The “Roaring 20’s”
Prohibition and the Economic
Boom of the 1920’s
Women’s Christian Temperance
Union (WCTU)
• Became a national organization in 1883
• Comprised of middle class women against
drinking and seeking the vote for women
• By 1884 “dry” areas began to appear
• 1918 – National Prohibition Movement
• 1921 – Prohibition replaced with governmentcontrolled liquor sales
• Stayed in the US longer – led to “rum runners”
transporting liquor over the border
Positive Results / Negative Results
• The petty crime rate
dropped.
• Fewer arrests for
public drunkenness,
disorderly conduct,
etc.
• More money made it
home to the family
• Industrial efficiency
notably improved
(fewer sick/drunk
days)
• Widespread abuse of the
new laws (people
breaking them)
• Discontented public
• New type of criminal:
bootleggers, rum- runners
• A hugely profitable black
market in illicit liquor
• Severe crime rate
(murder, arson, assault)
went way up as criminals
fought for control of illegal
liquor sales
Overall Consumption of Alcoholic Beverages
(1910-1929)
New Opportunities
• Post-WWI:
– Canadian economy experienced a short
slump as war industries closed and returned
soldiers flooded the labour pool
– New markets opened for Canadian goods in a
recovering Europe and strong, growing USA
– New industries created jobs and Canadians
had money to spend
– Economy began a period of rapid growth
Growing Industries
Agriculture:
– European farms were
damaged in WWI and
Canadian farms supplied
much-needed food…at a
price
– 1925-28 were years of
record high wheat crops
– New mechanized
equipment (tractors,
threshers, etc.) allowed for
greater production
– Farmers had extra $ and
used it to expand their
farms and buy equipment
Growing Industries
Timber, Pulp & Paper:
– A construction boom
meant timber was in high
demand – Canada had
forests full of it
– Paper production
became Canada’s
largest industry – the US
was our largest
customer
Growing Industries
Mining:
– Manufactured goods
need raw materials,
especially metals &
ores
– Canada had huge
deposits of nickel,
zinc, lead and copper
– New mines opened
and business boomed
Growing Industries
Energy
• Cities were becoming
electrified and people had
new gadgets (appliances,
lights) in their homes –
demand for electricity
increased
• Driving meant an
increase demand for oil
• Huge amounts of $ spent
on oil/gas exploration
Foreign Investment & Trade
• After WWI, Britain ceased to be Canada’s
biggest foreign investor
• American companies were now pouring money
into Canadian business/industry
“Branch Plants” – operations set up in one
country but completely owned by companies in
another country
Rise of Consumerism
• With the economic boom came higher
wages and a desire to spend them
• People wanted a taste of the “good life”
after the hardships of the previous decade.
• New entertainments, fads and inventions
were in high demand
• Inventions such as the automobile, radio,
vacuum, washing machine, electric sewing
machine, etc. were now “must haves”
Rise of Consumerism
• A large consumer
culture was created
as people spent their
money on all the
items they now felt
they wanted or
needed.
• Businesses grew to
support these
demands
Rise of Consumerism
Thanks to Henry Ford’s “Assembly Line” idea,
automobiles had become affordable and many
families bought these new contraptions
Rise of Consumerism
• Not everyone could
afford to buy all these
new products
immediately, so
stores had “buy no,
pay later!”
arrangements so that
people could
purchase items on
credit – even stocks
on the stock market
The Triumph of Capitalism!
• The Canadian economy of the 1920’s was
about creating wealth and plenty for
everyone.
• The government stepped back and
allowed business and the free-market to
run its own affairs. (laissez-faire
capitalism)
• People were investing in the stock market
and making some profit from it.
• After the horrors of WWI, it seemed that
good times had finally arrived to stay.