The End of the Former Financial World
The Great Depression was a period in time, of great struggles, survival and reforms for numerous individuals in Canada. Countless individuals all over the nation did not have their elementary requirements such as: food, employment, money, and shelter. The government of this period in history helped to establish some of our greatest financial policies. Policies such as maximum work week, minimum pay, unemployment insurance, health and accident insurance, and old-age retirement pension were all original introduced at some points in the Great Depression. These policies are at the present, built into the foundation of our economy. Canada's experience in the Great Depression does demonstrate the significance and importance of an economic community in society like the European Union.
Firstly, high tariffs that had being present on imported goods cut off global trade; these tariffs on foreign merchandise were meant to safeguard the same goods manufactured in Canada. "I can say that Mr. Bennett tried…His moves towards tariffs might have been good on paper, but they served to cut us of some good and large markets" these tariff resulted in international trade coming to a halt, as other countries placed tariffs on imported merchandises as well. Almost every nation sought to export goods, but then again none sought to import goods. "World trade in the thirties declined by more than 50 per cent". This formed an Autarky financial system as no countries were importing or exporting goods. Had we been in an economic community then high tariff would not have been placed, we possibly will have imported good from other places at low rates, and may possibly have supplied goods to other countries at low competitive rate. If high tariffs had not been placed, global trade would not have come to a full stop which would not have led to such a drastic depression as the Great Depression. This demonstrates the importance of an economic community in society.
Similarly, the prairies farms throughout the late 1920's had produced a surplus of harvest; which led to a dramatic decline in the sale price of their goods. During this time, industries all over Canada, also over produced their merchandises and grew excessively enormous. When the depression approached, industries could not sell of their manufactured goods and grew greatly into dept. "When the market for wheat collapsed, so did the entire economy, in two year farmers income went down by 90%... thousands of farmer left the province to go to relief camps". Farm did not have a market for the harvest they had produced and had to shut down; initiating unemployment rates to increase. Also large corporation laid off large number of workers during the depression to keep the functioning price low, which caused unemployment rates to soar.
The strange and terrifying thing about the Depression...