Interwar

Interwar

Great Depression in Canada and the USA – 6 Reasons

1. Stock Market Crash (1929)

   • Triggered financial panic; banks and businesses failed.

2. Overproduction

   • Factories and farms produced more than people could buy.

3. Bank Failures

   • Many banks collapsed due to bad loans and panic withdrawals.

4. Unemployment

   • Businesses shut down; millions lost jobs.

5. Tariffs and Trade Barriers

   • U.S. introduced the Smoot-Hawley Tariff; reduced global trade.

6. Drought & Dust Bowl (Canada & USA)

   • Farming regions (like the Prairies) were hit hard, making poverty worse.

Events Leading to the Great Depression in Canada

• Stock Market Crash (1929)

Started in the U.S. but impacted Canada due to economic ties.

• Buying on Margin

People borrowed money to buy stocks; when prices fell, they couldn’t repay.

• Dependence on Exports

Canada's economy relied heavily on wheat and timber exports—both collapsed.

• Global Economic Downturn

Other countries also cut back on imports from Canada.

Important Economic Terms

• Inflation – General rise in prices over time.

• Deflation – General fall in prices; money gains value.

• Gross Domestic Product (GDP) – Total value of goods/services produced in a country.

• Tariff – Tax on imported goods to protect domestic industries.

• Buying on Margin – Purchasing stocks with borrowed money.

• Recession – Period of economic decline; less severe than a depression.

• Depression – Severe and prolonged downturn in economic activity.

Prohibition in Canada and the USA

• Definition: Ban on the production, sale, and transportation of alcohol.
  USA: 1920–1933 (18th Amendment & Volstead Act)
  Canada: Varied by province; mostly ended by mid-1920s.

Effects

• Black Market/Bootlegging – Illegal alcohol trade flourished.

• Rise of Organized Crime – Mafia groups like Al Capone’s thrived.

• Speakeasies – Secret bars where alcohol was illegally sold.
  Corruption – Police and officials were often bribed.
  
  

Rise of the Dictators (Interwar Period)

Adolf Hitler (Germany, Nazi Party)

• Kristallnacht (1938)

"Night of Broken Glass": Jewish homes, businesses, and synagogues were attacked.

• Enabling Act (1933)

Gave Hitler full dictatorial powers; ended democracy in Germany.

• Night of the Long Knives (1934)

Purge of Hitler’s political rivals, especially in the SA (Brownshirts).

Benito Mussolini (Italy, Fascist Party)

• March on Rome (1922)

  • Fascists marched to demand power; King appointed Mussolini as Prime Minister.

• Created a totalitarian state with secret police, propaganda, and no political opposition.

Joseph Stalin (USSR, Communist Party)

• Collectivization
  Took land from peasants and formed collective farms; led to famine.

• 5-Year Plans
  Rapid industrialization goals; focused on heavy industry over consumer goods.

Massacre of the Kulaks
Wealthier peasants (kulaks) who resisted collectivization were executed or exiled.