The “Roaring 20’s”

The Economic Boom and Optimism of the 1920’s

New Opportunities

• Post-WWI:– Canadian economy experienced a short slump as

war industries closed and returned soldiers flooded the labour pool

– New markets opened for Canadian goods in a recovering Europe and strong, growing USA

– New industries (new tech) created jobs and Canadians had money to spend

• The Canadian economy began a period of rapid growth

Growing Industries• Agriculture:

– European farms were damaged in WWI and Canadian farms supplied much-needed food…at a price

– Specially designed (bred) “Marquis Wheat” gave Canadian farmers large crops to sell at home and abroad (it had a shorter growing season).

– 1925-28 were years of record high wheat crops– New mechanized equipment (tractors, threshers, etc.)

allowed for greater production– Farmers had extra $ and used it to expand their farms

and buy equipment

• Timber, Pulp & Paper:

– A construction boom meant timber was in high demand – Canada had forests full of it

– Newspapers multiplied and Canadian pulp was perfect for making newsprint

– Paper production became Canada’s largest industry – the US was our largest customer

• Energy:

– Cities were becoming electrified and people had new gadgets (appliances, lights) in their homes – demand for electricity increased

– Quebec and Ontario become huge producers & exporters of hydroelectric power (Niagara)

– Industry moved away from coal-fired machinery to electricity & oil

– People began driving trucks & cars – demand for oil increased

– Rich oil deposits were discovered in Alberta

– Huge amounts of $ were spent on oil/gas exploration

• Mining:

– Manufactured goods need raw materials, especially metals & ores

– Canada had huge deposits of nickel, zinc, lead and copper

– New mines opened and business boomed

Foreign Investment & Trade

• After WWI, Britain ceased to be Canada’s biggest foreign investor

• American companies were now pouring money into Canadian business/industry

• This was a change as American investors (unlike British) exerted greater control

• “Branch Plants” – were created which offered some problems

• Many Canadian businesses sold a majority of their goods to the USA

• Canada had 2 major trading partners (US & UK)

Rise of Consumerism

• With the economic boom came higher wages and a desire to spend them

• People wanted a taste of the “good life” after the hardships of the previous decade.

• New entertainments, fads and inventions were in high demand

• Inventions such as the automobile, radio, vacuum, washing machine, electric sewing machine, etc. were now “must haves”

Rise of Consumerism

• With the economic boom came more jobs & higher wages

• People wanted a taste of the “good life” after the hardships of the previous decade.

• New entertainments, fads and inventions were in high demand

• Inventions such as the automobile, radio, vacuum, washing machine, electric sewing machine, etc. were now “must haves”

• Advertising became much more prevalent and people were told they had to “Keep up with the Joneses” (not let their neighbours have newer/better stuff than them)

• A large consumer culture was created as people spent their money on all the items they now felt they wanted or needed.

• Businesses grew to support these demands and many new factories and jobs were created

• Thanks to Henry Ford’s new “Assembly Line” idea, automobiles had become affordable and many families bought the new contraptions

• Not everyone could afford to buy all these new products immediately, so stores had “buy now, pay later!” arrangements so that people could purchase items on credit – even stocks on the stock market

The Triumph of Capitalism!• The Canadian economy of the 1920’s was a

roaring engine that seemed set to propel Canada to the top of the world and create wealth and plenty for everyone.

• The government stepped back and allowed business and the free-market to run its own affairs. (laissez-faire capitalism)

• People (even workers) were investing in the stock market and making some profit from it.

• Jobs, goods and wages were higher than ever before (although wages were still pretty low for many workers) and there was now all kinds of great stuff to buy!

• After the horrors of WWI, it seemed that good times had finally arrived to stay.

Possible Problems…..