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The Great Depression 1930s - Coggle Diagram
The Great Depression 1930s
Causes
Over-Production
Companies make more goods than people can buy which lays people off
Dependence on Primary Products
The Canadian economy depended on selling a few raw materials
There was a surplus on the world market and other countries weren't buying from Canada
Dependence on the U.S
40% of our experts went to the U.S
When they couldn't afford our products, our industries suffered
High Tariffs
Nations raised tariffs to protect home industries, cutting down trade
PM King was concerned that Canadians would buy American chicken so he put extra 10% tariff to force Canadians to buy Canadian chicken
Too Much Credit Buying
During 1920's people were told to 'buy now & pay later'
People borrowed too much money to pay for things
Stock Market
Many people tried to get rich by investing in the stock market
Barb borrowed money from the bank to invest in the stock market which failed
Solutions
Political Parties
R.B Bennet
Control prices: Businesses cannot take advantage of Canadian citizens
Guarantee fair treatment of employees
Limit the hours of work
Establish unemployment insurance
Set minimum wages
William Aberhart
$25.00 per month for every adult
Every citizen will receive a “social credit” or
cash payment
With extra cash, people will spend more and
the economy will thrive
James S. Woodsworth
Public ownership of banks, transportation, and
electric power
Improved health and social welfare services
Government support of agriculture
Maurice Duplessis
Protect the French language, Roman Catholic
religion, and French culture
Wanted to make separate economic policies for
Quebec
Improve working conditions, find buyers for farm products, build affordable housing
Effects
Black Tuesday
Losing of jobs and failing of businesses and such
A sharp decline in the market that had investors loosing money
On to Ottawa Trek
Employers would lay off young, single men for older and married men to get the job
Creation of Unemployment Relief Camps for young men to work at to avoid a revolution
They hated it so they decided to head to Ottawa to protest their displeasure to the Prime Minister
They would ‘ride the rails’ to look for
work but were rarely successful
What is the Great Depression?
The worst economic down-turn the country had ever faced
Life
many people lived near starvation from not having any money
Those with jobs or were wealthy weren't effected like this as they were able to live comfortably
People began to turn to ways to distract themselves from the devastation, such as films and other arts
many people wrote letters to the prime Minister asking for help as at this point, the only way that they could live was receiving government relief
The Business Cycle
Peak or Prosperity
Unemployment is low which means higher wages and production, during this stage people are willing to take risks
Recession
Economy is in decline for more than a few months, demand for goods & services is low. Unemployment & businesses failures increase
Trough or Depression
The low point of recession is called a trough, severe or long recession is a depression. Unemployment is extremely high, people have little money to spend, so sales & trade are low. Most recessions & cycles do not become depression.
Recovery
The eventual improvement of the economy. Governments spend money, banks lower interest rates which encourages people to spend rather than save. Higher demand for more products and service encourage businesses to hire more workers. Wage earners now have more money to spend so demand for goods increases.