Canada in the Great Depression

Factors Contributing to the Great Depression in Canada

• Canada's heavy reliance on international trade, particularly with the United States, made it vulnerable to the global economic downturn.
• Economic dependence on a few primary products, such as wheat, and a lack of diversification in industries contributed to Canada's susceptibility to the Great Depression.

Canadian Government Response to the Great Depression

• The government responded to the crisis by severely limiting immigration, reducing the number of immigrants from 169,000 in 1929 to just 10,000 in 1932.

Impact on Labor Force

• Unemployment soared, with an estimated 1 in 5 Canadians out of work, leading to widespread poverty and despair.
• Many workers who retained their jobs suffered significant wage reductions and longer working hours.

Gross National Expenditure

• Gross National Expenditure (GNE) plunged by 40% from 1929 to 1933, indicating a severe decline in economic activity.

Rural Areas of the Prairies

• The prairie provinces were severely affected, with drought, dust storms, and poor agricultural practices exacerbating the economic woes, leading to widespread poverty and migration from rural areas.

Causes of the Great Depression in Canada

• Overproduction, particularly in the agricultural sector, led to a glut of goods, which contributed to the economic downturn.
• Protectionism, such as the passage of the Smoot-Hawley Tariff in the United States, led to retaliatory measures from other countries, resulting in a sharp decline in international trade.

Impact of the Dust Bowl

• The Dust Bowl, a period of severe dust storms and drought, had a devastating impact on Canadian agriculture, leading to crop failures and livestock deaths, further exacerbating the economic crisis.