1. The Great Depression

2. Trends of the 1920’s High wages High wages High production High production High profits High profits Demand for goods Demand for goods Low unemployment Low unemployment In the 1920’s, many people played the stock market In the 1920’s, many people played the stock market Hoping to get rich quick Hoping to get rich quick

3. Recession Sales fall Sales fall Wages fall Wages fall Production declines Production declines Demand declines Demand declines Unemployment increase Unemployment increase Leads to depression Leads to depression

4. Depression High levels of unemployment High levels of unemployment Businesses go bankrupt Businesses go bankrupt Stock markets crash Stock markets crash People lose money invested People lose money invested

5. Setting the stage Banks gave out easy and cheap credit, and let people buy stocks on margin: buyers paid only a fraction of the share price and borrowed the rest. Banks gave out easy and cheap credit, and let people buy stocks on margin: buyers paid only a fraction of the share price and borrowed the rest. Because Canada’s economy was so closely tied to that of the United States, the New York crash brought down Canadian markets, too. Because Canada’s economy was so closely tied to that of the United States, the New York crash brought down Canadian markets, too.

6. Black Tuesday Drastic drop in the value of stocks. Drastic drop in the value of stocks. Shareholders panicked and sold their stock for whatever they could get. Shareholders panicked and sold their stock for whatever they could get. Overnight, individuals and companies were ruined. It was estimated that Canadian stocks lost a total value of $5 billion on paper in 1929. Overnight, individuals and companies were ruined. It was estimated that Canadian stocks lost a total value of $5 billion on paper in 1929.

9. Causes of the Great Depression Over-production Over-production Dependence on the United States Dependence on the United States High tariffs High tariffs Buying on credit Buying on credit Buying on a margin Buying on a margin

10. The Great Depression By 1933, almost a third of all Canadians are out of work By 1933, almost a third of all Canadians are out of work Many people lived near starvation Many people lived near starvation In the 1930’s there was no unemployment insurance and no government sponsored medical care. In the 1930’s there was no unemployment insurance and no government sponsored medical care.

12. Dirty Thirties Drought from 1930- 35 and 1937-38, ruined thousands for farms failed. Drought from 1930- 35 and 1937-38, ruined thousands for farms failed. “Dust Bowl” as poor farming techniques lead to soil erosion. “Dust Bowl” as poor farming techniques lead to soil erosion.

13. Farmers abandoned their farms as locust and dust storms destroyed their lively hood. Farmers abandoned their farms as locust and dust storms destroyed their lively hood.

14. Explain the Statement "By 1929, much of the money that was invested in the stock market did not actually exist." "By 1929, much of the money that was invested in the stock market did not actually exist."

15. Activity Analyse the causes of the great depression and determine what you would do to avoid another “great depression”. Write a paragraph describing the events that you would address to help decrease the impact of the great depression. Analyse the causes of the great depression and determine what you would do to avoid another “great depression”. Write a paragraph describing the events that you would address to help decrease the impact of the great depression.