Black Tuesday
Black Tuesday, which occurred in October 29, 1929, had devastating effect on Canadians and Canada’s economy in general. It was the period when the U.S. stock market witnessed the most devastating crash in history. The crash of the New York stock market negatively affected the economic growth of other states in the U.S. including that of neighboring countries such as Canada. It marked the beginning of the Great Depression, which saw the economies losing billions of dollars and countless jobs destroyed. ‘After a moment of apparent recovery, it fell definitely on black Tuesday, October 29.’ (Felix 70). During the period when Black Tuesday occurred, Canada’s economy was relatively small and dependent on well-established economies such as U.S. Since Canada produced raw materials manufactured and agricultural goods for export, a slump in the economy of its target destinations, mainly U.S. and Europe would substantially affect her economy. Canadians were particularly scared of looming job losses courtesy of the Black Tuesday and an imminent Great Depression that could follow. Even though many economists failed to agree on the actual cause of Black Tuesday, the consequences of the market crash are real.
The greatest concern among Canadians is the impact of Black Tuesday on cost of living for both Canadians working in the U.S. as well as those living in their native country, Canada. ‘This crash kicked off a general decline that contributed to the great depression of the 1930s.’ (Logue & Bryan, Chapter 14) Escalating costs of living coupled with increase in prices of essential household commodities would make cost of living unbearable especially to the highly vulnerable Canadians. It also separated banks based on either investment or commercial bank, and the division prevented banks from risking deposits in stock market. The Canadians also feared the New York market crash would devastate the bank systems in Canada.
Bibliography
Logue, Ann C, and Bryan Borzykowski. Day Trading for Canadians for Dummies. Mississauga, Ont: J. Wiley & Sons Canada, 2011. Print. Pg. 54
Felix, David. America Rising: Power and Political Economy in the First Nation. London: Transaction Publishers, 2009. Print. Pg. 70
Logue, Ann C, and Bryan Borzykowski. Day Trading for Canadians for Dummies. Mississauga, Ont: J. Wiley & Sons Canada, 2011. Print. Pg. 54
Logue, Ann C, and Bryan Borzykowski. Day Trading for Canadians for Dummies. Mississauga, Ont: J. Wiley & Sons Canada, 2011. Print. Pg. 54
Felix, David. America Rising: Power and Political Economy in the First Nation. London: Transaction Publishers, 2009. Print. Pg. …