Causes of Depression & Stock Market Crash in the '20s & '30s

In the early twentieth century Canadas economy was strongly tied to farming and natural resources such as wheat, fish, minerals and pulp and paper. Most of these goods were exported to other countries, and as long as the world demand was high, Canada prospered. As the future would show, however, the economys dependence on such a narrow affirm of goods was very risky. In the late 1920s several other countries, such as Australia and Argentina, greatly increased their wheat intersection and caused a surplus on the world market. The competition operate prices lower. Then in October 1929, the stock market collapsed, and then so did many peoples and companies fortunes. Without cash, products could not be bought; this drove demand steady lower. Besides wheat, sales of fish slobberped dramatically as well. To deepen the problems caused by dropping prices and fewer sales, Canada entered a period of monstrous drought. This extended drought combined with poor farming practices resulted in large crop failures during the early 1930s; large areas of the prairies were a dust bowl. Without the income from wheat sales, the farmers were not able to hand the mortgages on their farms, nor secure equipment and machinery or other manufactured goods from east Canada.

Many lost their farms and had no other way to coif a living. This was the Great Depression, and it was not restricted to the wheat farmers or maritime fishing labor. The rest of Canada followed suit, because secondary industries that depended on the wellness of the farming/fishing industries suddenly saw the demand for their goods drop dramatically as well, or they couldnt get the supplies they inevitable to produce their products. Without wheat, flour mills and bakeries couldnt operate, trains/ships had nothing to ship. Without fish, the canning industry had nothing to package. Many people became unemployed, which meant they couldnt afford to buy anything except the bare necessities, and so almost... If you want to get a full essay, order it on our website: Orderessay

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