Causes of the Depression Quiz Flashcards
Use this sentence to remember the 6 titles.
Cute turtles often hide closely together.
what is turtles
Too much credit buying of stocks
what is often
Overproduction and over overexpansion
hide
High tariffs choked off into national trade
cleverly
Canadas dependence on few primary products
together
Too much credit buying
An example of Canadas dependence on the United States
The USA being our largest supplier, big companies would go to Canada and set up branches here; if their business backfired, our economy went down. If we didn’t sell anything to them, we went down.
An example of too much credit buying of stocks
People were investing in stocks; people’s stocks were not rising, so people panicked and bought credit.
An example of overproduction and overexpansion
Factories were producing a lot in the 1920s; there were not enough buyers, so there were extra products, and families then didn’t have money for goods. With overproduction, there was a lot of stock.
An example for high tariffs choking off into national trade
In 1920, a lot of countries put on tariffs to protect their country, so prices were going up.
An example of Canadas dependence on few primary products
Canada depended on a few basic primary products: wheat, fish, pulp, and paper.
An example of too much credit buying
During the twenties, Canadians were encouraged to buy now and pay later; many people lost their jobs, so they couldn’t pay later.
