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         Crash Of 1929 & The Depression Economics:     more books (18)
  1. The Great Crash 1929 by John Kenneth Galbraith, 1997-04-30
  2. The Stock Market Crash of 1929: Dawn of the Great Depression (American Disasters) by Mary Gow, 2003-09
  3. The Stock Market Crash of 1929 (Landmark Events in American History) by Scott Ingram, 2004-07
  4. World History Series - Crash of 1929 (World History Series) by Nathan Aaseng, 2001-05-01
  5. The Crash of 1929 (World Disasters Series) by Ronald Migneco, 1989-09
  6. The Crash of 1929 (At Issue in History)
  7. Rainbow's End: The Crash of 1929 (Pivotal Moments in American History) by Maury Klein, 2001-10-25
  8. The Day the Bubble Burst: A Social History of the Wall Street Crash of 1929 by Gordon Thomas, Max Morgan-Witts, 1982-10
  9. The Year of the Great Crash, 1929 by William K. Klingaman, 1991-05
  10. The Warning: The Coming Great Crash in the Stock Market by Joseph E. Granville, 1985-09
  11. 1929 stock market crash (History in the headlines) by Douglas M Rife, 2000
  12. Role of Accounting in the Stock Market Crash of 1929 (Research Monograph (Georgia State University College of Business Administration)) by Gadis J. Dillon, Gradis J. Dillon, 1983-11
  13. The Crash and Its Aftermath: A History of Securities Markets in the United States, 1929-1933 (Contributions in Economics and Economic History) by Barrie A. Wigmore, 1985-12-23
  14. The Causes of the 1929 Stock Market Crash: A Speculative Orgy or a New Era? (Contributions in Economics and Economic History) by Harold Bierman, 1998-04-30

1. Sliding Into The Great Depression
The Great depression in Outline. The Great crash. Even a Panic The stock market crash of 1929 greatly added to economic Associate Professor of economics Brad DeLong, 601 Evans
http://econ161.berkeley.edu/TCEH/Slouch_Crash14.html
20 Century
Created 2/3/1997
Go to Brad DeLong's Home Page
Slouching Towards Utopia?: The Economic History of the Twentieth Century
-XIV. The Great Crash and the Great Slump-
J. Bradford DeLong
University of California at Berkeley and NBER February 1997
  • The Great Depression in Outline
  • The Great Crash
  • Even a Panic Is Not All Together a Bad Thing
  • Debt-Deflation
  • Golden Fetters
  • The Persistence of the Great Depression
The Great Depression in Outline It is straightforward to narrate the slide of the world into the Great Depression. The 1920's saw a stock market boom in the U.S. as the result of general optimism: businessmen and economists believed that the newly-born Federal Reserve would stabilize the economy, and that the pace of technological progress guaranteed rapidly rising living standards and expanding markets. The U.S. Federal Reserve's attempts in 1928 and 1929 to raise interest rates to discourage stock speculation brought on an initial recession. Caught by surprise, firms cut back their own plans for further purchase of producer durable goods; firms making producer durables cut back production; out-of-work consumers and those who feared they might soon be out of work cut back purchases of consumer durables, and firms making consumer durables faced falling demand as well. Falls in pricesdeflationduring the Depression set in motion contractions in production which riggered additional falls in prices. With prices falling at ten percent per year, investors could calculate that they would earn less profit investing now than delaying investment until next year when their dollars would stretch ten percent further. Banking panics and the collapse of the world monetary system cast doubt on everyone's credit, and reinforced the belief that now was a time to watch and wait. The slide into the Depression, with increasing unemployment, falling production, and falling prices, continued throughout Herbert Hoover's Presidential term.

2. The World Depression
been prior to the crash; between 1929 and 1932 the Dow an economic depression was by no means a novelty Of course, unconverted advocates of the traditional economics might argue
http://mars.acnet.wnec.edu/~grempel/courses/wc2/lectures/depression.html
The Great Depression
It was appropriate that the terrible economic slump of the 1930s started in the United States, to which Europe seemed to have surrendered economic leadership during the Great War and on which she had been dependent ever since.
Stock Market Crash
The stock market crash that began on a black Friday in October 1929 and deepened in the ensuing months had immediate repercussion in Europe. Indeed, even before this, the superheated boom in stock prices that marked the bull market of 1928 siphoned money from Europe. The pricking of the bubble sent shock waves throughout the world.
Large exports of American capital had helped sustain Europe, besides providing an outlet for American surpluses of capital, during the 1920s. Investment in European bonds now contracted sharply and swiftly, as banks that were "caught short" with too many of their assets invested in securities desperately tried to raise money. By June 1930, the price of securities on Wall Street was about 20 percent, on average, of what it had been prior to the crash; between 1929 and 1932 the Dow-Jones average of industrial stock prices fell from a high of 381 to a low of 41!
The American market for European imports also dropped sharply as the entire American economy went into shock; and, to compound trouble, congress insisted on passing a high tariff law in 1930, against the advice of almost all economists. Effective operation of the international economy required that the United States import goods to allow foreign governments to pay for American loans. Moreover, the raising of tariffs set off a chain reaction as every government tried to protect itself against an adverse trade balance leading to currency deterioration. The result was a drying up of world trade that further fueled the economic downturn. The Americans, additionally, continued to insist upon repayment of war debts, until finally in 1931 a general moratorium was declared. Well might Europeans complain of American blindness, but these events only exposed Europe's vulnerability.

3. Great Depression, The_Crash_of_'29
Great depression chronology, The crash of 1929 DESCENT INTO THE DEPTHS (1929) The Great depression crash Of '29 This was a "New Era" in economics. An "unlimited" supply of purchasing power
http://www.futurecasts.com/Depression_descent-'29.html
DESCENT INTO THE DEPTHS (1929): The Great Depression Crash Of '29 FUTURECASTS online magazine
www.futurecasts.com
Vol. 3, No. 3, 3/1/01. Homepage Summaries of Great Depression Controversies and Facts The Great Deception Great Depression Chronologies II.
Rebound from
Crash of '29 III.
Collapse of agriculture
IV.
Debate begins.
V.
Collapse of international finance
VI.
Collapse of WW I financial obligations
VII.
Collapse of governments
(The vast majority of the following was taken from articles published in contemporary issues of the N.Y. Times.) NOTE: I suggest the following, very conservative, rules of thumb to assist in making comparisons with today's conditions.
  • To compensate for the impact of inflation on prices, multiply all prices by 10.
  • To compensate for the impact of inflation, plus the doubling of our population, plus the quadrupling of our economy per capita, multiply financial statistics by 80 when evaluating the impact of events on economic and financial markets.
This may look strange when applied to commodity and consumer prices, but actually highlights the tremendous productivity advances of the last 70 years.

4. America's Great Depression - Links
Links to Great depression resources on the web A study of the economics of the Great depression by J History and analysis of the stock market crash in 1929 and the Great depression by Tracy
http://www.amatecon.com/gdlinks.html
This page has moved. Click here to go to new location or wait to be automatically transferred.

5. Famous First Bubbles?: Stock Market Crash 1929
On October 28, 1929 the SmoothHawley tariff was enacted. as a major cause of thestock market crash and subsequent economic depression, the decision on
http://www.few.eur.nl/few/people/smant/m-economics/crash1929.htm
Rotterdam School of Economics
Personal Homepage
laatste wijziging: 3-6-2003 BUBBLES
HOME
FAMOUS FIRST BUBBLES?
THE STOCK MARKET CRASH OF 1929
After World War I the United States experienced an economic boom based on new technologies in products, production processes and firm management (e.g. General Motors and Ford in automobiles, RCA in electrical appliances). The boom was facilitated by the increased use of installment credit. In 1927 a short recession ended and industrial production jumped 25% until 1929. The US stock market boomed together with the economy and peaked in September 1929. On September 3 the index reached 381 compared to 1926=100. The stock market crashed in October 1929 (with frantic selling on Black Thurday October 24, Black Monday October 28, Black Tuesday October 29) and stock prices fell to 145 in November (-62%). In June 1932 stock prices reached their low at 34 (-91%). The usual and familiar accusations were made and have since been repeated. Speculators were 'evidently' responsible for driving stock prices away from their fundamental value, causing a bubble in the market. Speculators were aided by 'easy credit' from banks and stock-market brokers. Not just the stock market crash was blamed on speculators, but, even more, speculators and the stock market were blamed for the entire Great Depression.
Fundamentals
The fundamental value of stocks is the discounted present value of expected future dividends. Due to dividend smoothing and other considerations dividend payments usually lag earnings of firms. It is not surprising for example that during 1929 share prices of utility companies rose strongly, although most of these companies had not paid any dividends. Utility companies were seen to benefit from the expanding sale of electrical appliances and used their earnings to increase investment rather than distribute as dividends. RCA also did not pay dividends.

6. Unemployment Relief Distribution In The Bay Area During The Depression
Unemployment Relief Distribution in the Bay Area During the depression. Charmaine Go, University of CaliforniaBerkeley. The 1920s will always be remembered as a decade filled with growth, energy, and prosperity. Street.(2) The 1929 stock market crash itself did not bring about the depression. However, "it significantly accelerated for Research in Social economics from1932 to 1934, it is
http://www.eh.net/Clio/Publications/unemployment.htm
Unemployment Relief Distribution in the Bay Area During the Depression
Charmaine Go, University of California-Berkeley The 1920s will always be remembered as a decade filled with growth, energy, and prosperity. Families surrounded themselves with modern durable goods such as radios, appliances, and automobiles which made life easier and more convenient. However, a few years later, many of the same Americans found themselves in the opposite position. Instead of spending disposable income on consumer durable goods, families found themselves without enough money to pay for daily necessities such as food and shelter. During the Depression, the 1920s aura of endless opportunity and wealth quickly dissipated as feelings of uselessness and shame overtook American society. Unemployment grew to an all time high in 1933 and for the first time in American history, the federal government began to expand its role as caretaker of society as it offered relief and aid to those without jobs. As unemployment became a mass phenomenon and relief demand increased, it is necessary to question whether or not the local city welfare systems utilized the best distribution method for allocating scarce relief resources. More specifically, the Bay Area used three different methods of food relief allocation and in light of research it can be concluded that San Francisco county's commissary system was the most effective method for relief allocation. The intent of this paper is multifaceted. Section one discusses the key highlights of the Depression so that Bay Area statistics can be placed in a frame of reference. Section two looks at the unemployment and relief situation in the Bay Area. It examines the general statistics of unemployment in San Francisco, Oakland, and Berkeley as well as describes the providers and recipients of relief in the Bay Area. Finally, Section three examines the different relief distribution methods used by agencies in the Bay Area and argues that San Francisco's commissary system was more efficient than Berkeley's cash system or Alameda's grocery-order system.

7. Did The New Deal End The Depression Or Simply Make It Worse?
This is an American West history course, focusing on American Western Studies. The United States in the Great depression. The crash of 1929. Timelines of the Great depression LaisszFaire economics and the Invisible Hand of the Market. The New Deal's War
http://www.colorado.edu/AmStudies/lewis/2010/newdeal.htm
Question for Discussion: Did the New Deal help
end the Depression or make it worse? Reading: Hymowitz, pp. 303-311; Hoffman, pp. 228-244;
Gerster, pp. 160-164; Roosevelt "First Inaugural
Address" (web)
Reaction Paper topic: How would General Wesley Clark
respond to Kenneth Adelman 's argument that we need
to go to war with Iraq right now? (Due Oct. 28)
The United States in the Great Depression Roosevelt and the New Deal Government vs. the Market

8. America's Great Depression - Links
Century, XIV The Great crash and the Great Slump, A study of the economics of theGreat depression by J The 1929 Stock Market crash, History and analysis
http://www.amatecon.com/gd/gdlinks.html
Go to:
Main Page

An Overview

Timeline

Other Depressions
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Contact Me:
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This page was last updated on July 6, 2002
Links Web site Description The Great Depression A decidedly liberal/Keynesian look at the Great Depression by the author of the Liberalism Resurgent web page The Great Depression in the United States From A Neoclassical Perspective Article by Harold L. Cole and Lee E. Ohanian, appearing in the Winter 1999 (Vol. 23 No. 1) issue of the Federal Reserve Bank of Minneapolis Quarterly Review , an academic journal that primarily presents economic research aimed at improving policymaking by the Federal Reserve System and other governmental authorities. Black Thursday: October 24, 1929 A neat page that shows newspaper headlines leading up to the Stock Market crash Great Depression Article from the online version of the Encyclopedia Britannica The Great Depression Part of the An Outline of American History website Great Myths of the Great Depression An short essay from the August '98 issue of The Freeman that takes a look at the Great Depression from a hardcore free market perspective Slouching Towards Utopia?: The Economic History of the Twentieth Century, XIV - The Great Crash and the Great Slump

9. Urban Survival The Economy Of The 1930 S Is Here Again.
Urban Survival explores longwave economics and how we are repeating the samedebt buildup that lead to the crash and depression in 1929 and the 30 s.
http://www.urbansurvival.com/
Replaying 1929? CLICK HERE IF YOU DON'T HAVE JAVASCRIPT ON Due to overproduction, the result of mass production, the automobile, and elimination of trade barriers which eliminated pricing power, plus unsustainable debt, the U.S. suffered its first Great Depression after the 1929 Crash. It had all been forecast by Russian economist Nicolas Kondratieff in 1926 following the Weimar hyper-inflation. Since 1996, as a master's dissertation run amok, this site has been tracking how contemporary events are repeating the same processes. Specifically: "The Government is in the banking business as never before. Against its will it has been made the backer of horse thieves and card sharps, bootlegger's smugglers, speculators, and swindlers in all parts of the world. Through the Fed the riffraff of every country is operating on the public credit of the United States Government. - Rep. Louis McFadden, in the Congressional Record, 1934 Globalization has eliminated pricing power, while aided and abetted by the Fed has spawned a huge Debtberg and coupled with falling demand due to market saturation, threatens to make "tax slaves" of all generations, including us

10. Stock Market Crash, 1929
crash 1929 John Kenneth Galbraith Business economics depressions 1929 UnitedStates Stock Market crash, 1929 Great depression, 19291939 Economic
http://topics.practical.org/browse/Stock_Market_Crash,_1929
topics.practical.org
Stock Market Crash, 1929
The Great Crash 1929 John Kenneth Galbraith
Depressions
United States ... History - United States/General

11. Anti Essays : Free Essays On Great Crash Of 1929 Essays
Essays Business economics Free Essays on Great crash of 1929 Essay Free Essaysand Free Term Papers from Anti Essays The economic depression that fell
http://www.antiessays.com/essay.php?eid=1574

12. Foundation For Teaching Economics | The Great Depression
Opinions and Evidence The stock market crash of 1929 was more The depression itselfresulted from disruptions to international trade and faulty government
http://www.fte.org/teachers/lessons/efiah/histles9gredep.htm
The Great Depression and the New Deal
Page Summary
The Great Depression and the New Deal Opinions and Evidence - The stock market crash of 1929 was more a symptom than a cause of the Great Depression. The Depression itself resulted from disruptions to international trade and faulty government economic policies before and after the downturn came. Curiously, even though government policies had much to do with both bringing on the Depression and making it more severe, the economic crises of the early 1930s became grounds for greatly expanding the role of the government in American economic life.
Outline
  • The U.S. was prosperous during the 1920s, but the world economy faced problems
  • 13. Depression
    3. The Great crash 1929, The Great crash 1929 from Mariner An Oral History of theGreat depression from New here for a detailed analysis of the economics of one
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    Price: Customer Review: This very moving book teaches more lessons than I can include in one review. By now most readers probably already know the basic theme - it's the story of a number of representatives of the generation that lived through the depression, fought World War II, and built post-war America. Many of the... more info Customer Rating: Click here for more information Buy from: United Kingdom Encyclopedia of the Great Depression from MacMillan Library Reference Price: Click here for more information Buy from: United Kingdom Franklin Delano Roosevelt : (The American Presidents Series) from Times Books Price: Customer Review: Two points: Where was FDR when Poland, then Britain were on their knees and being devastated? The second point, Poland and her fate were minimized in what was an altogether too short a book to deal with such a significant figure, and the impact that he had upon our world. The United States and... more info Customer Rating: Click here for more information Buy from: United Kingdom Great Fortune: The Epic of Rockefeller Center from Viking Press Price: Customer Review: The story of Rockefeller Center is truly epic and in one way a history of New York in the twentieth century. A true behind the scenes look at the story of a complex and a city. The one drawback was the entire bankruptcy of the center was reduced to one paragraph in the Epilogue. It alone is worthy...

    14. Bernanke, Ben S. 1983. Non-monetary Effects Of The Financial
    Galbraith, JK 1954. The Great crash of 1929. Monetary Factors in the Great depression, Journal of Monetary economics March,l9 145169. , 1988.
    http://papers.nber.org/papers/w6015.reftxt

    15. The Crash Of 1929
    market, there followed a depression. Economists used a yardstick from the Jazz Ageto evaluate this correction ; the yardstick was the crash of October 1929.
    http://www.btinternet.com/~dreklind/thecrash.htm
    The Crash of 1929
    On October 19 1987, the Dow-Jones industrial average suffered a major devaluation. The Dow lost over 500 points. Stock trading markets worldwide were all suffering similar declines. At the time, there was a lot of concern over what this meant to the overall economy of the world. The reason for this concern comes from the fact that the last time there was a large devaluation in the stock market, there followed a depression. Economists used a yardstick from the Jazz Age to evaluate this 'correction'; the yardstick was the crash of October 1929. The crash of 1929 continues to be a fascinating example of panic in high finance and is still a staple of Economics 101. This event involved all people, big and small, rich and poor, young and old. Everyone. Depressions, we are told, are cyclical in the nature of economics. In this era, we have successfully evaded depressions with the aid of computers, government regulation, and because we actually learned from history. The subject of this crash in 1929 has been studied and discussed many times over the years, by many economic authors. Most notable, in my opinion, would be John Galbraith. His book, "The Great Crash 1929", I heartily recommend if you are interested in the details of the crash and events leading up to it. It is a warning to us that our economic world will not always necessarily be safe. In 1929, even in 1928, the warnings of an economic disaster were heeded by some of the Wall Street denizens. It seems clear that everyone involved in the speculative boom of the late twenties knew that eventually stocks would drop. Who cares though? At the moment, we are in the business of making money. When the bulls are stampeding, it raises a cloud of dust that makes it hard to see danger. This boom of the 20s is almost as famous as the bust.

    16. H102 Lecture 18: The Crash And The Great Depression
    Stanley K. Schultz, Professor of History. William P. Tishler, Producer. Lecture 18. crashing Hopes The Great depression The Great depression. In 1929, Yale University economist ushered in the Great depression, the worst economic the roots of the crash and the effect of the Great depression on the
    http://us.history.wisc.edu/hist102/lectures/lecture18.html
    Stanley K. Schultz, Professor of History
    William P. Tishler, Producer
    Lecture 18
    Crashing Hopes: The Great Depression
    In 1929, Yale University economist Irving Fisher stated confidently: "The nation is marching along a permanently high plateau of prosperity." Five days later, the bottom dropped out of the stock market and ushered in the Great Depression, the worst economic downturn in American history. Although Americans often believe that the Crash was the starting point of the Great Depression, many historians point out that it wasn't the sole cause. This lecture examines the roots of the Crash and the effect of the Great Depression on the American public. Some questions to keep in mind:
  • Why were Americans so confident in the stock market in the years leading up to the Great Depression? How did the Psychology of Consumption shape the causes and effects of the Crash? How did stock market investing change during the 1920s? Who were the main investors and how did they pay for their investments? Explain the statement: "By 1929, much of the money that was invested in the stock market did not actually exist."
  • 17. The Crash Of 1929
    Excerpted from. AGAINST. OLIGARCHY. Essays speeches. 19701996. by. Webster G. Tarpley. PART 7. BRITISH FINANCIAL WARFARE 1929; 1931- 33. HOW THE CITY OF LONDON CREATED THE GREAT depression. by Webster G. Tarpley. December, 1996
    http://www.tarpley.net/29crash.htm
    Excerpted from
    AGAINST
    OLIGARCHY
    by
    Webster G. Tarpley

    PART 7 BRITISH FINANCIAL WARFARE: 1929; 1931- 33 HOW THE CITY OF LONDON CREATED THE GREAT DEPRESSION
    by Webster G. Tarpley
    December, 1996
    T The ravaged post-war, post-Versailles world of the 1920's provides the main backdrop for the following considerations:
      The events leading to the Great Depression are all related to British economic warfare against the rest of the world, which mainly took the form of the attempt to restore a London- centered world monetary system incorporating the gold standard. The efforts of the British oligarchy in this regard were carried out by a clique of international central bankers dominated by Lord Montagu Norman of the Bank of England, assisted by his tools Benjamin Strong of the New York Federal Reserve Bank and Hjalmar Schacht of the German Reichsbank. This British-controlled gold standard proved to be a straightjacket for world economic development, somewhat along the lines of the deflationary Maastricht "convergence criteria" of the late 1990's. This depression was rendered far more severe and, most importantly, permanent, by the British default on gold payment in September, 1931. This British default, including all details of its timing and modalities, and also the subsequent British gambit of competitive devaluations, were deliberate measures of economic warfare on the part of the Bank of England. British actions amounted to the deliberate destruction of the pound sterling system, which was the only world monetary system in existence at that time. The collapse of world trade became irreversible. With deliberate prompting from the British, currency blocs emerged, with the clear implication that currency blocs like the German Reichsmark and the Japanese yen would soon have to go to war to obtain the oil and other natural resources that orderly world trade could no longer provide. In 1931, Norman engineered a disintegration by detonating the gold backing of the pound sterling.

    18. The Great Depression (1929-1941)
    The crash in the market spelled disaster for the national economy fell into an unprecedentedperiod of depression. dropped from $4.399 billion in 1929 to only
    http://www.sparknotes.com/history/american/depression/section1.html
    Advanced Search FAQ Home Free Study Aids ... The Great Depression (1929-1941) Black Thursday: The Crash
    - Navigate Here - General Summary Context Terms, People, Events Timeline Black Thursday The Crash (Oct. 1929) Onset of the Great Hoover's Response The First New Deal The New Deal Fades The Second New Deal End of the New Deal US Culture During the Depression The Global Scale of the Great Depression Recovery and War Economy (1940-45) Study Questions Review Test Further Reading
    Black Thursday: The Crash
    Summary In the roaring 1920s, the United States bathed in previously unheard of prosperity. Industry and agriculture alike profited from the thriving economy. The Federal Reserve Board (known as "the Fed") practiced a policy of easy money, and consumer conf idence was high. Average income grew steadily throughout the decade and production soared. Levels of investment grew to new heights. At year's end in 1925, the market value of all stocks totaled $27 billion. By early October of 1929, that number had g rown to $87 billion. However, the economy began to slow down in 1928, and the trend continued in 1929. Agricultural prices slipped, a result of production surpluses and a downturn in business activity. In July of 1928, the Federal Reserve Board, took n otice and hiked interest rates in an attempt to slow investment to a pace more appropriate to the economic decline. Despite this and other warning signs, patterns of investment continued much as they had in the mid-20s, giving little recognition to the e conomic slowdown. The stage was set for a major market correction.

    19. Stock Market Crash (October 1929): Historical Context, Economic Impact And Relat
    to that of the United States, the New York crash brought down and the Western worldinto the decadelong Great depression, which ended (See 1929 - 1939 —The
    http://canadianeconomy.gc.ca/english/economy/1929stock.html
    Jump to Event Links
    Event October 1929 - Stock Market Crash: Markets Suffer the Worst Losses in Canadian History
    Overnight, individuals and companies were ruined. It was estimated that Canadian stocks lost a total value of $5 billion on paper in 1929. By mid-1930, the value of stocks for the 50 leading Canadian companies had fallen by over 50% from their peaks in 1929.
    Although the crash was sudden and deep, there were signs that it was coming. Earlier in 1929, stock prices had been volatile. Economic slowdowns in May and June hinted that the booming economy was heading for a recession. Export earnings were declining and the price of wheat plummeted.
    Economists and historians are still debating what caused the crash. At the time of the crash, Canada had no monetary policy or central bank, so there was little government intervention in the market. (See
    It is widely felt that the stock market collapse started a chain of events that plunged Canada and the Western world into the decade-long Great Depression, which ended only with the outbreak of the Second World War. (See
    Links Toronto Stock Exchange Homepage
    Source: Toronto Stock Exchange
    http://www.tse.com/en/index.html

    20. The Great Depression (1929-1939): Historical Context, Economic Impact And Relate
    (See 1929—Stock Market crash.) The crash set off that only created weaker demandand made the depression worse Canadian exports shrank by 50% from 1929 to 1933
    http://canadianeconomy.gc.ca/english/economy/1929_39depression.html
    Jump to Event Links
    Event 1929 - 1939 - The Great Depression
    .) The crash set off a chain of events that plunged Canada and the world into a decade-long depression. It was the beginning of the Dirty Thirties.
    While all of Canada suffered greatly, the regions and communities hit hardest were those dependent on primary industries such as farming, mining and logging, because commodity prices plummeted around the globe. Thus, the three Prairie provinces, where the wheat economy collapsed, and the municipalities where mining and logging were a mainstay saw the greatest decrease in per capita income between 1928 and 1933.
    The economy began to recover, slowly, after 1933. However, the Depression did not end until 1939, when the outbreak of the Second World War created demand for war materials.
    Many factors are believed to have caused the Great Depression. Speculation on the stock markets drove share prices to inflated levels, and the bubble burst when stock markets collapsed in the autumn of 1929. Consumer spending dropped, even though prices had been falling. Canada was suffering a trade deficit. Nature was also working against many Canadian farmers, as a devastating drought on the Prairies wiped out wheat crops.
    The Great Depression was a turning point for Canada. Before 1930, the government intervened as little as possible, believing the free market would take care of the economy, and that churches and charities would take care of society. But in the 1930s a growing demand arose for the government to step in and create a social safety net with minimum hourly wages, a standard work week, and programs such as medicare and unemployment insurance. (See

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