192619271928192919301932 Bell 629016218314578 CPR 12183036252.25 Ford 10255570405.75 Imperial Oil 14223041257.40 Florida Lands 15497300 Stock Market Prices.

1926 1927 1928 1929 1930 1932

Bell 62 90 162 183 145 78

CPR 12 18 30 36 25 2.25

Ford 10 25 55 70 40 5.75

Imperial Oil

14 22 30 41 25 7.40

Florida Lands

1 5 49 73 0 0

Stock Market Prices 1926-1932

The Business Cycle: Boom and Bust

Depression Economic Analysis

• Figure 5.1.j • When was the “trough” of the business cycle of

the 1930s? Explain with reference to the trends shown in the graphs.

• Figure 5.1.i • Which province had the biggest decrease in

income? Which had the lowest? • Wheat Yields• How do the wheat yield data help to explain the

above? Hypothesize – why do you think wheat production fell so dramatically?

The Vulnerability of the Canadian Economy, 1929

• Too heavy a reliance on staple products

• About 80% of all of Canada’s staple products was sold outside the country

• the Canadian economy’s reliance on exports

• 33% of Canada’s GNP (Gross National Product) came from selling goods to other countries Nearly 40% of Canadian exports were sold to the United States

• over dependence on the United States as a market and a source of investment funds

• easy money — credit was too easily available(example – buying stock on margin)

• RESULT: overproduction of goods — from wheat to manufactured products and high levels of debt

• global economic weakness — there would be a ripple effect from the weakness in other economies

• The stock market crash of October 1929-was The first evidence of The Great Depression, but was not “The cause”

• It was a sign of fundamental economic weakness

• later — the weather — drought would devastate western Canada