Social Studies 9Social Studies 9Unit 3 Unit 3

Chapter 6: Prosperity and Chapter 6: Prosperity and DepressionDepression

Chapter Study - Chapter Study - Answers       Answers       

Section I/ Prosperity in the Section I/ Prosperity in the 1920s:1920s:

1.  The text describes the 1920’s as 1.  The text describes the 1920’s as years of economic growth and years of economic growth and prosperity, during which newly prosperity, during which newly developed technologies became part developed technologies became part of everyday life for many Canadians. of everyday life for many Canadians. During the 1930’s, Canadians During the 1930’s, Canadians experienced sever economic experienced sever economic hardship… The Great Depression. hardship… The Great Depression.

2. The first of two economic surprises 2. The first of two economic surprises that awaited the returning soldiers that awaited the returning soldiers after World War I was that goods after World War I was that goods cost as much as 2X the price they cost as much as 2X the price they had due to goods and services had due to goods and services being scarce during the war. The being scarce during the war. The second was that wages hadn’t kept second was that wages hadn’t kept up so people couldn’t afford the up so people couldn’t afford the necessities. This lowered sales and necessities. This lowered sales and jobs were cut, so soldiers were jobs were cut, so soldiers were unable to find work.unable to find work.

3. Ford, General Motors and General Electric 3. Ford, General Motors and General Electric were U.S. companies that built branch were U.S. companies that built branch plants in Canada to avoid the tariff, or tax, plants in Canada to avoid the tariff, or tax, on products imported into Canada. on products imported into Canada.

4. The Maritimes were different than the 4. The Maritimes were different than the rest of the country in that their economy rest of the country in that their economy had been based on shipbuilding. This had been based on shipbuilding. This had been on the decline and no other had been on the decline and no other industry was there to replace it. The industry was there to replace it. The ports of Halifax and Saint John could not ports of Halifax and Saint John could not compete with Montreal, which had compete with Montreal, which had received federal money to help with its received federal money to help with its expansion.expansion.

5. Hydroelectricity developed slowly in 5. Hydroelectricity developed slowly in the Maritimes because less money the Maritimes because less money was available to invest in it. was available to invest in it.

6. The pulp and paper industry develop 6. The pulp and paper industry develop slowly in the 1920’s because the lack slowly in the 1920’s because the lack of electrical power meant that of electrical power meant that companies were not able to take companies were not able to take advantage of the new technologies. advantage of the new technologies.

Section II/ Lifestyle and Section II/ Lifestyle and Technology:Technology:

1. Cars topped people’s wish lists in 1923. 1. Cars topped people’s wish lists in 1923. The cost was $440 for a Ford automobile. The cost was $440 for a Ford automobile.

2. Telecommunications change in the 2. Telecommunications change in the 1920’s with telephones becoming more 1920’s with telephones becoming more popular. This allowed for communication popular. This allowed for communication between people in isolated area or in between people in isolated area or in different regions of the country.different regions of the country.

3. Two groups that did not benefit 3. Two groups that did not benefit from the prosperity in the 1920’s from the prosperity in the 1920’s were the working poor and women.were the working poor and women.

4. Conditions change for women after the 4. Conditions change for women after the war as they were no longer allowed to war as they were no longer allowed to work. They were to return to being work. They were to return to being housewives and mothers. Educated housewives and mothers. Educated women were to become teachers.women were to become teachers.

5. The government mistreated the First 5. The government mistreated the First Nations Groups by trying to assimilate Nations Groups by trying to assimilate them into mainstream culture. them into mainstream culture.

6. The best way for the government to 6. The best way for the government to assimilate the First Nations Groups assimilate the First Nations Groups was to make it compulsory for all was to make it compulsory for all First Nations children aged 7-15 to First Nations children aged 7-15 to attend school. It was believed that attend school. It was believed that residential school would remove residential school would remove children from the influence of their children from the influence of their parents. They were uprooted from parents. They were uprooted from their homes and forbidden to speak their homes and forbidden to speak their own languages, wear their own their own languages, wear their own clothes, or participate in their own clothes, or participate in their own cultural celebrations. cultural celebrations.

7. Fred Loft attempt to improve Canadian 7. Fred Loft attempt to improve Canadian First Nations Groups by founding the First Nations Groups by founding the League of Indians in 1918. He wanted League of Indians in 1918. He wanted to improve the standard of education. to improve the standard of education. He encouraged bands from across He encouraged bands from across Canada to join the league.Canada to join the league.

The government responded in 1927 The government responded in 1927 by amending the Indian Act to by amending the Indian Act to make it illegal for First Nations to make it illegal for First Nations to organize politically or to hire organize politically or to hire lawyers to represent them in any lawyers to represent them in any claims against the government. claims against the government.

8. 8. Two new leisure activities in the 1920’s Two new leisure activities in the 1920’s were listening to the electric radio and were listening to the electric radio and attending motion pictures.attending motion pictures.

9. 9. Sports changed for women during the Sports changed for women during the 1920’s as women began to take an active 1920’s as women began to take an active role in organized sports.  In 1928, women role in organized sports.  In 1928, women were able to compete in track and field at were able to compete in track and field at the Olympics for the first time.the Olympics for the first time.

10. 10. The flappers were one group of women The flappers were one group of women that many considered offensive. These that many considered offensive. These young urban women took pleasure in young urban women took pleasure in rebelling against conventions. They did rebelling against conventions. They did things that were traditionally male things that were traditionally male activities, like drinking alcohol and smoking.activities, like drinking alcohol and smoking.

Section III/ Causes of the Section III/ Causes of the Great Depression:Great Depression:

1. The critical event that marked the 1. The critical event that marked the end of the 1920’s occurred on end of the 1920’s occurred on October 29th, 1929. On this date, October 29th, 1929. On this date, known as Black Tuesday, New York’s known as Black Tuesday, New York’s stock market crashed. stock market crashed.

2. 2. Stock:Stock: the capital of a company the capital of a company divided into portions or shares of divided into portions or shares of uniform amount that can be bought and uniform amount that can be bought and sold.sold.

Share:Share: one of the parts into which one of the parts into which the ownership of a company is divided. the ownership of a company is divided. Shares in a company can be bought or Shares in a company can be bought or sold on the stock market. sold on the stock market.

Dividend:Dividend: money to be shared by money to be shared by those to whom it belongs. If a company those to whom it belongs. If a company makes a profit, it makes a profit, it declares a dividend to declares a dividend to the shareholders, or owners, of the the shareholders, or owners, of the company.company.

3. The causes of the Depression:3. The causes of the Depression: The stock market crash was only the immediate cause of The stock market crash was only the immediate cause of

the depression.the depression. The roots can be traced back to the spending and buying The roots can be traced back to the spending and buying

habits during the 1920s.habits during the 1920s. Manufacturers borrowed money or sold stocks to pay for Manufacturers borrowed money or sold stocks to pay for

expensive new equipment.expensive new equipment. People became greedy and bought stocks on credit.People became greedy and bought stocks on credit. Companies began to produce more goods than Companies began to produce more goods than

consumers wanted and farmers continued to grow large consumers wanted and farmers continued to grow large crops of wheat even after the demand had peaked.crops of wheat even after the demand had peaked.

Canada’s economy was closely linked to the US, so as Canada’s economy was closely linked to the US, so as the US economy slowed, Canada lost much of that trade.the US economy slowed, Canada lost much of that trade.

Canada depended heavily upon trade with the rest of the Canada depended heavily upon trade with the rest of the world. By 1932, international trade dropped. Many world. By 1932, international trade dropped. Many people around the World had lost their jobs and tariffs on people around the World had lost their jobs and tariffs on imports had also increased.imports had also increased.

Many banks in the US failed, wiping out the savings of Many banks in the US failed, wiping out the savings of thousands of people.thousands of people.

Unemployed workers could not pay for purchases they Unemployed workers could not pay for purchases they bought on credit.bought on credit.

4. The stock market crashed because during the First 4. The stock market crashed because during the First World War people were encouraged to buy victory World War people were encouraged to buy victory bonds. These were guaranteed certificates that were bonds. These were guaranteed certificates that were used to raise money for the war. After the war, these used to raise money for the war. After the war, these bonds could be cashed in for the purchase price plus bonds could be cashed in for the purchase price plus an additional interest. This experience encouraged an additional interest. This experience encouraged people to buy stock. During the good times of the people to buy stock. During the good times of the 1920s, stock prices just kept rising. People ignored 1920s, stock prices just kept rising. People ignored the risk associated with investing in stocks – the the risk associated with investing in stocks – the value fluctuates it is not a guaranteed investment.value fluctuates it is not a guaranteed investment.

On Thursday, October 24th, 1929 share prices began On Thursday, October 24th, 1929 share prices began falling dramatically on the New York Stock exchange. falling dramatically on the New York Stock exchange. Shares became worth less and less money.Shares became worth less and less money.

Shares continued to drop on the Friday and the Shares continued to drop on the Friday and the following Monday.following Monday.

By Tuesday, October 29th, thousands of investors By Tuesday, October 29th, thousands of investors crowded the NYSE frantically trying to sell their crowded the NYSE frantically trying to sell their stocks before they lost even more money. stocks before they lost even more money.

No one wanted to buy them, and prices fell even No one wanted to buy them, and prices fell even more. Without the confidence of investors, the stock more. Without the confidence of investors, the stock market crashed.market crashed.