History Unit 2: Causes Of The Great Depression

Question 1

What was the causes of the Great Depression

Answer 1

1. Overproduction and over expansion
2. Canada dependence on a few primary products
3. Canada dependence on the United States
4. High tariffs chocked off international trade
5. Too much credit buying

Question 2

What does over production and over expansion mean?

Answer 2

• almost every industry was expanding
• spent profits adding to factories or building new ones
• huge supplies stockpiled in warehouses
  
  • > therefore factory owners began to panic and slowed down production; workers got laid off; fewer families had money to spend on goods; in return slowed down sales even more

Question 3

What does Canada dependence on a few primary products mean

Answer 3

Canada to dependant on its wealth on primary or basic products (I.e staples; wheat, fish, minerals, pulp and paper

• heavy demand Canada would prosper; however if there is a surplus in these goods or if foreign countries stop buying Canada would economy would be in trouble
• secondary industries (in maritime and west) would suffer from slowdown in production.
• competition for wheat with Argentina and Australia the price began to drop
  
  • > western farmers faced with drought
• little income farmers could not purchase machinery from eastern Canada could not pay mortgages on their farms, railway and farmers began to feel the pinch (chain reaction)

Question 4

Describe Canada dependence on the United States

Answer 4

Canada was closely link to the United States

• bought 65 percent of our imports from America
• forty percent of exports were sent to the USA
• American was most important trading partner
• when USA hit depression it was inevitable Canada would to

Question 5

Describe high tariffs choked off international trade

Answer 5

• put high tariffs on countries
  
  • > world trade began to slow down
• high tariffs protected home industries but cooled off international trade

Question 6

Describe buying to much on credit

Answer 6

“Buy now pay later”

• credit was a established custom
• wage owner took sick or got laid off it was impossible to keep up with the payments
• many people lost everything.

Question 7

Define prosperity

Answer 7

Lots of jobs

Question 8

Define recession

Answer 8

Few jobs

Question 9

Define depression

Answer 9

Not many jobs

Question 10

Define recovery

Answer 10

Jobs starting again