The Great Depression in Canada

Summary

The video script explores the Great Depression's impact on Canada, focusing on four key causes: the 1929 stock market crash, easy credit leading to over-investment, interdependent global trade exacerbating economic downturns, and the Prairie droughts worsening agricultural losses. These factors combined to plunge Canada into a severe economic crisis, highlighting the interconnected nature of global economies and the devastating effects of over-reliance on exports.

Takeaways

• 📉 The Great Depression was a significant economic downturn that greatly affected Canada, with specific causes often attributed to major events.
• 📅 Black Tuesday (October 29, 1929) marked the beginning of the Great Depression, as it was the day of the stock market crash that signaled the recession.
• 💹 Easy access to loans and the rapid increase in share values during the Roaring Twenties led to an unsustainable economic bubble that burst during the crash.
• 🏦 The stock market crash had a domino effect, causing banks to demand repayment of loans that many could not afford, leading to further economic instability.
• 🌐 The interwoven global economy meant that the economic downturn in the United States had a ripple effect on trading partners, including Canada.
• 🚗 Post-World War One industrial growth and the availability of consumer goods like cars and radios led to widespread borrowing to finance these purchases, which contributed to economic instability.
• 🌾 Canada's heavy reliance on the U.S. as an export market and for imports made it particularly vulnerable to the economic downturn in the U.S.
• 🌾 Wheat overproduction in Canada, due to the Prairies' agricultural boom, led to an oversupply that was exacerbated by the global economic depression.
• 🛃 Increased tariffs by other countries to protect domestic industries further reduced demand for Canadian exports, worsening the economic situation.
• 🌧️ The drought and subsequent agricultural crises in the Prairies, starting in 1928, devastated the farming community and contributed to the overall economic hardship.
• 🦗 Drought, grasshopper plagues, and crop diseases like rust led to poor harvests and reduced income for farmers, worsening the economic impact of the Great Depression.

Q & A

What is the significance of October 29, 1929, in the context of the Great Depression?

October 29, 1929, is known as Black Tuesday because it was the day of the stock market crash that signaled the beginning of the Great Depression.

Why did people start selling their shares during the stock market crash of 1929?

People started selling their shares as the share values decreased, in an attempt to withdraw their money and avoid losses, which led to a panic sell-off.

How did the easy availability of loans during the Roaring Twenties contribute to the Great Depression?

The easy availability of loans allowed people to take on debt to buy shares and luxury goods. When the stock market crashed, many were unable to repay these loans, leading to bank failures and a worsening economy.

What role did the interwoven network of trade play in the spread of the Great Depression?

The interwoven network of trade meant that the economic downturn in one country, like the United States, affected its trading partners, including Canada, due to the interconnected nature of the global economy.

How did the post-World War One economic boom and new inventions impact the economy before the Great Depression?

The post-war economic boom and new inventions led to increased consumer spending and easy access to loans, which fueled a speculative bubble that burst during the Great Depression.

Why did the demand for grain decrease during the Great Depression, and how did this affect Canada?

The demand for grain decreased because of the economic downturn in countries like the USA, which reduced their imports. This affected Canada significantly as it relied heavily on grain exports, leading to a loss of export markets and economic hardship.

What was the impact of increased tariffs by other countries during the Great Depression on Canadian exports?

Increased tariffs by other countries encouraged citizens to buy domestically produced goods, which reduced the demand for Canadian imports and further exacerbated the economic crisis in Canada.

How did the oversupply of wheat in Canada contribute to the economic problems during the Great Depression?

The oversupply of wheat led to a decrease in grain prices, which left Canadian farmers with less income. This, combined with the global economic downturn, worsened the financial situation for farmers and the overall economy.

What role did the drought and subsequent agricultural problems play in exacerbating the Great Depression in Canada?

The drought and agricultural problems like grasshopper plagues and crop diseases reduced crop yields and increased the hardship for farmers. This, coupled with the economic depression, led to widespread poverty and unemployment among farmers.

What were the consequences of the high unemployment rate caused by the Great Depression for the Canadian workforce?

The high unemployment rate made it even more difficult for people to find work, increasing poverty and social unrest, and putting further strain on the economy and government resources.

How did the economic conditions in the Prairie provinces of Canada change during the Great Depression?

The Prairie provinces, once rich from grain exports, were severely impacted by the drought and the global economic downturn. The decrease in grain prices and the loss of export markets led to widespread destitution among farmers in these regions.