Overproduction
The result of mass production
Supply outgrew demand and products sat unwanted
in warehouses
An agricultural “boom” worldwide in the late 20’s
reduced the demand for Canadian grain in Europe
Over reliance on exporting
Our “staple” products were no longer wanted overseas
Without an international market to sell our goods to,
producers went broke
Drought – “Dustbowl”
After the boom agricultural years of the 20’s, a
severe drought hit the usually fertile prairie provinces
Little rain fell from 1932-1939, farmers lost their
homes and their income
Dependence on USA
We invested in US businesses, bought their goods
through the 20’s
When their economy took a turn for the worse, ours
followed quickly
Stock market crash 1929
Speculation and buying on margin led to a decline
in investor confidence
A massive sales of shares caused stock prices to
plummet, ruining the fortunes of many
Protectionism & Tariffs
“Isolationist” policies in the post WWI world
Massive “duties” were raise on imports and exports
in an attempt to “protect” domestic economies
International trade virtually ceased
Debt from WWI
Canada’s debt from WWI soared to over 2 billion dollars