Causes Of The Great Depression In Canada

The Great Depression was a devastating worldwide event. It is marked by unemployment, poverty, bankruptcy, and desperation. Several countries were affected differently due to their unique economic statuses but the most well-known cause of the Great Depression was the Stock Market Crash of 1929. From then on, each country, with its own economic and political imperfections, experienced a plethora of disasters. One of the countries that suffered the most in the Great Depression was Canada in the period of what was known as the “Dirty Thirties.” Before the Stock Market Crash of 1929, Canada was in the process of a shift from fishing, farming, and mining to manufacturing. Canada was reliant on exporting raw materials and farm produce to the United

The United States prospered in the era known as the “Roaring Twenties”. The average worker production increased by 32% in manufacturing and business profits rose to 62%. Citizens of the United States felt the need to reward themselves after World War I, so many sought to buy consumer goods like electronics. This demand for consumer goods led companies to produce even more goods. However, in reality, no one had enough money to buy what they wanted which caused overproduction. Additionally, farmers were overproducing as well. During World War I, the government paid farmers to produce wheat and grains for them at high prices. The price of wheat and grain went down to normal levels when the war ended and this made it difficult for farmers to pay their debt. Another cause of the Great Depression in the United States are the poor economical decisions of the Federal Reserve Board. When wages were lowering and people were not able to buy the luxury items they wanted, credit was invented which introduced the concept of “buying now and paying later”. Further, the Federal Reserve Board of the United States had the power to set interest rates so what they did was lower the interest rate to encourage people to use credit. A tremendous amount of people used credit which caused companies to gain more

After World War I, prices of sugar dropped colossally and caused the overproduction of sugar. Although the price of sugar gradually increased from the end of World War I, the crash of the stock market repeated the process. Cuban sugar also relied on the United States’ investment and loans due to the Cuban Reciprocity Treaty of 1902. So when the stock market crashed, export revenue decreased from 209 million dollars in 1925 to 39 million dollars in 1932. In addition, tourism revenue fell during the Great Depression from 26 million dollars in 1928-1929 to 5 million dollars in 1933-1934. The Cuban government tried to save money for themselves by lowering the salaries of everyone nationwide except for soldiers. Because of this, strikes take place against the government, and some of the most violent strikes result in deaths. Desperate for anything, the dictator of Cuba, Gerardo Machado, implements public work projects. Even though many hated the dictator Machado, the programs provide so much relief to Cuba that even his political opponents supported