intro to the great depression
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DESCRIPTIONIntro TO The Great Depression. Causes of the Great Depression. Overproduction Dependence of Staples Canada’s Ties with America Tariffs and Trades Buying on Credit The Stock Market. Over Production. - PowerPoint PPT Presentation
Intro TO The Great Depression
Causes of the Great DepressionOverproductionDependence of Staples Canadas Ties with AmericaTariffs and TradesBuying on CreditThe Stock Market
Twenties were a time of new technologies> devices such as card and radios became popular so they started to over produce themThis created a problem> too many goods and not enough buyersPeople didnt need nor could they afford multiple luxuries so companies stopped creating themProblematic> companies cut down production so they down size staff which means less jobs = less money for people to buyPoor Fordism never had a chance~~
Dependence of StaplesWheat, fish, minerals, pulp and paper were important exports for CanadiansCompetition> Canada is the main supplier of wheat. Around this time, Australia and Argentina become suppliers.Because of the surplus (aka more product than demand) prices droppedCanadian farmers suddenly face a drought. Rich wheat feilds become known as the dust bowl. No crops mean no money.
Canadas Ties with America1920s Canada bought 65% of imports from America.Sells 40% of exports to the United StatesThis means Canada NEEDS the American economy to do well.Americas economy falls and ours does too.
Tariffs and TradesEuropean countries were used to bying Canadian and American goodsCanada attempts to implement protective tariffs> they can help foster the local economy but they can also make the item too expensive.Canadian businesses could not afford to buy goods from other countries because they were too expensive with tariff charges.
Buying on CreditPeople loved the idea of buying now and paying later The interest on their purchases came back to bite them. Interest was far greater than expected.People start getting laid off and cant afford monthly payments> products are taken away.Many people lost everything they owned.
Stock marketPeople were interested in the stock market.Stock Brokers would entice people to buy stock by lending them large amounts of money. A buyer could borrow up to 90% of their stock money and repay when the stock profited.Stocks didnt always go up> October 29th 1929, value of most stocks on the Toronto and Montreal markets drop over 50%
Class TaskCreate a mind map of the six causes of the great depression. Work on your speak easy assignments.Homework: Find a photo from the Great Depression (doesnt have to be Canadian). Give the people in the photo a story, dont do any extra research, just think of what some of the obstacles might be during this time. Story should be at least 2 paragraphs