HUMA 1200 Lecture Notes - Lecture 8: Price Drop, Consumerism, Mixed Economy
23 Jan 2017
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Document Summary
The great depression (30s: causes of the depression. 4 key factors as to why the worst recession in our history occurred: raw material price drop (main) Canadian economy heavily depends on raw material exports. Worldwide decline for natural products such was wheat + timber ( to 0. 34 ) Excess of supply led to the the overproduction of products. Ex. farmers had new technology such as tractors. The increased productivity led to a surplus in the int"l market. Ex. soil eroding dust storms, grasshoppers eating crops. These would not be so devastating id the cost of production fell. Falling revenue + fixed/high cost of production = fallen profit + lost jobs. Since producers could no longer afford their materials, they started taking out loans. Some even fired their employees, leading to unemployment: us stock market crash (main) Materialistic greed + want to be rich = stock investments. Word spread that the stocks were overvalued.
