Comprehensive review notes for the Great Depression, the Prairie Dust Bowl, Canadian political responses, relief programs, unemployment, and recovery.
The Great Depression was the worst economic crisis in modern history. It began after the stock market crash of 1929 and spread across much of the world during the 1930s. Businesses closed, banks failed, and millions of people lost their jobs.
Canada was especially vulnerable because its economy depended heavily on exporting natural resources such as wheat, lumber, minerals, and fish. When global demand fell, Canadian industries and farms suffered badly.
By the early 1930s, unemployment reached extremely high levels, and many families struggled to afford food, clothing, and shelter.
Stocks are shares of ownership in a company. During the 1920s, many people believed stock prices would continue rising forever, so investing became extremely popular.
Buying on margin means purchasing stocks with borrowed money. Investors often paid only a small percentage of the price themselves and borrowed the rest from banks or brokers. When stock prices collapsed, many investors could not repay their loans.
A depression is a long period of severe economic decline characterized by unemployment, falling production, poverty, and weak consumer spending.
A tariff is a tax placed on imported goods. Governments used tariffs to protect domestic industries, but high tariffs during the Depression reduced international trade even further.
Relief camps were government work camps created mainly for unemployed single men. Workers performed physically demanding labour such as building roads or clearing land in exchange for food, shelter, and very low wages.
R.B. Bennett became Prime Minister in 1930. He believed the federal government should take stronger action to fight the Depression.
Many Canadians believed Bennett’s policies did not solve the economic crisis quickly enough.
Mackenzie King served as Prime Minister both before and after Bennett. At first, he believed provinces should mainly handle relief programs. Later, his government introduced more social reforms and recovery measures.
The Prairie provinces suffered severely during the 1930s. Long droughts combined with poor farming methods created massive dust storms called the Dust Bowl.
The Dust Bowl showed how environmental disaster and economic crisis could combine to create extreme hardship.
The New York Stock Market crashes. Investors panic and stock values collapse.
R.B. Bennett becomes Prime Minister and promises strong action against the Depression.
Unemployment rises dramatically. Businesses and banks fail across North America.
The On-to-Ottawa Trek begins as unemployed workers protest relief camp conditions.
Bennett proposes the Canadian “New Deal,” including social welfare reforms.
World War II begins. Wartime production helps revive the economy and reduce unemployment.
1. Why did buying on margin increase the dangers of stock market investing?
2. Why was Canada hit especially hard during the Great Depression?
3. Why were relief camps unpopular?
4. How did World War II help end the Depression?
5. What was the Dust Bowl?