Essays /

Canada And Great Depression Essay

Essay preview

The Stock Market crash in New York led people to hoard their money; as consumption fell, the American economy steadily contracted, 1929-32. Given the close economic links between the two countries, the collapse quickly affected Canada. Added to the woes of the prairies were those of Ontario and Quebec, whose manufacturing industries were now victims of overproduction. Massive lay-offs occurred and other companies collapsed into bankruptcy. This collapse was not as sharp as that in the United States, but was the second sharpest collapse in the world. Canada did have some advantages over other countries, especially its extremely stable banking system that had no failures during the entire depression, compared to over 9,000 small banks that collapsed in the United States. Canada was hurt badly because of its reliance and other commodities, whose prices fell by over 50%, and because of the importance of international trade. In the 1920s about 25% of the Canadian Gross National Product was derived from exports. The first reaction of the U.S. was to raise tariffs via the Smoot-Hawley Tariff Act, passed into law June 17, 1930. This hurt the Canadian economy more than most other countries in the world, and Canada retaliated by raising its own rates on American imports and by switching business to the Empire.[19] In an angry response to Smoot–Hawley, Canada welcomed the British introduction of trade protectionism and a system of Commonwealth preference during the winter of 1931-32. It helped Canada avoid external default on their public debt during the Great Depression. Canada had a high degree of exposure to the internati...

Read more

Keywords

-32 000 17 19 1920s 1929 1930 1930s 1931 1932 1934 1935 1937 1938 1939 1961 2 20 21 22 25 50 9 achiev act activ ad adequ administ advantag affair affect aid air airlin alreadi also although american amount anger angri anim argu around asbesto assist assum atlant attempt attitud auspic australia avoid back bad bail balanc bank bankrupt bankruptci base becam becom began begun believ bennett billion blame boom bring britain british budget built burden busi businessman call came campaign canada canadian cancel capit cartoon caus central challeng chariti citizenship claim close cnr code colin collaps collect combat commiss commod commonwealth compani compar compens competit condit congress conserv consider consumpt contract control cooper countri courag crash creat crisi critic crush cut deal debt decreas deepen default defeat deficit defunct degre delano demand democrat depress deriv describ design despit develop difficult direct discours disloc divers domin dominion doubl downturn dramat drop due duti econom economi edit educ effort elect emerg empir employ employe entir entitl error especi establish eventu exampl excit expans export exposur extens extern extrem fail failur faith fall feder fell first focus form fought franklin front gave gdp get given gordon govern great greatest gross halt hard hawley help high histori hit hoard home hous howev hurt immens imperi implement import improv increas independ industri infrastructur initi insur interest intern intervent introduc introduct isa job join judici june key king labour landscap larg large-scal larger law lay lay-off led left legisl level liber lie link local lose lost mackenzi made make make-work manag manufactur mark market massiv may minimum minist mobil moder money movement much municip nation natur new newfoundland number occup occur off offer one onset ontario opportun organ outbreak overproduct part parti pass patriot payabl payment pension peopl play polici polit possibl postwar poverti power prairi predat predecessor prefer premier premis price prime product program project proper protect protection provid provinc provinci public put quebec quick r.b railway rais rang rate reaction recognit reconstitut refus regul regulatori relianc relief relief-subsid respons retali return reveal revert reward rhetor right rise role roosevelt sacrific scale second secur seem servic sever sharp sharpest shift ship shortfal small smoot smoot-hawley social socialist spend sponsor spread stabil stabl standard start state state-sponsor steadili still stock stop struggl style subsid substanti success suggest sum support suscept sweatshop switch system take taken tariff third thus time togeth took toward trade tran trans-canada tri turn twice two type u.s unemploy unfair union unit unsuccess valu vast veteran via victim vital volum wage waitress war wari wartim welcom welfar western whose winter woe work worker world wors worst would year york