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The Great Depression in Canada

In: Historical Events

Submitted By jofee
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Lesson 8 Unit 2

10. What were the consequences of the Great Depression for Canada?

The Great Depression had a very negative effect on the economy of Canada. The stock market crashing at the beginning of the Depression sent many Canadians into immense debt and even those who sold their stocks out in time lost money. The crash of the stock market created a large problem for the economy; many banks had invested their client’s money in the stock market and when it crashed many of them were forced to close which has people panicking to get their money out of banks before they would close. This massive withdrawal of cash cause many more banks to close. Clients who did not get their money out before the bank closed also became bankrupt. With many people going bankrupt or losing large amount of money large luxury items were no longer being bought which cause economic problems for companies. The stock market crash was not the only problem, during the depression farming and agriculture took an economic downfall, the price of wheat went down lower than it had been for 300 years, European countries no longer were buying Canadian wheat. Plagues storms and infestations resulted in low yields of crops. While the depression did not cause the storms and plagues they did occur during that time and made the situation worse for farmers. Many farms went bankrupt and closed. The bankruptcy of citizens and closure of banks and farms had a very negative effect of Canada’s economy.

The Great Depression changed the way Canadians lived. Before the Great Depression Canadians large consumers, able to buy on credit the newest luxury items and live an excessive lifestyle. The Depression changed that. Suddenly the credit used before the depression was owed and people could not pay, they were forced to file for bankruptcy. With many banks closed credit was no longer available and luxury...

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