What Are The Causes Of The Great Depression In Canada

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During the 1930's Canada was going through a tough time and that was because of the Great Depression. They suffered through a drought that lasted for ten years providing the cities with no crops, overproduction of goods allowing there to be not enough goods later on, unemployment causing people to go through poverty, and the stock market crash where people lost everything due to the loans they made to pay for their stocks they wanted to sell in the future. All of these events had a major contribution to the Great Depression, but the main causes of the Great Depression were unemployment, the drought, and the stock market crash (also known as the trigger incident). Unemployment was one of the main causes of the Great Depression. While many people were buying on credit, they needed to pay off their debts and as long as they had jobs they were able to…show more content…
The stock market crash was involved in the causes of the Great Depression, because it was the trigger point of it all. “In the 1920s many people wanted to put their money into stocks, so prices got higher and higher” (Lunn, Moore 235) the stock markets were very high by 1929. Although there were some people who bought the stocks, “the stock market was fuelled by borrowed cash.” (Berton 29) in other words the stock market mainly made sales from people who could not afford the stock completely and when it crashed on October 29th, 1929 “the Montreal and Toronto stock exchanges also plunged downward; 16 companies alone lost $300 million of their value” (Bolotta, Hawkes 104) also causing investors who were buying on credit, to lose their homes, businesses, cars and many of their other belongings that they put on loan to buy their shares, leaving them homeless, jobless and if having a car for transportation was a necessity, then these investors and their families had nothing at all. Therefore the stock market crash was a very significant part for the cause of the Great
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