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Causes Of The Great Depression In Canada

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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 …show more content…

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 …show more content…

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

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The severe economic conditions of the depression brought down and impacted numerous countries including Canada. When Bennett was running for prime minister he had no idea of the economic disasters that would be approaching and was unable to discover or utilize any effective methods to deal with them. During the 1930 election Robert campaigned to combat the aggressive measures of the great depression and when he was elected for the conservative party he immediately distributed $20 million toward helping the unemployed citizens of Canada. Unfortunately, the depression conveyed and produced many problems that no one was capable of adequately handling. Bennett attempted to strengthen Canadian trade by preferential tariffs, but unfortunately it

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In the United States, farmers began to produce more food than they had previously, due to the technical advancements during this era. Because of the constant surpluses of food farmers were producing, the prices of food decreased. America could no longer sell as many goods to Europe as they had previously, because Europe was also experiencing a depression, causing them to not be able to afford as much world trade. The world trade market was also becoming competitive with Argentina, South Africa and many other countries now actively trading as well. Prices of crops continued to plummet and farmers could no longer afford their bank loans.

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Furthermore, the implications of trade during this period allowed for more revenue. Overall, the growing agriculture throughout the decade helped develop the economic growth seen throughout the 1920s. WORKERS AND FARMERS

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The Great Depression, also known as The Dirty Thirties was an outstanding worldwide economic crisis. It left millions of Canadians unemployed, hungry and often homeless. Hardly any countries were affected as severely as Canada, more specifically the Prairies. This merciless time period in Canadian history brought several years of drought and grasshopper epidemics upon the farmers that occupied the Prairies. Canada’s Prairies suffered the most during the Great Depression due to the unforgiving drought, the grasshopper plague, and the rapidly increasing unemployment rate.

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Canada has been through many difficulties throughout a period of time. From the roaring twenties to the Dirty thirties, The Great Depression had been a tragic era of tremendous change between 1929 to 1939 because it ruined lives of many. Canada was greatly hit during the depression. The governments in the 1930’s played a huge roll in flawed responsibility. They lacked in helping the country strive to aiding their citizens.

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The Great Depression was a complex event caused by a variety of factors. The six factors of the Run on the Banks, the Stock Market crash, the uneven distribution of wealth, problems for business and industry, problems for farmers, and the overuse of credit all played a role in the start of the Great Depression. All of these factors were an important factor in helping start the Great Depression. However, the overuse of credit was the most important factor of them all because it led to people relying on loans, too many payments for the consumer to adequately keep up with, and the economy eventually drying up once the influx of money stopped.

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The Great Depression was a devastating global economic crisis that impacted countries all around the world, including Canada. The economic downturn had a profound effect on the Canadian economy, leading to widespread unemployment, poverty, and hardship for many Canadians. This essay will explore how the Great Depression affected Canada as a whole and how it impacted different groups of people within Canadian society. Additionally, the government's response to the crisis will be examined, analyzing whether their actions were effective or not in addressing the economic and social consequences of the Great Depression. Through analyzing various historical sources, this essay will argue that the Great Depression had a lasting impact on Canada and its people, highlighting the need for effective government action during times of crisis.

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The Great depression was a very long and harsh recession in Canada’s economic market. The stock market crash was a rapid crash that left many companies and millionaires bankrupted. This abrupt shock left many people without food, jobs and sometimes homeless. The citizen were in a crisis 30% of the labour force wasn’t working and the unemployment rate was always above 12%, resulting in 1 in 5 canadians having to depend on governmental help for survival. To this day we’ve never seen such a bigger economic crash because Canada high placement in economic world.

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During the Great Depression the unemployment rate went up, they were forced to eat at soup kitchens or go through garbage cans for food, and they even had to build shelter out of cardboard. The first underlying cause of the Great Depression was underconsumption and overproduction. Many things contributed to the underconsumption of goods. The production line kept producing goods even when people could not afford to buy them.

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The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when

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The economy of canada had been greatly affected by the great depression. In between

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“The worldwide Great Depression of the early 1930s was a social and economic shock that left millions of Canadians unemployed, hungry and often homeless. Few countries were affected as severely as Canada during what became known as the Dirty Thirties, due to Canada’s heavy dependence on raw material and farm exports, combined with a crippling Prairies drought. Widespread losses of jobs and savings ultimately transformed the country by triggering the birth of social welfare, a variety of populist political movements, and a more activist role for government in the economy. ”The economic state of the country met with the large desire for change led many Canadians to make desperate choices to make their lives better. This desire and the birth of the Dionne quintuplets created a large jump in morale for many Canadians, this new found hope made Canadians want more of the quintuplets.

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(Boan, 2006) The experience of the Great Depression in the 1930’s left many in difficult financial situations. (Boan, 2006) Although, provinces helped with relief payments for food, clothing and shelter, medical costs were too much for the budget. (Boan, 2006) Many people were not receiving proper medical care, and for those that were the bills were just too high, as a result, causing death from preventable diseases. (Boan, 2006) Years of depression and war brought cooperation and agreement between the federal and provincial governments: The Green Book Proposal, “introduced a plan for comprehensive social security, including measures to promote full employment, contributory social insurance plans and universal public health insurance”.

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In the early 1930s the labor force in countries that were industrialized saw as much as one forth of its workers unable to find work. Conditions were starting to improve by the mid 1930s, however total recovery did not happen until the end of that decade. This was a very difficult time in United States history and around the world, but it could be said that something good came out of it, central banks throughout the world now try to thwart or moderate recessions. It is unclear whether a change like this would have occurred if not for the

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The first cause of Great Depression was bank failure. It was one of the main causes of the Great Depression. Throughout the 1930s over 9000 banks failed. In 1920s there were a lot of banks.

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