Great Depression Paper Canada

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What is the Great Depression?

1. The severe economic depression that took place worldwide is known as the great depression. It began in the US during the 1930s.
2. The timing of the great depression mostly varied from 1929 to the late 1930s.
3. In the 20^th century, the great depression was the longest, deepest, and most widespread depression. Great depression shows how intensively the global economic conditions decline.
4. The Great Depression started when there was a major fall in the stock prices in the United States, around September 4, 1929.
5. On October 29, 1929, it became worldwide news with the stock market crash. This day is known as Black Tuesday.
6. The effects of the great depression were devastating for both rich and poor countries. There was a fall in personal incomes, tax revenues, profits, and prices by more than 50%. During this period, the gross domestic product fell by 15% worldwide.
7. The recovery in some economies started by the mid-1930s. But, many countries faced the negative effects of the great depression until the beginning of world war 2.
8. There was an increase in unemployment from 23% to 33%. People lost their jobs and had to face many difficulties.
9. Everything was falling. Especially the cities dependent on the heavy industry was hit severely.
10. There was a halt in construction in many countries. People from farming communities and rural areas suffered price falls by about 60%. The people and areas that suffered most were, areas dependent on primary sector industries such as mining and logging.

Understanding the causes of the Great Depression in Canada

1. There was a social and economic shock to people living in Canada during the great depression. The effects of the great depression were severe in a few countries, one of them is Canada.
2. People were left homeless, hungry, and unemployed. They faced many issues. It was a time of total shock and instability of the people.
3. Canada heavily depended on the raw material and farm exports, along with the dust bowl, defined as crippling prairies drought, this period was known as the dirty thirties.
4. There were populist political movements and a variety of activist tole for the government in the economy because of the losses of jobs and savings. This triggered the transformation of the country.

Causes of the great depression in Canada

1. Overproduction and over-expansion- The industries expanded their production beyond demands. A large amount of money was spent on factories, their maintenance, and building new factories. In Canada, the goods remained unsold and the workers were laid. These workers didnt have money to spend.
2. Canadas dependence on a few primary products- The economy of Canada was dependent on the staples. The staple products in Canada were wheat, fish, minerals, pulp, and paper. In the other places that were hit with the great depression, the demand for Canadian products decreased.
3. Canadas dependence on the United States- Canada was highly dependent on the United States. 65% of imports and 40% of exports in Canada were from the United States. The United States stopped its import, collapsing the Canadian industries.
4. Excessive credit buying- Credit buying became popular in Canada during 1929. The families got into debt. Some products cost more than their worth.
5. Excessive buying of credit stocks- Stalk market was seen as an easy way to make money. People started investing money in the stock market. The only amount they had was invested in the stock market. The stocks started to fall in 1929. The shareholders and investors had to face high losses.

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