Social Studies

Chapter 5: Prosperity and Depression

The War is Over

During the Great War, Canada's industries were focused on wartime goods which drove up the cost of everyday goods. Returning soldiers focused that prices were doubled what they had known and their wages did not keep pace with prices. This forced lower sales which further hurt the Canadian economy.

Unemployment increased and may wars vets could not find work. The 1920's were a period of rapid economic growth for central Canada, the prairies and B.C.

Items like wheat were in a great demand and worldwide demand for minerals after WW|| created a period of growth in places like B.C. USA manufacturers such as Ford and GM built Branch Plants in Canada. These were factories built in Canada to avoid taxes on imported goods. Cities in Central Canada also benefited from increased manufacturing.

Value of goods increased 700%. Changing technologies was a spur to economic growth. 1920's electricity was in widespread use in urban area only. The use of electricity increased productivity in the workplace.

The Assembly Line

A row of workers and machines along which work is passed until the final product is made; greatly increased good production. As the 1920's came to a close employment increased, and more workers could afford to buy the new products and technology.

A Stalled Economy for Others

The economic boom of the 1920's did not reach the Maritimes. What was the reasons for this?

1. Shipbuilding had declined over the last 20 years and posts such as Halifax and St. John's couldn't modernize fast enough to compete with Montreal.  

2. The Canadians government increased freight rates which cost Maritime companies move to ship their goods to the marketplace. This forces them to raise prices and lost them customers.

3. By 1926, 42% of manufacturing jobs were cut causing many to leave the region.

4. Hydroelectric power was slower to develop meaning industries could not take advantages of...