1920’s Prosperity
War Is Over
• After 1918 there were hopes that life would
return to normal in Canada, but the transition
from a war time economy to a peacetime
economy made it difficult.
• Demand for Canadian goods in Europe fell &
this impacted the Maritimes (fish) & the Prairies
(wheat) the most.
• High cost of everyday goods due to industry
producing mostly war products.
• Wages did not increase with the prices of goods
meaning many people could not buy the things
they wanted & needed.
1920’s Prosperity
Buoyant Economy for Some
• By 1923 agricultural production in the Prairies
and mining in B.C., Manitoba & Central Canada
increased due to product demand.
• Trade with the U.S. increased due to the
demand for pulp & paper.
• U.S. companies such as Ford and General
Electric (G.E.) built branch plants in Canada to
avoid tariffs (tax) on imported products.
Benefiting mostly Central Canada.
• Changing technologies such as the car, T.V.,
sewing machine, washing machine, fridge,
electric iron & others spurred economic growth.
1920’s Prosperity
Buoyant Economy for Some
• The expansion of electricity to urban areas
meant that people wanted to own products that
used electricity.
• Assembly lines increased the number of
products that could be built and kept the price
low.
• New inventions not only expand production but
also retail business.
• As the decade progressed more people were
employed meaning more people could afford
new products. The consumer society was born.
1920’s Prosperity
Stalled Economy for Others
• Atlantic Canada did not see economic growth like
Central Canada.
• In Atlantic Canada the shipbuilding industry was
declining before WW1 and was not replaced by another
industry.
• Ports of St. John & Halifax could not compete with the
modernization of the federally funded Montreal port for
shipbuilding.
• Increased freight rates on railway shipping meant that
maritime products had a high price and became less
desirable.
• Between 1920-26 the Maritimes lost 42% of
manufacturing jobs to Central Canada and the U.S.
1920’s Prosperity
Stalled Economy for Others
• Hydroelectric power did not arrive in the
Maritimes until 1931 which meant that industries
and consumers could not take advantage of new
technologies.
• Secondary industries like pulp & paper were
slower to develop due to this.
• The Maritimes relied on primary industries
such as fishing, farming, mining & forestry for
employment.
• High tariffs on fish & farm products imported to
the U.S. made them expensive and less
desirable.
1920’s Prosperity
Stalled Economy for Others
• Economic difficulties in the Maritimes led
to talks about Maritime Union of N.S., N.B.
&P.E.I.
• Te hopes were that this would give these
provinces a stronger voice in Ottawa & to
better solve regional problems.
• This threat led to the lowering of freight
rate for the Maritimes.
1920’s Prosperity
The Haves
• The 1920`s were referred to as the ``Roaring
Twenties`` due to good times &social freedoms.
• More employment & higher wages meant that
workers had money to spend on new mass
produced products.
• The instalment plan allowed consumers to
``buy now, pay later``.
• People were buying items on credit in large
numbers. They believed that the good times
were here to stay and no need to worry about
debt.
1920’s Prosperity
The Haves
• Cars were a popular credit purchase. ($1 down
& $1 per week payment plan)
• Due to this city people started to travel to the
country and country people to the cities.
• The telephone allowed for greater
communication between people and areas.
• In 1920 ¼ of families had a phone & by 1926 ¾
had one.
• New electrical appliances for the home were in
high demand and many used layaway plans to
purchase them.
1920’s Prosperity
The Have Nots
• Not everyone benefited from the 1920’s
economic boom, especially the working
poor.
• Rural Canadians with little money turned
to bartering their crops for basic needs.
• Urban working poor struggled as well,
often with out electricity or the $ to buy any
new technologies any way.
• Many African & Asian Canadians were
also among the working poor.
1920’s Prosperity
The Have Nots
• Women lost factory jobs after the war &
most educated to grade eight & expected
to be wives and mothers.
• Educated women worked as teachers,
nurses, bookkeepers or secretaries.
• Those without worked as domestic help or
clerks.
• In 1920 16.3% of undergrads were women
& by 1930 23.5% were.
• In 1929 child labor laws changed so 14
The Roots of the Great
Depression
• Can be traced back to the spending and
buying habits of the 1920’s
• Both people and manufactures were
buying with credit.
• Buying stocks with credit was also
possible
• People became greedy and did not see
the possibility of not being able to pay for
loans.
Depression Roots Continued
• Manufacturing practices of “over
production” in the hopes of future sales.
• Products were stockpiled.
• With Canada’s reliance on U.S. trade and
the slowing U.S. economy meant that
exports slowed, investors pulled out and
Canadian Branch Plants closed putting
people out of work.
• A chain reaction of events.
Depression Roots Continued
• International trade by Canada dropped by
50% by 1932.
• Jobs were lost world wide.
• Countries increased tariffs on products.
• Wheat prices dropped by half to .29cents
a bushel.
• Slow economy meant companies had to
cut jobs.
The Stock-Market Crash
• This was the event that ended the “Roaring
Twenties” & started the Great Depression.
• N.Y.’s stock market crashed on Tuesday Oct.
29, 1929. (Black Tuesday)
• Many people bought stocks in different
companies. These gave them a share in the
ownership of the company.
• Shares were sold to raise money to develop
new products & expand business.
• Stocks gave the owner a share of the
companies profits called a dividend.
The Stock-Market Crash Continued
• In Canada during WW1 people were
encouraged to buy victory bonds, which were
guaranteed certificates used to raise money for
the war. After the war they could be cashed out
for the purchase price plus interest.
• For Canadians these bonds encouraged people
to buy stocks.
• The problem was that people overlooked the
fact that a stock’s price was not guaranteed to
rise and make money for the investor. It could
go down and loose money.
The Stock-Market Crash Continued
• Before Black Tuesday share prices began
to fall and were worth less and less
money.
• Eventually by the Tuesday Oct. 24, 1929
investors flooded to the N.Y. Stock
Exchange trying to sell their stocks before
they lost even more money.
• Without the confidence of investors the
market crashed.
Definitions
Branch Plants- Business owned & controlled
by a company in another country.
Tariff- Tax placed on foreign goods imported
into a country.
Assembly Line- A row of workers and
machines where work is passed along to
produce the final product.
Definitions
Primary Industries- An industry that uses
products of nature as raw
materials.(mining,forestry,fishing,farming)
Secondary Industries- Manufacturing of
products using products from primary
industry.(Food,clothes,electronics,cars)
Installment Plan- A debt that is paid in
instalments with interest applied.
Assimilate- To become a uniform part of a
larger group. First Nations people were
Definitions
Stocks- the capital(value) of a company
divided into equal parts for sale and
purchase.
Share- One of the equal parts a companies
ownership is divided into.
Dividend- A companies profits shared with
its owners.
Victory Bonds- Money raised for the war
effort which was a safe investment.
Definitions
Interest- A fee paid for the use of someone
else’s money.