The Great Depression

Flashcards about the causes and effects of the Great Depression in Canada.

What were the main reasons for the start of the Great Depression?

Overproduction, dependence on exports, tariffs and protection, debt from WW1, buying on margin, and drought.

How did overproduction contribute to the Great Depression?

High demand for goods led to increased production, but when the economy slowed, companies faced overproduction because they produced more than they sold.

How did Canada's economic dependence on exports contribute to the Great Depression?

Canada relied on exporting primary resources like wheat and newsprint. When wheat prices fell due to overproduction and new competitors, farmers' incomes dropped, and many couldn't pay their debts.

How did tariffs and protectionism affect Canada during the Great Depression?

The US imposed heavy tariffs on imported goods, which slowed world trade and reduced demand for Canadian products.

How did debt from WW1 contribute to the economic downturn during the Great Depression?

Many countries relied on trade to repay debts from WW1. When world trade slowed, they couldn't repay these loans. Germany's inability to pay reparations further disrupted the debt repayment system between countries.

What is buying on margin, and how did it contribute to the Great Depression?

Buying stocks with borrowed money, with the expectation that the stock price would rise. When stock prices fell, people panicked and sold their stocks, causing a further decline in the market.

What is a recession?

A decrease in GDP for at least two quarters of a year.

What is a depression?

An extreme recession that lasts three years or more, leading to a decrease of GDP of 10% or more.

What were the effects of the depression on people

Evictions, loss of respect for the poor, low income tax revenue, company closures, and overall difficult times.

What was 'Pogey' during the Great Depression?

Government hand-outs given to the poorest people in exchange for resources at stores. Those receiving it had to wait in line and vow they had nothing of value and were homeless, receiving vouchers that caused humiliation

What was 'riding the rails' during the Great Depression?

People hopping on trains to travel from town to town looking for work.

Which groups were particularly disadvantaged during the Great Depression?

Immigrants, Aboriginals, Chinese, and women experienced discrimination and were often the first to lose jobs.

Did everyone suffer equally during the Great Depression?

Some people were lucky and actually did better in the Great Depression.

What was the CCF (Co-operative Commonwealth Federation)?

A political party founded in 1932 that believed capitalism bred inequality and greed and had caused the depression. It supported government control of the economy to benefit all Canadians equally.

What was the Social Credit Party?

A political party that opposed capitalism and believed money should be released into the economy for people to spend. It appealed to the poor and won a federal election during the depression.

What was the Union Nationale?

A party supporting Quebec nationalism, promising improved working conditions and social insurance programs but failing to deliver on these promises.

What is Keynesian economics?

Increasing government spending to stimulate the economy and advocating for government intervention during economic downturns.