The Great Depression
Canada was hard hit by the Great Depression. When the American economy began to collapse in the late 1920s the close economic links and the central banking system meant that the malaise quickly spread across the border. The U.S. raised tariffs in 1930 and Canada retaliated, raising rates against the U.S. while forging closer ties to the Empire. Nevertheless foreign trade fell and the wheat economy of the prairies were especially hard hit.
By 1933, 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. Population growth contracted markedly as immigration slowed, and birth rates fell as people postponed marriage and family life until they were more secure. Crime rates increased, and a new class of unemployed vagrants appeared.
Like the United States, Canada remained in depression far longer, not passing 1929 levels until 1939, with the outbreak of the Second World War. There was no national recovery program similar to Franklin D. Roosevelt's New Deal.
Read more about this topic: Economic History Of Canada
Famous quotes containing the word depression:
“The term clinical depression finds its way into too many conversations these days. One has a sense that a catastrophe has occurred in the psychic landscape.”
—Leonard Cohen (b. 1934)