the money to the people.

Why did the Social Credit Part fall through on their "basic dividend" plan to jumpstart economy?

500

The current Prime Minister at the time showed that he did not care about the suffering of the people by refusing aid to any province that was not under a liberal government. This resulted in the liberals losing the next election.

How did the federal government first react to the depression?

Causes of the Depression

500

Factories and farms were producing more excessive products than the public could ever hope to use; the demand for the products fell, and the price followed suit. The majority of the sellers could no longer sell enough product to make enough profit to balance out the cost and stay in business. Many farms, in particular, were hit hard.

How did overproduction contribute to the Depression?

Solutions of the Depression

100

Work camps are isolated places in the woods set up by the government where single men can work and are paid twenty cents and given poor food and shelter. At these camps, men built roads, dug ditches and cleared land.

What are work camps?

500

Prime Minister, Mackenzie King, believed that the economy would recover on its own and that having the government spend money would not be a good investment which would not help in the Depression. It was ironic to be spending massive amounts of money during a Depression.

Why was Prime Minister King against giving money to provincial and municipal governments?

The Stock Market

500

When the stock market crashed, many people were unable to repay their loans and also lost their original payments. This affected many who invested in the stock market. Companies and people crumbled and soon the economy was forced to shrink, causing many people to be laid off. This lead to unemployment and later bankruptcy for many who used up their money and could not find a job.

Why did buying on margin lead to widespread losses & bankruptcy?