Big Question I want to answer: Explain the causes of the Great Depression.
There are 6 main reasons why the Great Depression happened. The causes of it are various.
The connection between Canadian economic and American Economic was too strong and Canadian economic was not healthy enough due to the excessive dependence on raw materials. Lastly, the crash of stock market is also one of the reasons too.
Canadian economic dependent on the U.S. too much.
There are a lot American investments (e.g., branches and factories) in Canada which provide a huge amount of jobs for Canadian.
When there is a depression in the U.S., the companies are influenced, resulting in the bankruptcies of there Canadian branches, thereby many people in Canada will lost their jobs.
Canadian economic was not healthy enough.
The price of wheat was very high during the war, so there were still a lot farmers grew wheat after the war. But the demand was declined after the war, and many people lost their job because of that.
As there was a big size of raw materials (e.g., wheat and fuel) exporting proceeding in Canada, many people will lost jobs if the demand is decreased.
The crash of stock market also caused the great depression.
Many people borrowed loan that they were not able to pay back to buy stock, thereby lots of people get bankrupt after the crash.
If middle class people can not afford their debt, they cannot buy things. Companies can not sell commodities so it made the depression worse.
There are several causes of the depression, but this essay only elaborate on 3 of them, which are the dependence on exporting raw materials and the US and the crash of stock market.
It give Canadian an experience to prevent and combat the depression.