depression: a period during which business, employment, and stock market values decline or remain at a low level of activity. A depression is a more serious and prolonged version of a recession.
1) New York Stock Market Crash
- "Black Tuesday" - Oct. 29, 1929
- speculation, corruption, lack of regulation, and panic all contributed to the mass selling of stock on this day causing stock values to plummet
2) Canada depended too much on the sale of three raw materials(i.e. wheat, lumber, minerals)
- demand for these products suddenly dropped dramaticallyeg wheat 1929: $2 / bushel 1932: $0.20 / bushel
3) Rich countries shortly after 1929, including Canada, increased tariffs to protect local industries. This helped to lengthen the Depression because new foreign markets were reduced. World trade was at a standstill.
4) Canadian government policy of no investment in the economy. It believed that business should not be hindered nor helped by government. Also there was a lack of a social safety net.
i.e. little welfare, no E.I. (formerly known as U.I.C.), little gov. money in job creation, few investment laws which bred corruption
5) Prairie Drought
- abundance of soil erosion caused by overplowing and very dry weather led to the "Dirty Thirties"
- abundance of grasshoppers hurt crops
Social Conditions
Areas of Canada most negatively affected by the Great Depression:
#1: Prairies #2: BC and Maritimes #3: Ont. and Que.
- 15% to 20% unemployment
- no E.I., welfare consisted of food vouchers only for women and children
- food line ups
- work camps: 20 cents a day for single men in the bush in a jail like setting
- strikes: workers sought raises but received cutbacks
- riding the trains to find work or protest in Ottawa
CCF (Cooperative Commonwealth Federation)
- founded in 1932 by J.S. Woodsworth
- later became the NDP
- struggled as they were accused of being communists
- stood for democratic socialist principles
i.e. government ownership of some businesses
government sets wheat prices
workers have the right to form unions
welfare for the poor
Social Credit
- started in Alberta by a radio evangelist, William Aberhart
- became premier in 1933
- supported giving each person $25 to help the economy grow
- felt that banks were the main reason why the Depression was continuing