The 1930s: A Decade of Despair Flashcards
What marked the beginning of a recession?
The stock market crash on October 29, 1929
What is a recession?
less severe than a depression, a recession is a downturn in economic activity in which the value of goods and services declines
What is a depression?
a long period of severe economic and social hardship, massive unemployment and suffering
What is market economy?
an economic system in which individuals produce goods and prices are determined by supply and demand
What is a mixed economy?
an economic system in which both individuals and the government produce and sell goods. Canada has a mixed economy.
What is prosperity?
in the economic cycle, the period of economic growth and expansion
What effect did overproduction have on the economy?
In the 1920s demand was high. Once economy slowed many companies faced overproduction. Eventually, they cut back and produced less led to layoffs which meant people could not afford to buy consumer goods so sales slowed down even more
What was one of Canadas major weaknesses?
Its heavy dependence on the export of primary resources. Especially wheat and newsprint.
What is protectionism?
a system of using tariffs to raise the price of imported goods in order to protect domestic producers
What are reparations?
compensation from a defeated enemy for damages caused by war
How did many countries pay of the debt of WW1?
trade with the US, but as protectionism grew, international trade decreased and several countries were unable to pay back the loans. Relied on German reparations, germanys economy was in ruins. Germany wasn’t able to pay reparations, so countries could not pay their war debts.
What is speculation?
Any business venture in involving unusual risks or high, with a chance for large profits.
What was Black Tuesday?
October 29, 1929, when the New York Stock Exchange collapsed
What happened to farms during the 1930s?
They were hit by drought and dust storms due to over farming
What is pogey?
relief payments by a government, sometimes in the form of vouchers for food and other essentials. Getting them was a humiliating experience.
The problem with emergency assistance payments?
city families received more than country families, immigrants, aboriginal and women were particularly disadvantaged.
What is a transient?
an unemployed person who moves from place to place in search of work
What does anti-Semitism mean?
discrimination or hostility toward Jewish people
What is deflation?
the opposite of inflation, occurs when the price of goods and services fall
What is a majority government?
a government in which the ruling party has more seats in the House of Commons than all other parties combined