Causes and Effects of teh Great Depression Flashcards
What were the 7 major causes of the depression in Canada?
- Over production and over expansion
- Canada’s dependence on primary products.
- Canada’s dependence on the US
- High tariffs choked off international trade
- Too much credit buying
- To much credit buying of stocks
- There are 6 causes, but I like the number 7 better poop toilet
What was the role of the US in Canada’s trek to Depression?
We are weak. 65% of imports and 40% of exports come from and go to the USA.
When the US got by the depression they didn’t want our stuff.
Something about US sneezing and everyone dying (the rest of the world gets pneumonia). Thanks Obama.
Explain credit buying and how it screwed us over.
The goal was to buy now, and pay later.
The issue was that the interest was insane and people started losing their jobs and their way of paying the debt off.
If they couldn’t pay it off, the peoples would just come and take and sell your stuff.
This also connects into the death chain triangle thingy from the over production.
How did over production and over expansion get into the death chain triangle thingy?
The death chain triangle thingy.
1. Produce too much/ buying too little
2. No one buys so they need to start making less (fire the workers)
3. The laid off workers can’t pay for them goods no more equals less bought
4. Rinse and repeat
Debt from credit buying also contributes (can’t buy cause their broke asf)
How did Canada’s Dependence on primary produces backfire?
They had them “staples” that everyone has and depended on.
West: Wheat
East: Fish
Everywhere else: Forestry
All the countries are trying to sell the same stuff tho so everyone just kept lowering their prices. - Race to the bottom.
Explain credit buying of stocks and where i failed. wat
Same as credit buying, but in stocks. The peps would buy as little as 10% to buy the stocks and (ideally) they would pay off the debt with what they errand.
October 29th, 1929 the stock markets crashed.
Businesses went bankrupt, and all that cash just turned into normal paper.
What the people couldn’t pay off was taken from them in the form of properties (cars, homes…)
What were the effects of the Great Depression on Canada?
Dem numbers fell.
Industrial production had fallen to 58% of what it was in 1929 by 1932.
Total national income fell to 55%.
We came second to the US
How did high tariffs choke off international trade?
Europe was recovering economically from the war in the 1920s and needed goods from North America, but could not afford them. Some countries began to adopt protective tariffs which raised taxes on foreign imported goods. This supposedly protected home industries from foreign competition. This choked off international trade because countries would stop exporting due to the taxes.
