Unit 2: What Were the Effects of the 20's and 30's In Canada?

During the 1920’s, Canada was in the middle of an economic boom. The stock market was constantly rising, and companies were being overvalued by millions of dollars. Many women had joined the workforce in subtle yet meaningful jobs, and the men had returned to the workforce. The roaring twenties saw the massive growth in provinces across Canada. Although many industries experienced economic booms during this decade, some such as the cod fisheries in Newfoundland declined, possibly foreshadowing what would come in the 1930’s in Canada.

         

   On October 29, 1929, investors in the stock market decided that the market prices were too inflated. This would come to be known as Black Tuesday. Suddenly, the market began to deflate, leading to a massive stock market crash that would trigger the great depression of the dirty thirties. Average incomes decreased 36-72% in different provinces across Canada. Businesses in Canada lost their confidence and the loss of both domestic and foreign markets for wheat, lumber, pulp, paper, fish and minerals set off a shock wave that affected all other parts of the economy. The stock market crash, while being a huge factor in triggering the great depression, was one of many causes. High importing tariffs, bad working conditions and low wages in the workforce were some of the most important influences of the decade. To improve the economy and quality of life of Canadian citizens, many socialist movements were created such as the Progressive Party, Social Credit, the Co-operative Commonwealth Federation and even the Communist Party of Canada. These were introduced to create more equality and fairness in Canadian society. These would drastically affect Canadian life to this day. Labour unions are used as leverage to create a voice for workers, and social programs such as OSAP, welfare and Medicare can be traced to this era of Canadian society.