What is an economic depression?
A lengthy period of economic and social hardship with low economic activity and high unemployment
Why was the Great Depression significant?
It was the worst depression in history, caused widespread suffering, led to social welfare programs, and helped cause WWII
What years did the Great Depression occur?
1929 through the 1930s
What caused the Great Depression?
Unsound banking, WWI debt, unregulated capitalism, low wages, overproduction, too much credit, buying on margin, dependence on the US economy, and US protectionism
Why did unregulated capitalism contribute to the Depression?
There were no safeguards to prevent speculation, overproduction, or banking collapse
Why was Canada hit especially hard?
Canada depended heavily on the US economy
How did US protectionism worsen the Depression?
Tariffs reduced trade and deepened the global economic collapse
What happened to the New York Stock Exchange?
It dropped about 90 percent
What happened to investors?
Many lost everything
What happened to banks?
Banks stopped lending and many went out of business
What happened to loans?
Massive loan defaults occurred
How much did the US economy shrink?
About 50 percent
What happened to Canada’s economy?
It collapsed due to dependence on the US
What was the human cost of the Depression?
Hunger homelessness fear shame and hopelessness
What percent of Canadians were unemployed?
About 30 percent
What percent were underemployed?
About 30 percent
What happened to housing?
Many lost homes and became homeless
Why was suffering so severe?
There were virtually no welfare programs
Who was scapegoated during the Depression?
Minorities and women
What phrase summed up the era?
No money no job no future
What was the Dust Bowl?
The worst environmental disaster before climate change
What caused the Dust Bowl?
Overproduction soil depletion drought record heat and sandstorms
What happened to farmland?
Millions of acres became useless
How did people describe the Dust Bowl?
Like the end of the world