IMPACT OF CREAT
DEPRESSION IN
CANADA
By: Hagr Elweshahy
TOPIC MAIN IDEA
The Great Depression
negatively impacted
the economic and
political stability in
Canada.
BACKGROUND INFORMATION
The worldwide Great Depression of the early 1930s was a
social and economic shock that left millions of Canadians
unemployed, hungry and often homeless. Beginning
on Black Tuesday, October 29, 1929, when the value of the
New York stock market fell dramatically, and ending in
1939, the Great Depression was a time when Canadians
suffered unprecedented levels of poverty due to
unemployment.
01
UNEMPLOYMENT
UNEMPLOYMENT
UNEMPLOYMENT

The economic
weaking is reflected in
the levels of
unemployment. At its
worst, unemployment
rose from 4 per cent
in 1929 to 27 percent
(meaning that more
than 1 in 4 Canadians
were unemployed) by
1933.

The economic wearing
is reflected in the levels
of unemployment. At its
worst, unemployment
rose from 4 per cent in
1929 to 27 percent
(meaning that more
than 1 in 4 Canadians
were unemployed) by
1933.

But the official
unemployment figures
ignored the high levels of
underemployment, which
doubled the numbers.
The severity if this
problem is reflected in
the number's dependent
upon relief handouts,
which reached 2 million
out of a population of 10
million.
02
TRADE
TRADE

A third of Canada's Gross National Income came
from exports. Therefore, the country was hit hard
by the collapse in international trade. As a nation
of exporters, Canada was badly hit by tariffs,
especially those imposed by the USA. The Harley
Smoot Tariff of 1930 virtually halted the export of
Canadian cattle and diary produce to the United
States. But the situation was made worse by the
fact that two of the Canadian’s main export
markets, Britain and the USA, also reduced their
imports.

The stock market crashed
because companies produced
too many goods and the prices of
the goods went down. There was
little demand and too much
supply. Soon after the crash
many businesses went bankrupt,
and tens of thousands of
Canadians lost their jobs. This
made the economy worse
UNEVEN BURDEN ON THE COUNTRY
 Several key factors aggravated the Depression’s effects in Canada. Different regions
of the country were impacted to different degrees. The country’s social-welfare
structure proved woefully inadequate. And government attempts to address
problems through policy proved misguided.
 The burden of the Depression was also unequally distributed between classes.
Although wages dropped throughout the 1930s, prices declined even faster. As a
result, the standard of living of property owners and those with jobs increased.
Farmers, young people, small businessmen and the unemployed bore the brunt of
economic hardship.
Prairie Lands
 Wheat prices were already falling and exports

Some areas were hit by severe drought, and they
experienced no rain for seven years; the area became
a dust bowl as topsoil was lost in dust storms. This
disaster was followed by a plague of grasshoppers
that devoured crops. Yields from 23.5 bushels per acre
in 1928 to 6.4 bushels per acre by 1937 and the income
of the Prairie Provinces fell from $450 million to 1928
to under 100 million by 1931.

The consequences of this was devastating. About
200,000 people left their farms in the 1930s, and in
Saskatchewan province two-thirds of the population
living on public assistance. The wheat pools
responsible for selling grain and making loans to
farmers were unable to cope. They faced mounting
debts and had to appeal to the provincial governments
for support, but the states were unable to meet their
needs.
were in decline, but Tariffs only made the
situation worse. Levels of production were really
high in 1928, but in 1929 proved halved, falling to
35 cents a bushel in 1932. The downturn left
farmers in need of relief.
 The economic problems were made worse on
the Prairies by years of drought. Plagues of
grasshoppers and hailstorms also caused huge
crop failures. Saskatchewan experienced the
lowest price for wheat in recorded history. The
province's income plummet by 90 per cent
within two years.
PRAIRIEE LANDS
INDUSTRIAL FAILURE AND DECLINE





Hard times didn’t only effect the agriculture.
sector but Industrial production dropped:
The Industrial decline was reflected in every
industry:
Rail production decline 88 percent between 1929
and 1933-34.
Washing Machine sales dropped 42 percent and
sales of stoves by 51 percent between 1929 and
1933.
Car production fell significantly from 128,496 in
1929 to just 20,606 in 1933.
Investment in new businesses dropped 79 per
cent between 1929 and 1933.
Capital expenditure on new construction,
machinery, and equipment declined by 70
percent between 1929 and 1932.
 The newsprint industry operated at
53% of its capacity.
 The mineral prices; the export value of
non ferrous metals dropped 60%
between 1929 and 1932.
 National income dropped 45% between
October 1929 and 1932, and reached its
lowest recorded level.
GDP (GROSS DOMESTIC PRODUCT)
 During the first five years of the depression,
the economy shrank by 50%. In 1929, economic
output was $105 billion, as measured by gross
domestic product (GDP). The economy began
shrinking in August 1929. By the end of the
year, one-third of all banks had failed. In 1930,
the economy shrank by another 8.5%,
according to the Bureau of Economic Analysis
(BEA). GDP growth declined 6.4% in 1931 and
12.9% in 1932. By 1933, the country had
suffered at least four years of economic
contraction It only produced $57.2 billion, half
what it produced in 1929.
 In 1930, the economy shrank
by another 8.5%, according
to the Bureau of Economic
Analysis (BEA). GDP growth
declined 6.4% in 1931 and
12.9% in 1932. By 1933, the
country had suffered at least
four years of economic
contraction It only produced
$57.2 billion, half what it
produced in 1929.
CHANGED THE POLITICAL LANDSCAPE
The Depression changed the way
Canadians thought about
the economy and the role of the state. The
prevailing opinion was that a
balanced budget, a sound dollar and
changes in the trade tariff would allow the
private marketplace to recover. This view
was shared by both the Bennet
and King governments and most
economists.
The federal Government was not very
involved in the economy at the start of the
Depression. Many economists and politicians
believed in an idea called laissezfaire (or leave it alone) economics. They
thought that the economy would work best if
the government left it alone. According to
this idea, only capitalists should guide the
economy. In the 1930s many people began to
question this idea. The unemployment rate
was very high. Poor people were getting
poorer. And the economy was not improving.
03
ELECTIONS OF
1930
KING AND THE PRESIDENTIAL ELECTTIONS

1. Mackenzie King lost in the 1930 election with 91
liberal seats and 137 Conservative seats. King
boasted at the opening of the 1930 parliament
that employment levels were high and that the
decline was nothing more than ’seasonal
slackness’.

2. With this, he stated that relief payments were
extravagant and unnecessary since there was no
sign of emergency. Mackenzie King increased
tariffs to protect industry, which served to make
the economic situation worse.

3. King was unwilling to provide help to the
provinces because he believed that they would
use the funds for purposes other than tackling
unemployment. If there was a problem, he
believed that it was the responsibility of the
provinces to deal with it.

4. Since provincial governments were unable to
cope, they passed the problem of relief on to the
municipalities, which relied on church groups
and local charities. With this, Conservative leader
R.B. Bennett was determined to make the
economy the focus of his campaign.
KING AND THE PRESIDENTIAL ELECTTIONS 1930 CONT.

Bennett stated that he would end unemployment, promising to increase public
works, take over the provinces’ responsibility for old age pensions, and raise
tariffs on goods entering Canada. The Conservatives won 48.5% of the popular
vote while the Liberals polled only 45.2%, and King’s lack of understanding
contributed to the Liberals’ electoral defeat.
04
HISTORIOGRPAHY
Historiography
 Barry Broadfoot is one of several
historians who describe this period in
Canada’s history as a lost decade.
Robert Bothwell, Ian Drummond and
John English refer to it as a decade of
“desperation, anger and broken
dreams”. He means to say that the
country lacked any innovative progress
because the government was too bust
dealing with the Great depression.