Chapter 6 – Prosperity and Depression

Chapter 6 – Prosperity and Depression Grade 8

Prosperity and Depression • The War is Over (1918) • Things did not quickly return to normal why? • - Economy changes from wartime to peacetime economy • - Europe ’s demand for Canadian goods dropped off causing a slump in the economy • - Hardest hit were the Maritimes and the Prairies (Fish & Wheat demand declined) • - Price of regular goods was going up, but wages were not, causing slow sales • - Unemployment went up

Decades of Change • A Buoyant Economy for Some (1923) • By 1923, Central Canada, BC, and The Prairies, had begun to recover from the economic slump, and entered a period of growth why? • - Agriculture production increased as the demand went up • - Mining activity increased in these areas • - Trade with USA increased mostly because of the demand for pulp and paper • - Branch Plant Factories(a business owned and controlled by a company in another country) built to avoid tariffs • - Changing Technologies increased production: • Technology Changes:1) Electricity 2) Assembly Line 3) Electric Appliances

Decades of Change • Stalled Economy for Others • The Economic boom of the 1920’s did not get to The Maritimes or Newfoundland, why? • - A decline in shipbuilding after the war • - Increased cost of railway freight rates • - Lack of electricity in the area,As a result: Secondary Industries (Pulp & Paper) slow to develop.Primary Industries (Farm & Fisheries) exploited (Overused) • ** This brought about talks for Maritime Union**

Decades of Change • Lifestyle and Technology • The Roaring 20’s - The 1920’s were called this because of the good times and social freedoms.New Technologies brought on mass productionThe Haves • Installment Plans – by now pay later introduced, as people thought the good times would last for ever. • New Luxury Items for Purchase: • - Cars - ownership became possible • - Telephones – ¼ families in 1920, by 1929 ¾ of families • - Electrical Appliances

Decades of Change • The Have Nots • The have nots – those who did not prosper • Who made up the have nots: • 1) Rural Canadians - many worked but had trouble making ends meet (Working Poor) • 2) Immigrants – (Working Poor) • 3) Women who were employed and lost jobs due to the return of the soldiers • 4) First Nations – Government still hoping for assimilation – where first nations would become part of mainstream culture, and give up their own values, beliefs, and cultures. • Assimilation pushed along by government by forcing first nation students into schools where their personal cultures were forbidden.

Decades of Change • Leisure/Sport/Changing Attitudes • Leisure activities: included radio and motion pictures (Silent movies) • Sports: included baseball, football, boxing, and hockey • Changing Attitudes: Clubs introduced, dancing, alcohol, and many new types of fashion. All of these things were considered controversial to many.

Decades of Change • Causes of The Great Depression • Black Tuesday - Oct.29, 1929 – this signified the end of the Roaring 20’s and the beginning of The Great Depression, as The New York Stock Exchange crashed. • Find the definitions of the following in your text: • Stocks – • Shares – • Dividend – • Victory Bonds – • Interest –

Decades of Change • Roots of the Depression • Causes of the Depression, dates back to “The Roaring 20’s” • 1) over spending in the 20’s • 2) credit was too easy • 3) over production • 4) Close connection to the US Economy • 5) Decrease in International Trade • 6) Bank Failures • 7) Unemployment Grew • Depression lasted most of the 30’s, and only recovered with the start of World War 2.

Decades of Change • Social Conditions • 1) unemployment ruined lives • 2) disadvantaged groups conditions worsened • 3) Luxury items almost all but disappeared • 4) People were homeless and hungry • 5) No Government programs to help those in need • People in need resorted to: • 1) begging • 2) working in relief camps to help build roads etc. • 3) same became hobos and rode the rails

Decades of Change • Escape From Hard Times • - Children found ways to entertain themselves • - These were times of creativity and resourcefulness • Political Changes • - Canadians lost faith in Political parties • - New parties were formed as result • - New parties brought new ideas

Decades of Change • New Parties • 1) Communist Party – all people share in the prosperity equally • 2) CCF – a coalition of farmers, labor union leaders, and professors, they believed in private ownership and government services • 3) Social Credit Party – felt the Government should hand over money to people to get the economy moving again. • 4) National Party of Quebec – a group of former Liberals and Conservatives who had ideas for change to the end the Depression • **None of these parties ways ended the depression, times just gradually started to improve.**

Chapter 6 – Prosperity and Depression