Chapter 5: Prosperity and Depression
The War is Over
During the Great War, Canada’s industries were focused on wartime goods which drove up the cost of everyday goods. Returning soldiers focused that prices were doubled what they had known and their wages did not keep pace with prices. This forced lower sales which further hurt the Canadian economy.
Unemployment increased and may wars vets could not find work. The 1920’s were a period of rapid economic growth for central Canada, the prairies and B.C.
Items like wheat were in a great demand and worldwide demand for minerals after WW|| created a period of growth in places like B.C. USA manufacturers such as Ford and GM built Branch Plants in Canada. These were factories built in Canada to avoid taxes on imported goods. Cities in Central Canada also benefited from increased manufacturing.
Value of goods increased 700%. Changing technologies was a spur to economic growth. 1920’s electricity was in widespread use in urban area only. The use of electricity increased productivity in the workplace.
The Assembly Line
A row of workers and machines along which work is passed until the final product is made; greatly increased good production. As the 1920’s came to a close employment increased, and more workers could afford to buy the new products and technology.
The Essay on World War I -Did Canada benefit from the war?
World War I was one of the worst battles in the world’s history. It was fought from 1914 to 1918 which involved several allied forces trying to stop Germany and its allies from trying to dominate all of Europe. On August 4, 1914, Britain declared war on Germany and its allies because of the infringement they made on The Treaty of London of 1839. Legally being a member of the British Empire, ...
A Stalled Economy for Others
The economic boom of the 1920’s did not reach the Maritimes. What was the reasons for this?
1. Shipbuilding had declined over the last 20 years and posts such as Halifax and St. John’s couldn’t modernize fast enough to compete with Montreal.
2. The Canadians government increased freight rates which cost Maritime companies move to ship their goods to the marketplace. This forces them to raise prices and lost them customers.
3. By 1926, 42% of manufacturing jobs were cut causing many to leave the region.
4. Hydroelectric power was slower to develop meaning industries could not take advantages of new technologies.
5. The Maritimes also lost jobs in the Primary Industry. The USA raised taxes on these goods and caused increased prices.
The Economy of Newfoundland
The high debt from WW|| and the costs of the railway was a major problem. Economic growth was hampered because major industrial investors here were from other places and did not reinvest in NL.
Lifestyle and Technology
The 1920’s were known as the “Roaring 20’s” because of the good times and social freedom of the decade.
The Haves
Economic prosperity led to new ideas such as the instalment plan which allowed customers to “buy now, pay later.” This was for those without money or the patience to wait.
Today, it is known as credit. This led to large numbers of people using credit, believing the good times were here to stay and never worried about being in debt.
Telephones and cars became very popular items.
1920 = 1/4 families had a telephone.
1929 = 3/4 families had a telephone.
The Have Nots
Not all Canadians benefitted from the roaring twenties. The working poor in rural areas, for example, would trade food with storekeepers for basic supplies. Many working poor in the city struggled to survive, many without electricity or the means to buy new products.
Many women lost their jobs once WW| ended and the soldiers returned home. Most girls left school by grade 8 to become wives and mothers. Some women who were educated were able to keep jobs as teachers, nurses, etc. Women university graduates had greater access to jobs but were not paid the same wages as men who did the same jobs. Child labor laws improved conditions for children in the work force. By 1929, they were not allowed to work in mines and factories.
The Essay on Good Earth Sieve Children Nectar
The Good Earth and Nectar in a Sieve Comparisons The Good Earth and Nectar in a Sieve were two very different novels. One was about a family in India under Hindu beliefs. The other was about a family in China that followed Buddhist beliefs. Both books share similar ideas. Although this is the case, the books have some unlike ideas. In Nectar in a Sieve and The Good Earth, three things are ...
Residential Schools
Were built to assimilate aboriginal children, or make them more white. Assimilate means to give up your own culture and adopt the mainstream culture.
Aboriginals were expected to adopt British customs and cultures and abandon their own. Government law stated all children 7-15 years old had to attend school. Children were uprooted from their homes and forbidden to speak their own language, wear traditional clothing and practice their cultural celebrations. Often times they were beaten by the English if they did.
Sports
1920’s were called Canada’s “Golden Age of Sports.” Shorter working hours and more money gave Canadians more free time to play and watch sports. Women’s rules were different from the men. It was considered unhealthy for women to exert themselves as much as men.
Causes of the Great Depression
The Stock Market Crash
On Tuesday, Oct. 29, 1929, New York’s stock market crashed. This was called, “Black Tuesday.” This was the beginning of the Great Depression. A stock is a share in the ownership of a company. Companies sold stocks to expand or develop new products. In return, a person received a dividual or share in the company’s profit.
During WW|, Canadians had bought victory bonds– used to raise money for the war. Paid people back plus interest after they were cashed in. This experience caused many people to invest. People ignored the risk.
Stock fluctuate and are not a guaranteed investment.
By Tuesday, Oct. 29, shares continued to drop, investors, panicked and tried frantically to sell their shares. No one wanted to buy them. Consequently, the Stock Market crashed.
The Roots of the Depression
1. Spending and buying habits of the 1920’s– easy credit led to mass buying by Canadians. Many could not afford to pay back their debt.
2. Credit card system– led to demand on goods that manufacturers could not meet which forced them to sell shares and stocks for expensive new equipment to produce more goods faster.
The Essay on The Great Depression: A Social Credit Solution
During the Great Depression of the 1930’s, money had become a huge issue. There never seemed to be enough money to go around, not allowing people to support themselves and purchase goods. However, there was a solution based on the theories of a Scottish engineer, Major Douglas. Douglas felt that capitalism was a wasteful economic system, and claimed that financial institutions such as banks had ...
3. Manufacturing practices– they mass produced more goods than customers wanted and stockpiled them in warehouses.
4. Canada’s close economic ties with the USA– because of their own economic problems, USA investors pulled out of Canada, leaving thousands without work.
5. Canada’s reliance on exports– by 1932, 50% of international trade dropped. Hundreds of thousands of people lost their jobs. Countries raised tariffs on imports.
Effects of the Great Depression
Failing Economic Policies
The government thought that the Depression was only a temporary situation that would end quickly– it did not!
Changes in Social Conditions
1. There was no work to be found and certain minority (women, aboriginals, etc.) experienced discrimination when applying for jobs.
2. Luxuries vanished except for the rich.
3. People were hungry and homeless.
4. Malnutrition and diet-related diseases like scurvy was common.
5. “Hand-me-downs” clothing was the norm.
6. No government programs (Medicare, child tax credits, etc.)
Dole/Pogey means public relief and it was humiliating to the people who required it. They have to give up their driver’s license and/or give up alcohol.
Political Changes
Canadians felt that the current political parties were not effective. Consequently, new parties were formed.
1. Communist Party
2. Co-operative Commonwealth Foundation
3. Social Credit Party
4. Union Nationale Party of Quebec
Communist Party
-belief that all people should share in society’s prosperity.
-protested against social injustice.
-supported government assistance for relief and housing.
Co-operative Commonwealth Federation
-believed in public ownership of utilities and transportation.
-government funded pensions and children’s allowances.
-believed in health and welfare insurance.
-worker’s compensation and El
Social Credit Party
The Essay on The Great Depression People Economic Government
The Great Depression of 1929-33 was the most severe economic crisis of modern times. Millions of people lost their jobs, and many farmers and businesses were bankrupted. Industrialized nations and those supplying primary products which were all affected in one way or another. In Germany the United States industrial output fell by about 50 per cent, and between 25 and 33 per cent of the industrial ...
-believed government should give all people $25 credit. This would revive the business cycle and end the Depression.
Politics didn’t end the Depression. Economic conditions gradually improved, international trades increased and the drought in the Prairies ended. WW|| was the beginning of the end and ended the Depression.
