Economics Assignment: Analysis of the Great Depression in Canada

This economics assignment examines the Great Depression's impact on Canada, focusing on its economic and social consequences. The assignment analyzes the causes of the depression, including high tariffs, credit expansion, and overproduction, and their effects on the Canadian economy. It explores the government's responses, such as interventions and policies, and the resulting unemployment, social welfare changes, and the role of international trade. The analysis covers key factors like the stock market crash, banking panics, and the gold standard, along with the impact on various sectors and the slow recovery process. The paper references key academic sources to support its claims, providing a comprehensive overview of this critical period in Canadian history. It highlights the widespread losses of jobs and savings and the transformation of the country by triggering the birth of social welfare.

Running head: ECONOMICS ASSIGNMENT
Economics assignment
Name of the student
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ECONOMICS ASSIGNMENT
Thesis statement: The Great Depression had been one of the severe worldwide economic
depression which took place during 1930 and have affected Canada severely.
The worldwide Great Depression was a social and economic shock that have left
millions of Canadians unemployed, homeless and hungry. Some of the countries are known
to be affected and a huge number of people were known to be unemployed. By the year 1930,
more than thirty percent of the labour force was known to be out of work. Reduction of
investment will be unable to invest in the new ventures. Widespread losses of jobs and
savings will be transforming the country by triggering the birth of the social welfare. The
worldwide Great Depression in the 1930 was a kind of social and economic shock that left
large number of Canadians unemployed, homeless and hungry.
The effects of depression have increased by an uneven impact by the structure of the
social welfare. The nationwide urban employment was nineteen percent and the rate of
unemployment in Toronto was 17%.
The main causes of the depression are:
High rate of tariffs: in order to prop up the products of Canada, the national
government raised tariffs. The protectionist strategies backfired when the other countries will
be imposing the tariffs.
Large amount of credit: Canadians are known to buy a large amount of lease and
credits which includes stocks. For this reason when the stock market crashed, Canadians were
known to be in debt.
Over production and expansion: the companies of Canada known to expand their
industries in order to meet their demand of war. When the European industry known to have

ECONOMICS ASSIGNMENT
recovered, the agriculture and industry of Canada were known to be overproducing causing
the price to fall. The United States was one of the Canada’s largest buyers.
Reaction of the government
At the time of depression, the municipal governments were already in debt after the
expansion of infrastructure.
The Prairie Provinces and the Western Canada had been badly hit. At the time of
depression, there had been arise in the working class militancy organized by the communist
Party. The communists then started with numerous strikes and protests that were mostly led
by the communists. The crash in the Stock Market in New York had led people to hoard their
money when the consumption started to fall. After that time the American economy also
started to contract. Canada was known to be badly hurt because of the reliance on particular
base commodities when the price fell by fifty percent. This is because of the international
trade. Canada also known to have a high degree of exposure to the international economy.
During the time of depression it have been found out that there had been a rise in the working
class militancy. The depression had known to create critical deficits of balance of payments.
The British market is also known to play a vital role in the Canadian and Australian
economies.
The Canadian recovery from the Great Depression have known to proceed slowly. In
the case of United States the productivity is known to recover quickly when the labour force
will be remaining depressed. In case of Canada the employment opportunities recovered,
however the productivity remained well below trend. Widespread losses of jobs and savings
will be transforming the country by triggering the birth of the social welfare. The worldwide
Great Depression in the 1930 was a kind of social and economic shock that left large number
of Canadians unemployed, homeless and hungry.

ECONOMICS ASSIGNMENT
Intervention of the government
High rate of tariff: for propping up the products of the Canada, the nat5ionakl
government have known to raise the rate of tariffs. The farmers in Canada, had frequently
bought seeds and machinery by using the credit. The economy of Canada had also started to
shift from primary industry to manufacturing. Raw materials exports plunged and
employment prices and profits fell in the every sector. At the time of depression, the
government were already in debt after an expansion of the infrastructures. The British market
is also known to have played an important role for helping Australia and Canada. The
Bennett Government known to have defeated Mackenzie King in 1930. One of the reasons
for which China had been affected due to great depression is that it had known to print a lot
of money than the United States of America. The worldwide Great Depression in the 1930.
The great depression therefore can be stated as one of the worst economic downturn in the
history of the industrialized world. The crash of the stock market in the year 1929, put many
countries into depression. The depression had also been result of a number of serious
weakness in the economy. Therefore, it can be said that the economic downturn know to
begin in the year 1929 and lasted till the end of the year 1939. Four factors played roles of
varying importance such as the stock ma4rket crash in 1929, the Smoot Hawley Tariff Act,
gold standard requiring the foreign central banks to raise interest rates to counteract the
imbalances of trade with the United States. Banking panics in the early 1930s have also
resulted the banks to fail which decreases the pool of money available for loans.

ECONOMICS ASSIGNMENT
Reference list
Anoushka, I., & Kenney, C. (2018). Canada during the Great Depression.
Breau, S., Toy, B., Brown, M., Macdonald, R., & Coomes, O. T. (2017). In the Footsteps of
Mackintosh and Innis: Tracking Canada’s Economic Centre of Gravity since the
Great Depression. Canadian Public Policy, (aop), 1-12.
Innis, H. A. (1999). The fur trade in Canada: An introduction to Canadian economic history.
University of Toronto Press.