C O N D I T I O N L E A D I N G T O T H E D E P R E S S I O N
Proceeding the Great Depression the world had found itself in an economic boom. The 1920’s, referred to as the Roaring Twenties the economy was in a state of technological achievement and growth. “Things such as electricity, radio, telephone and cars were being produced for the masses” (DeGrace). Many people had decided to move into cites to more easily surround themselves with these technologies and to find jobs in manufacturing. Citizens had begun to invest money into stocks and deposit savings into banks, which along with the manufacturing growth, caused many countries to have money supply increase. Unfortunately many countries could not handle the growth which lead …show more content…
These high tariffs were place on foreign imports. The government thought this would make them some money, but unfortunately had the opposite effect. The high taxes eventually led to many countries no longer wanting to trade with Canada. With foreign trade no longer making any money for the country, Canada was left to fend for its self and find another way to make money. With high taxes being imposed, many Canadians turned to domestic products, and relied on a few main ones such as fish, wheat, minerals, and pulp and paper. Many of the jobs in Canada were focused around the production of these products, thus when no one was buying them, due to lack of money, these jobs were lost. These products were also Canada 's main exports, accounting for a third of Canada’s Gross National Income (Struthers). Once other countries were hit by the same financial hardships, they stopped buying, causing our market to also fall. This point relates back to the third cause of the depression, reduced purchasing. Another factor that affecting these products was the drought that hit mid western Canada. Causing many of the crops, that Canada relied heavily on for revenue, to
Proceeding the Great Depression the world had found itself in an economic boom. The 1920’s, referred to as the Roaring Twenties the economy was in a state of technological achievement and growth. “Things such as electricity, radio, telephone and cars were being produced for the masses” (DeGrace). Many people had decided to move into cites to more easily surround themselves with these technologies and to find jobs in manufacturing. Citizens had begun to invest money into stocks and deposit savings into banks, which along with the manufacturing growth, caused many countries to have money supply increase. Unfortunately many countries could not handle the growth which lead …show more content…
These high tariffs were place on foreign imports. The government thought this would make them some money, but unfortunately had the opposite effect. The high taxes eventually led to many countries no longer wanting to trade with Canada. With foreign trade no longer making any money for the country, Canada was left to fend for its self and find another way to make money. With high taxes being imposed, many Canadians turned to domestic products, and relied on a few main ones such as fish, wheat, minerals, and pulp and paper. Many of the jobs in Canada were focused around the production of these products, thus when no one was buying them, due to lack of money, these jobs were lost. These products were also Canada 's main exports, accounting for a third of Canada’s Gross National Income (Struthers). Once other countries were hit by the same financial hardships, they stopped buying, causing our market to also fall. This point relates back to the third cause of the depression, reduced purchasing. Another factor that affecting these products was the drought that hit mid western Canada. Causing many of the crops, that Canada relied heavily on for revenue, to