THE GREAT DEPRESSION

The Dirty Thirties In Canada: Between 1929 and 1939, the gross national product dropped 40% (compared to 37% in the US). Between 1929 and 1939, the gross national product dropped 40% (compared to 37% in the US). Unemployment reached 27% at the depth of the Depression in Many businesses closed. Unemployment reached 27% at the depth of the Depression in Many businesses closed. Corporate profits of $398 million in 1929 turned into losses of $98 million in Corporate profits of $398 million in 1929 turned into losses of $98 million in Canadian exports shrank by 50% from 1929 to Worst hit were areas dependent on primary industries such as farming, mining and logging because as prices fell and there were few alternative jobs. Canadian exports shrank by 50% from 1929 to Worst hit were areas dependent on primary industries such as farming, mining and logging because as prices fell and there were few alternative jobs. Families saw most or all of their assets disappear and their debts became heavier as prices fell. Families saw most or all of their assets disappear and their debts became heavier as prices fell. In the 1930s the economy took a severe and devastating turn for the worse. In the 1930s the economy took a severe and devastating turn for the worse.…why?

Causes of the Depression 1) Over production and over expansion In the 20s the country was booming In the 20s the country was booming Goods piled up and consumers only could buy so much Goods piled up and consumers only could buy so much Companies had to slow production as product was just sitting on the shelves Companies had to slow production as product was just sitting on the shelves Had to lay off workers as sales slowed even more Had to lay off workers as sales slowed even more Now companies had heavier debt and lack of cash flow Now companies had heavier debt and lack of cash flow

Causes of the Depression 2) Canada was dependent on a Few Primary Products Wheat, fish, minerals and pulp & paper were the most important exports Wheat, fish, minerals and pulp & paper were the most important exports Demand for these products worldwide fell and Canada suffered Demand for these products worldwide fell and Canada suffered

Causes of the Depression 3) Canada was dependent on the United States 60% of imports were from US 60% of imports were from US 40% of exports were to the US 40% of exports were to the US Depression hit the states and so Canada was thrust into one as well Depression hit the states and so Canada was thrust into one as well

Causes of the Depression 4) High Tariffs Canada's raise tariffs on their goods being exported only backfired due to competition from other countries and Canada's lack of variety in its exports. Canada's raise tariffs on their goods being exported only backfired due to competition from other countries and Canada's lack of variety in its exports. Also, Canada and other countries wanted to protect their home industries by placing high tariffs on foreign imports but this caused trade between countries to slow nearly to a stop. Also, Canada and other countries wanted to protect their home industries by placing high tariffs on foreign imports but this caused trade between countries to slow nearly to a stop.

Causes of the Depression 5) Too Much Credit (Buy now – pay later) Canadians bought too much on lease and credit, including stocks. Canadians bought too much on lease and credit, including stocks. when the stock market crashed (partly due to the credit buying), Canadians were in debt when the stock market crashed (partly due to the credit buying), Canadians were in debt They attempted to sell their personal belongings, which in many cases led to repossessions of partly paid-for purchases. They attempted to sell their personal belongings, which in many cases led to repossessions of partly paid-for purchases. They bought thinking when stock goes up I’ll sell and with my profit pay back the money– but what if it didn’t go up or what if it in fact went down

STOCK MARKET CRASH Stock Market crash - Oct.29, 1929 Stock Market crash - Oct.29, 1929 As stock value went down, people wanted out. As stock value went down, people wanted out. They rushed to convert their stocks into real money and panic selling occurred. They rushed to convert their stocks into real money and panic selling occurred. Less buyers Less buyers And prices continued to nosedive And prices continued to nosedive

Causes of the Depression Drop in Stocks - The population of Canada started to panic when they saw their stocks decrease in value. They all quickly went to the bank to get their money and the bank had no money left to give. People panicking was one of the causes.

The Drought and Dust Bowl Years The prairies were hit extremely hard by several years of drought. Dust storms swept across the prairies, making it impossible for farmers to grow the copious quantities of wheat they needed to provide for the markets. The wheat that survived the dust storms could not grow tall and healthy due to a lack of rain. Thus, since the farmers had frequently bought their seed and machinery by using credit, when they couldn't pay off their debts, the farmers were often bankrupted.

A wall of dust approaching a Kansas town.

Dust storm

A family suffers

Hopeless

Migrant mother

St. John’s, Newfoundland Eastern Canada was especially hard hit by the depression

Upstairs bedroom of family on relief.

Men waiting in line for food

Men wait in line for “Free coffee and donuts for the unemployed”

Political pressure was strong as people suffered

People slept wherever they could once they lost their homes

Thousands of people abandoned their homes and went on the road in search of work

Transients were not welcome in some towns.

Migrant camp

A squatter’s camp –often people lived in conditions like this when they were evicted

Apple selling to avoid the embarassment of panhandling. In New York City there were over 5000 apple sellers on the streets.