The Great Depression

The Great Depression Canadian History

Picture Analysis

Boom to Bust • 1920s saw Canada prosper under the newly established ‘consumer’ society. • Things were good for many Canadians during the 1920s but 1929 brought an end to the prosperity. • What happened in 1929 that brought an end to the prosperity?

The Great Depression • The Great Depression was a dramatic worldwide economic downturn. Industrialized and industrializing countries were hit especially hard. International trade declined sharply, as did personal income, tax revenues, prices and profits. • Growth virtually stopped in many countries. • Agriculture was hit especially hard in Canada.

Economic Bust • During the 1920s unemployment was extremely low, by 1933 27% of the labour force in Canada was out of work. • 1/5 of Canada needed government assistance. In some places is was as much as 2/3. • 1932- Industrial Production fell 33% from the 1929 levels.

Chain Reaction • Factories reduced work weeks, due to lack of sales, and people were laid off. People without jobs were unable to buy products. The stores dropped their prices but that did not increase sales. Real wages of employees did not fall (for those still employed) but their weekly hours of work shrank.

Market Crash • ‘Black Tuesday’ – October 29, 1929 • American Stock Market crashed and brought a sharp end to prosperity in Canada and the rest of the world. • Marked the end of prosperity, but might not be the real cause. We had too much faith in the economy during the 1920s.

Canadian Culture in the Face of Hardship • Despite hard times Canadian culture continued to develop during the 1930s. • It was a way for people to escape the hardship of everyday life.

The Great Depression