Causes of the Great Depression

1. Over Production & Over Expansion

Definition high levels of production and new factories being built surplus of goods stockpile

How Did This Cause Contribute to the Great Depression

not a large enough demand for goods as a result, sales drop production slows down, workers are laid off this means less money in the hands of people less goods are sold everywhere

2. Canadas Dependence on Primary Resources

nation relied upon sales of wheat, fish, minerals, pulp and paper (raw/natural resources)

How Did This Cause Contribute to the Great Depression

a surplus of goods on world market this means that Canadian goods are not needed secondary industries also suffer (chain reaction)

3. Canadas Dependence on the U.S.A.

most important trading partner 65%imports from the U.S.A. 40% exports to the U.S.A.

How Did This Cause Contribute to the Great Depression

stock market crashes in U.S.A. Canadian economy also crashes Canada is too dependent on the U.S.A.

4. High Tariffs Slowed International Trade

tariffs (duties) placed on foreign goods coming into Canada done to protect Canadian economy

How Did This Cause Contribute to the Great Depression

tariff war begins international trade is choked off

5. Too much buying on credit

bought items on credit eg.: cars, furniture buy now, pay later plans are introduced

How Did This Cause Contribute to the Great Depression

people go into debt, they cannot pay what they owe items are repossessed (taken back by who owns them)

6. Credit buying of stocks

bought stocks on credit people borrowed money to do so and went deep into debt

How Did This Cause Contribute to the Great Depression

stock market crashed in 1929 no money to pay for stocks owing people are panicking so they sell many lose their lifes savings