The post-World War One period, or so-called the Golden Age, proved to be a great economic success for both the Americans and the Canadians. During the next decade, both countries experienced immense wealth, with a low unemployment rate, a higher ratio of profit vs. losses, and a basic rapid growth in the economic status. However, this short time of prosperity all came to an end in the October of 1929, when the mighty Wall Street Stock Market crashed, and burned.
In one night, companies all across the North American Continent fell into bankruptcy and debt, creating an all time low in income, and stock value. Many shareholders were left with little valuable stock and simply sold what little they have left in hopes to diminish their losses.
During this period (which lasted a decade, from 1929, to 1939), the Canadians suffered mass unemployment, 50% reduction in stock values, and national productivity diminishing to a phenomenal 43%.
The most affected, however, were the Prairie Provinces, where the main business was agricultural trade. With consumer consumption low, and cheap labor, due to the cause of the market-crash, trade with foreign countries also fell to an all time low at a reduced rate of 50%.
Unlike the American government, the Canadian government did not intervene in the original process of creating profit, therefore, was not blamed for the depression, while in the U.S. government officials were being blamed for not controlling the rapid economic rise. But, one thing in common with both countries was the fact that neither was prepared, or really thought that a market-crash such as this could ever exist, and that it could ever happen in their countries. After the Great Depression, the Canadian government changed its policy, and took control, creating minimum wages for workers, safety nets, and standard work schedules.
The Depression did improve around 1933, but continued on until 1939, with Hitler's declaration of war. With World War Two on the rise, a sudden need of war materials sprouted, thus saving the North American Economy from total oblivion.
In one night, companies all across the North American Continent fell into bankruptcy and debt, creating an all time low in income, and stock value. Many shareholders were left with little valuable stock and simply sold what little they have left in hopes to diminish their losses.
During this period (which lasted a decade, from 1929, to 1939), the Canadians suffered mass unemployment, 50% reduction in stock values, and national productivity diminishing to a phenomenal 43%.
The most affected, however, were the Prairie Provinces, where the main business was agricultural trade. With consumer consumption low, and cheap labor, due to the cause of the market-crash, trade with foreign countries also fell to an all time low at a reduced rate of 50%.
Unlike the American government, the Canadian government did not intervene in the original process of creating profit, therefore, was not blamed for the depression, while in the U.S. government officials were being blamed for not controlling the rapid economic rise. But, one thing in common with both countries was the fact that neither was prepared, or really thought that a market-crash such as this could ever exist, and that it could ever happen in their countries. After the Great Depression, the Canadian government changed its policy, and took control, creating minimum wages for workers, safety nets, and standard work schedules.
The Depression did improve around 1933, but continued on until 1939, with Hitler's declaration of war. With World War Two on the rise, a sudden need of war materials sprouted, thus saving the North American Economy from total oblivion.
~Kit Han
Sources:
Stock Market Crash, Government Canada, 2005/9/7
Stock Market Crash, Government Canada, 2005/9/7
The Great Depression of Canada, The Educationally Funkalicious History page, 2005/09/17
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