Chapter 6 – Prosperity and
Depression
Grade 8
Prosperity and
Depression
• The War is Over (1918)
• Things did not quickly return to
normal why?
• - Economy changes from
wartime to peacetime economy
• - Europe ’s demand for Canadian
goods dropped off causing a
slump in the economy
• - Hardest hit were the Maritimes
and the Prairies (Fish & Wheat
demand declined)
• - Price of regular goods was
going up, but wages were not,
causing slow sales
• - Unemployment went up
Decades of Change
• A Buoyant Economy for Some (1923)
• By 1923, Central Canada , BC, and The Prairies, had
begun to recover from the economic slump, and
entered a period of growth why?
• - Agriculture production increased as the demand went
up
• - Mining activity increased in these areas
• - Trade with USA increased mostly because of the
demand for pulp and paper
• - Branch Plant Factories(a business owned and
controlled by a company in another country) built to
avoid tariffs
• - Changing Technologies increased production:
• Technology Changes:1) Electricity 2) Assembly Line 3)
Electric Appliances
Decades of Change
• Stalled Economy for Others
• The Economic boom of the 1920’s did not get to
The Maritimes or Newfoundland , why?
• - A decline in shipbuilding after the war
• - Increased cost of railway freight rates
• - Lack of electricity in the area,As a result:
Secondary Industries (Pulp & Paper) slow to
develop.Primary Industries (Farm & Fisheries)
exploited (Overused)
• ** This brought about talks for Maritime Union**
Decades of Change
• Lifestyle and Technology
• The Roaring 20’s - The 1920’s were called this because
of the good times and social freedoms.New
Technologies brought on mass production The Haves
• Installment Plans – by now pay later introduced, as
people thought the good times would last for ever.
• New Luxury Items for Purchase:
• - Cars - ownership became possible
• - Telephones – ¼ families in 1920, by 1929 ¾ of families
• - Electrical Appliances
Decades of Change
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The Have Nots
The have nots – those who did not prosper
Who made up the have nots:
1) Rural Canadians - many worked but had trouble making ends
meet (Working Poor)
2) Immigrants – (Working Poor)
3) Women who were employed and lost jobs due to the return of
the soldiers
4) First Nations – Government still hoping for assimilation – where
first nations would become part of mainstream culture, and give up
their own values, beliefs, and cultures.
Assimilation pushed along by government by forcing first nation
students into schools where their personal cultures were forbidden.
Decades of Change
• Leisure/Sport/Changing Attitudes
• Leisure activities: included radio and motion
pictures (Silent movies)
• Sports: included baseball, football, boxing,
and hockey
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Changing Attitudes: Clubs introduced,
dancing, alcohol, and many new types of
fashion. All of these things were considered
controversial to many.
Decades of Change
• Causes of The Great Depression
• Black Tuesday - Oct.29, 1929 – this signified the end of
the Roaring 20’s and the beginning of The Great
Depression, as The New York Stock Exchange crashed.
• Find the definitions of the following in your text:
• Stocks –
• Shares –
• Dividend –
• Victory Bonds –
• Interest –
Decades of Change
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Roots of the Depression
Causes of the Depression, dates back to “The Roaring 20’s”
1) over spending in the 20’s
2) credit was too easy
3) over production
4) Close connection to the US Economy
5) Decrease in International Trade
6) Bank Failures
7) Unemployment Grew
Depression lasted most of the 30’s, and only recovered with
the start of World War 2.
Decades of Change
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Social Conditions
1) unemployment ruined lives
2) disadvantaged groups conditions worsened
3) Luxury items almost all but disappeared
4) People were homeless and hungry
5) No Government programs to help those in need
People in need resorted to:
• 1) begging
• 2) working in relief camps to help build roads etc.
• 3) same became hobos and rode the rails
Decades of Change
• Escape From Hard Times
• - Children found ways to entertain themselves
• - These were times of creativity and
resourcefulness
• Political Changes
• - Canadians lost faith in Political parties
• - New parties were formed as result
• - New parties brought new ideas
Decades of Change
• New Parties
• 1) Communist Party – all people share in the prosperity
equally
• 2) CCF – a coalition of farmers, labor union leaders, and
professors, they believed in private ownership and
government services
• 3) Social Credit Party – felt the Government should hand
over money to people to get the economy moving again.
• 4) National Party of Quebec – a group of former Liberals
and Conservatives who had ideas for change to the end the
Depression
• **None of these parties ways ended the depression, times
just gradually started to improve.**