THE GREAT DEPRESSION THE 1930S

What was the significance of the Stock Market Crash of 1929?

The Stock Market Crash of 1929 marked a pivotal moment in history, revealing deep-seated flaws within the economic infrastructure of the United States. Although it symbolized widespread panic and loss of faith in financial stability, it was not the sole cause of the Great Depression.

What does 'Buying on a Margin' refer to?

'Buying on a Margin' is an investment practice where investors purchase stocks by paying only a fraction of the stock's price upfront while borrowing the remainder from a broker. This was a prevalent and risky strategy during the economic boom of the 1920s.

What was one major cause of the Great Depression related to production?

Overproduction was a critical factor in the onset of the Great Depression, characterized by industries producing vast quantities of goods that significantly outpaced consumer demand, leading to unsold inventory and economic slowdown.

How did reliance on exporting staple products contribute to the Great Depression?

The heavy reliance on a narrow range of staple exports, such as wheat and minerals, rendered the economy vulnerable. This dependency led to fierce competition and left the economy exposed to vulnerabilities, such as natural disasters affecting crop yields.

What percentage of Canadian exports were sold to the USA before the Great Depression?

Before the Great Depression, approximately 40% of Canada's total exports were directed towards the United States, highlighting a significant economic dependence on its southern neighbor.

What was one effect of the Stock Market Crash on stocks?

The Stock Market Crash initiated a rush among investors to liquidate their stocks, resulting in a steep and rapid decline in stock prices, eroding wealth and draining confidence from the financial markets.

What did Herbert Hoover believe was the solution to the Depression?

Herbert Hoover maintained an optimistic perspective, asserting that the economic downturn could be overcome through individual resilience and efforts, advocating against extensive government intervention or immediate relief policies.

What was Roosevelt's plan for the economy during the Great Depression?

Roosevelt's response to the economic crisis was encapsulated in his 'New Deal,' which encompassed a series of ambitious programs aimed at providing immediate relief, fostering economic recovery, and implementing reforms to prevent future depressions.

What is Keynesian Economics?

Keynesian Economics, attributed to economist John Maynard Keynes, posits that during economic downturns, governments should actively invest and spend resources, even if it requires borrowing, to stimulate demand and reinvigorate the economy.

What was the purpose of 'Pogey' in Canada during the Depression?

'Pogey' was a Canadian government initiative that offered non-cash vouchers to individuals and families in need during the Depression, providing limited assistance for food and basic necessities, though it often fell short of what was adequate for survival.

What was the 'On-to-Ottawa Trek'?

The 'On-to-Ottawa Trek' was a significant protest movement during the Great Depression where thousands of unemployed workers traversed by freight train from Vancouver to Ottawa, advocating for job creation and fair wages.

What was included in Bennett's New Deal in Canada?

Bennett's New Deal proposed a series of reforms aimed at addressing the economic challenges of the Great Depression, including introducing progressive taxation, setting maximum workweek hours, establishing a minimum wage, implementing unemployment insurance, and regulating working conditions to improve workers' rights.