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How Did The Roaring Twenties Affect The Stock Market In Canada

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“The Roaring Twenties” was a phrase often used when describing the 1920s. The phrase is justified by the cultural and artistic diversity of the time, and it was a period of glamour and prosperity for many Canadians (Drummond). Until 1924 the effects of the Great War continued to depress Canadian economic activity. However, in the mid-1920s Canada’s economy began to prosper because of innovative industries making Canada one of the best places to live. Paper and pulp mills successfully impacted Canada’s economy because of large amounts of production, investment, and demand. The automobile industry was very beneficial because it created more jobs and reduced unemployment with the help of spinoff industries. The stock market became a new frontier …show more content…

In the 1920s, that was the first thing that came to mind for investing. Although the stock market had the reputation of being a risky place to invest money, it did not appear that way in the 1920s and the stock market looked like a reliable investment for the future. Therefore, in the 1920s many people felt that they could make a fortune from the stock market. Despite the fact that the stock market was instable, Canadians invested all their money into it. The roaring twenties had created a platform where not only the rich had invested in the stock market, but people almost all economic classes placed money into the markets. The stock market became a new and modern frontier of making money. Increasingly, in the late 1920s, the value of stocks was not based on the market value of the stock. The value was being established by investors’ demand for it. The more money people invested, the greater the market value of stocks increased. Hence, the value of stocks increased through the mid 1920’s, and it was guaranteed that there was no other convincing way of making money. For example, the shares of Canadian Marconi, a radio company,

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After the end of World War I the Untied States entered a period of the Roaring Twenties. During the Roaring Twenties, production was high, spending was high, and the Stock market increased by over four hundred percent. By 1929, stocks were overpriced, factories were overproducing goods, and bad credit all climaxed with the collapse of the American economy. By the time the United States realized what was wrong the economy was plunging with no end in sight. In an attempt to prevent the collapse JP Morgan invested one hundred million dollars into the stock market to try and calm people and prevent selling.

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Document E says, “Businesses needed to sell stock to raise money to expand. By the mid-1920s only 2 percent of Americans were purchasing stock. But as manufacturing continued to expand, stock prices climbed upward and investors made money.” This quote shows how businesses were relying on stocks to make money and once the market crashed, they lost all the money that they had in the market at the time. Since Businesses were relying on the market, a lot of them weren’t able to survive.

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Although the 1920’s were booming and prosperous, the United States soon entered a prolonged economic depression. In October of 1929, prices in the stock market began an uneven downward slide (Document 2). As investors decided that the previous boom in the stock market was over, they sold more stock, thus causing the declination to increase even further. Many citizens of the United States were greatly affected by this. Families who had invested in stock lost most, if not all, or their life savings.

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Rushing to sell their stocks, millions of stockholders were unable to find any buyers and quickly their stocks lost all value. Then unable to pay back loans, banks would fail. “The depression touched every area of American life.” [Doc 2]. Many dreamed of becoming rich and prospering as so many were, but even the most careful of people lost their life’s savings.

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People bought stocks with the speculation of benefit to optimistically help support their families, as well as being able to have all home necessities. The fight for a small profit at the least was strong and intense because of the little amount of money there was to spread between businesses and citizens. Americans began to overextend their budgets and purchased more stocks at higher prices than what they were actually worth. William E. Leuchtenburg stated in The Perils of Prosperity that, “With debt no longer being shameful ..... consumers bought goods on installment at a rate faster than their income was expanding” (Doc 6).

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The U.S. stock market was doing exceptionally well during the early 20th century. Stock prices were high and Americans were making good money off of it. The stock market reached its all time high, when prices were beyond their actual value. As a result, the unemployment rate increased which lowered production for products. Eventually, because of that action, the stock prices began to fall, causing the stock market to plummet down, affecting everyone that had invested their money in stocks.

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Such programs helped increase workers’ sense of prosperity and wellbeing in the 1920s. While Americans generally were feeling good about the economy, those who invested in the stock market were overjoyed. The American stock market was performing spectacularly. The general trend in stock prices were high, and the steep rise in stock prices changed the way many people thought about buying stocks. People had the mindset that since the market never seemed to go down in the 1920s, maybe it never would.

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The Canadian economic development throughout the 20th century has had an everlasting impact on the economy to this day. The economy in the 20th century paved the way for how strong and secure the nations’ economy is in the present. Before the 20th century, Canada’s economy relied solely on trading. The colonies thrived economically through fur trade, where hunters sold animal furs to large corporations in North America. (http://www.thecanadaguide.com/the-economy) Other than fur, Canadians traded things like lumber, fish, coal, iron, gold, wheat and other grains.

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For example, In Document five it states that in 1929, a collapse of the American Prosperity happen. Which means people was putting a lot of their money into securities hoping to the make the stocks rise. People began gambling which made a lot of them go into debt (Harry J. Carman and Harold C. Syrett, A History of the American People, 1952). Also a lot of people were speculating, meaning investors was putting money towards stocks hoping to gain, but risking a loss. By 1931, six million Americans could not find work.

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Economy. According to the Oxford Dictionary, it is “The state of a country or region in terms of the production and consumption of the goods and services and the supply of money.” World War Ⅱ was a devastating time for everyone in the early 1900's. Pain and loss was a common occurrence, and people were struggling. This war affected multiple countries and colonies around the world, socially, politically, and economically.

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There were many significant events of the roaring twenties that greatly affected Canada. Prohibition is the illegal production and consumption of alcohol. Temperance groups (women who were concerned about alcohol problems affecting family and society) put prohibition laws on alcohol. Prohibition was in place in 1917. The positives of prohibition are men brought home paychecks which are not spent on alcohol, less domestic violence and crimes.

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The Roaring Twenties was an era of change in Canada that marked the transition from traditional to modern. This decade saw a major shift in the way of life like, culture, music, and fashion in the country. There are several reasons why the Roaring Twenties was the best time in Canada, including the booming economy, advances in technology, and social changes. One of the key reasons why the Roaring Twenties was the best time in Canada was the economic boom that led this era.

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Many portray the 1920s as a time of lighthearted leisure and prosperity. When in fact this period consisted of significant economic , social and cultural conflicts. Technological innovations sparked the economy and life post war was significantly different with the introduction to what we know as the “New women” the new women also sparked many social conflicts. Along with the New women tension between religion and science also sparked many important conflicts during the time we know as the Jazz Age.

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After the end of World War 1, many companies had gained wealth from having a mass increase in the work that had to be done in their company. Also from the amount of debt they were owed from other countries. This help to create a great improvement in wealth. As well as many companies started investing their money into the stock market. Where they helped provide money for smaller companies or business, but they could also collect money off of it too.

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Unemployment levels decreased, and trade gained speed with the help of the truck industry("Back in the Roaring ‘20s,2). The last important advancement in transportation that benefitted the United States was the development

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