what part of canada was hardest hit by the depression

The depression originated in the United States, and can be dated to the the Stock Market crash of October 1929. Given the close economic links with the much larger neighbor, the collapse quickly affected Canada. The Prairies and Maritimes were hardest hit, along with mining areas and heavy industry areas of Ontario and Quebec.

Full Answer

Which country was hit hardest by the Great Depression?

But one country arguably suffered more than any other: Canada. By the time its economy reached bottom in 1932, Canada had suffered a staggering decline of 34.8 percent in per-capita gross domestic product. No other developed nation was as hard-hit.

How bad was Canada's economy hit by the Great Depression?

March 26 (Bloomberg) -- The Great Depression devastated many economies. But one country arguably suffered more than any other: Canada. By the time its economy reached bottom in 1932, Canada had suffered a staggering decline of 34.8 percent in per-capita gross domestic product. No other developed nation was as hard-hit.

What happened to Alberta after the Great Depression?

The Social Credit party, now firmly on the right, governed Alberta until 1968 under Manning. The Canadian recovery from the Great Depression proceeded slowly. Economists Pedro Amaral and James MacGee find that the Canadian recovery has important differences with the United States.

Why was Canada so poor during the Dirty Thirties?

Few countries were affected as severely as Canada during what became known as the "Dirty Thirties," due to Canada's heavy dependence on raw material and farm exports, combined with a crippling Prairies drought known as the Dust Bowl.

What places were hit hardest by the Great Depression?

The timing and severity of the Great Depression varied substantially across countries. The Depression was particularly long and severe in the United States and Europe; it was milder in Japan and much of Latin America.

Who was hardest hit by the Great Depression?

The country's most vulnerable populations, such as children, the elderly, and those subject to discrimination, like African Americans, were the hardest hit. Most white Americans felt entitled to what few jobs were available, leaving African Americans unable to find work, even in the jobs once considered their domain.

How was Western Canada affected by the Great Depression?

While all of Canada suffered during the Great Depression, Western Canadians had been hit especially hard because of drought and low crop prices, and so had arguably suffered more than the rest of Canada. Many had faced severe economic difficulties and had experienced unemployment.

Was Canada affected by the Great Depression?

The Great Depression took place in Canada and around the world in the 1930s. The term “Depression” is used to describe an economic decline that lasts for a long time. During the worst period of the Depression about 30 percent of Canadians were unemployed.

Which countries were not affected by the Great Depression?

In most countries, such as Britain, France, Canada, the Netherlands, and the Nordic countries, the depression was less severe and shorter, often ending by 1931. Those countries did not have the banking and financial crises that the United States did, and most left the gold standard earlier than the United States did.

Why was Canada hit so hard by the Great Depression?

Few countries were affected as severely as Canada during what became known as the "Dirty Thirties," due to Canada's heavy dependence on raw material and farm exports, combined with a crippling Prairies drought known as the Dust Bowl.

When did the depression end in Canada?

1939Canada, with its resource-based economy, suffered immensely. The pain was amplified by a drought that plagued Western Canada during the dirty thirties. The depression ended in 1939 with the advent of the Second World War, which kick-started the world's economies.

Did Canada have a Dust Bowl?

The dustbowl of the 1930s might have ended over eighty years ago, but many western Canadians still watch for its return.

What was the Great Depression for kids?

During the 1930s much of the world faced harsh economic conditions. Many people were out of work, hungry, or homeless. This period is called the Great Depression. It started in the United States, but it quickly spread throughout the world.

How did the Great Depression affect people?

As stocks continued to fall during the early 1930s, businesses failed, and unemployment rose dramatically. By 1932, one of every four workers was unemployed. Banks failed and life savings were lost, leaving many Americans destitute. With no job and no savings, thousands of Americans lost their homes.

Who was involved in the Great Depression?

120The Great Depression / Duration (months)

What president put us in the Great Depression?

Before serving as America's 31st President from 1929 to 1933, Herbert Hoover had achieved international success as a mining engineer and worldwide gratitude as “The Great Humanitarian” who fed war-torn Europe during and after World War I.

How did Canada get out of the depression?

From 1939, an increased demand in Europe for materials, and increased spending by the Canadian government created a strong boost for the economy. Unemployed men enlisted in the military. By 1939, Canada was in the first prosperity period in the business cycle in a decade. This coincided with the recovery in the American economy, which created a better market for exports and a new inflow of much needed capital.

Why was Canada hurt?

Canada was hurt badly because of its reliance on base commodities, whose prices fell by over 50%, and because of the importance of international trade. In the 1920s about 25% of the Canadian Gross National Product was derived from exports.

How did Canada recover from the Great Depression?

The Canadian recovery from the Great Depression proceeded slowly. Economists Pedro Amaral and James MacGee find that the Canadian recovery has important differences with the United States. In the U.S. productivity recovered quickly while the labour force remained depressed throughout the decade. In Canada employment quickly recovered but productivity remained well below trend. Amaral and MacGee suggest that this decline is due to the sustained reduction in international trade during the 1930s.

How did the stock market crash affect Canada?

Given the close economic links between the two countries, the collapse quickly affected Canada. Added to the woes of the prairies were those of Ontario and Quebec, whose manufacturing industries were now victims of overproduction. Massive lay-offs occurred and other companies collapsed into bankruptcy. This collapse was not as sharp as that in the United States, but was the second sharpest collapse in the world.

What was the effect of the Depression on the population in 1930?

By 1930, 30% of the labour force was out of work , and one fifth of the population became dependent on government assistance. Wages fell, as did prices. Gross National Expenditure had declined 42% from the 1929 levels. In some areas, the decline was far worse. In the rural areas of the prairies, two thirds of the population were on relief.

Why did Canada benefit from the British trade protection system?

It helped Canada avoid external default on their public debt during the Great Depression. Canada had a high degree of exposure to the international economy, which left Canada susceptible to any international economic downturn. The onset of the depression created critical balance of payment deficits, and it was largely the extension of imperial protection by Britain that gave Canada the opportunity to increase their exports to the British market. By 1938 Britain was importing more than twice the 1929 volume of products from Australia, while the value of products shipped from Canada more than doubled, despite the dramatic drop in prices. Thus, the British market played a vital role in helping Canada and Australia stabilize their balance of payments in the immensely difficult economic conditions of the 1930s.

Why did Canada's economy suffer?

Canada was hurt badly because of its reliance on base commodities, whose prices fell by over 50%, and because of the importance of international trade. In the 1920s about 25% of the Canadian Gross National Product was derived from exports. The first reaction of the U.S. was to raise tariffs via the Smoot-Hawley Tariff Act, passed into law June 17, 1930. This hurt the Canadian economy more than most other countries in the world, and Canada retaliated by raising its own rates on American exports and by switching business to the Empire.

Which country suffered the most during the Great Depression?

March 26 (Bloomberg) -- The Great Depression devastated many economies. But one country arguably suffered more than any other: Canada. By the time its economy reached bottom in 1932, Canada had suffered a staggering decline of 34.8 percent in per-capita gross domestic product.

What was the impact of the Great Depression on the economy?

By the time its economy reached bottom in 1932, Canada had suffered a staggering decline of 34.8 percent in per-capita gross domestic product. No other developed nation was as hard-hit.

Was Canada a developed country?

No other developed nation was as hard-hit. Canada was, and still is, a country dependent on trade. In the 1920s, commodities -- such as wheat -- and lumber products, including newsprint, were particularly important.

Pre-Depression

In the years between 1900 and 1929, Canada had the world's fastest growing economy, with only a sharp but brief recession during World War I. The 1920s had been an especially successful period of growth, with living standards improving markedly.

World trade

The depression originated in the United States, and can be dated to the the Stock Market crash of October 1929. Given the close economic links with the much larger neighbor, the collapse quickly affected Canada. The Prairies and Maritimes were hardest hit, along with mining areas and heavy industry areas of Ontario and Quebec.

Economic hardship

The contraction period of the depression in Canada lasted from May 1929 until 1933. After that there was a steady, slow upswing until 1939, when improvement came rapidly.

Social impact

James Skitt Matthews's "The `Jungles' of 1931" was the first history of Canadian life during the Great Depression. His short essay, published in Early Vancouver: Narratives of Pioneers in 1932, told the story of transient homeless men, who in this case lived in a makeshift settlement on Vancouver's waterfront.

Government reaction

At the start of the Depression, the provincial and municipal governments were already in debt after an expansion of infrastructure and education during the 1920s. It thus fell to the federal government to try to improve the economy. When the Depression began William Lyon Mackenzie King was Prime Minister.

Developments in Prairies and BC

Back to the farm schemes were common during the depression years. Some 200,000 homeless unemployed men were placed on prairie farms for the winter months under a relief measure known as the farm employment plans.

Recovery

While the Canadian economy had slowly been recovering after 1933, it took the outbreak of World War II in 1939 to pull Canada out of the depression. Newfoundland recovered rapidly as well, with American money pouring in to build bases.

Overview

Economic results

World trade

Government reaction

Recovery

See also

Further reading

External links