Causes of the Depression

1. 1920s (Post-War)

1.1. Standard of Living

1.1.1. - demand of wheat from Canada

1.1.1.1. demand for consumer goods (ex: cars and radios) grew. Industries developed assembly lines to help mass produced the products for less money and quicker.

1.1.1.1.1. many people could buy the products that were once considered luxuries.

1.2. Overspending

1.2.1. many people borrowed too much money.

1.2.1.1. example: Farmers bought new machinery for their farms, assuming they would receive all the money back.

1.2.1.2. Many Europeans countries couldn't afford to import Canadian wheat anymore because of the huge debt they received from the War previous.

1.2.1.2.1. On Tuesday October 29, 1949, known as Black Friday, stock prices from around the world drastically dropped and Canada was estimated to losing $1 million dollars a minute.

1.2.1.3. The demand and price for wheat drastically dropped. Farmers (30% of the population then) stopped purchasing new machinery and the demand for goods dropped quickly

1.2.1.4. Then people who manufactured these goods lost their jobs and they couldn't afford to purchase new goods.