The Great DepressionThe Great Depression

Trends of the 1920’sTrends of the 1920’s

High wagesHigh wages High productionHigh production High profitsHigh profits Demand for goodsDemand for goods Low unemploymentLow unemployment In the 1920’s, many people played the In the 1920’s, many people played the

stock marketstock market Hoping to get rich quickHoping to get rich quick

RecessionRecession

Sales fallSales fall Wages fallWages fall Production declinesProduction declines Demand declinesDemand declines Unemployment increaseUnemployment increase Leads to depressionLeads to depression

DepressionDepression

High levels of unemploymentHigh levels of unemployment Businesses go bankruptBusinesses go bankrupt Stock markets crashStock markets crash People lose money investedPeople lose money invested

Setting the stageSetting the stage

Banks gave out easy and cheap Banks gave out easy and cheap credit, and let people buy stocks on credit, and let people buy stocks on margin: buyers paid only a fraction margin: buyers paid only a fraction of the share price and borrowed the of the share price and borrowed the rest. rest.

Because Canada’s economy was so Because Canada’s economy was so closely tied to that of the United closely tied to that of the United States, the New York crash brought States, the New York crash brought down Canadian markets, too. down Canadian markets, too.

Black TuesdayBlack Tuesday

Drastic drop in the value of stocks.Drastic drop in the value of stocks. Shareholders panicked and sold their Shareholders panicked and sold their

stock for whatever they could get. stock for whatever they could get. Overnight, individuals and companies Overnight, individuals and companies

were ruined. It was estimated that were ruined. It was estimated that Canadian stocks lost a total value of Canadian stocks lost a total value of $5 billion on paper in 1929. $5 billion on paper in 1929.

Causes of the Great Causes of the Great DepressionDepression

Over-productionOver-production Dependence on Dependence on

the United Statesthe United States High tariffsHigh tariffs Buying on creditBuying on credit Buying on a Buying on a

marginmargin

The Great DepressionThe Great Depression

By 1933, almost a third of all By 1933, almost a third of all Canadians are out of workCanadians are out of work

Many people lived near starvationMany people lived near starvation In the 1930’s there was no In the 1930’s there was no

unemployment insurance and no unemployment insurance and no government sponsored medical government sponsored medical care. care.

Dirty ThirtiesDirty Thirties

Drought from Drought from 1930-35 and 1930-35 and 1937-38, ruined 1937-38, ruined thousands for thousands for farms failed. farms failed.

““Dust Bowl” as Dust Bowl” as poor farming poor farming techniques lead techniques lead to soil erosion.to soil erosion.

Farmers Farmers abandoned their abandoned their farms as locust farms as locust and dust storms and dust storms destroyed their destroyed their lively hood.lively hood.

Explain the StatementExplain the Statement

"By 1929, much of the money "By 1929, much of the money that was invested in the stock that was invested in the stock market did not actually exist." market did not actually exist."

ActivityActivity

Analyse the causes of the great Analyse the causes of the great depression and determine what depression and determine what you would do to avoid another you would do to avoid another “great depression”. Write a “great depression”. Write a paragraph describing the events paragraph describing the events that you would address to help that you would address to help decrease the impact of the great decrease the impact of the great depression.depression.