Causes of the great deppresion Flashcards
What were the long term causes of the great deppresion in canada.
Credit buying, Buying on the margin, Market manipulation, Lassiez faire capitalsim, Tariffs, Overproduction, Over reliance on the US.
How was Credit Buying a cause of the great deppresion
People would go into debt due to buying lots of things they didnt need on credit.
How was Buying on the margin a cause of the great deppresion
When people bought stocks with only 5% down they owed lots money to stock brokers.
How was Market Maniplation a cause of the great deppresion
When rich people would over inflate stocks then pull the rug lots of people went into debt.
How was Laissez Faire Capitalism a cause of the great deppresion
When the government let the economy run by its self lots people lost money from taking out lots of loans without anyone stopping them.
How was Over production a cause of the great deppresion
Overproductionn led to more consummerism and credit buying
How was Over reliance on the US a cause of the great deppresion
When US companies had to shut down branch plants in canada it led to lots of lost jobs.
How were tariffs a cause of the great deppresion
Taxes on goods coming over the border became very expensive from the US becuase canada needed trade money from the US.
What was the short term cause of the great deppression
The stock market crash the short term cause of the great deppresion leading to lots of people losing lots of money from stocks and paying back stock brokers.
