Early Twentieth-Century Canada's Economy Analysis

In the early twentieth century Canada’s economy was strongly tied to farming and natural resources such as wheat, fish, minerals and pulp and paper. Most of these goods were exported to other countries, and as long as the world demand was high, Canada prospered. As the future would show, however, the economy’s dependence on such a narrow range of goods was very risky. In the late 1920’s several other countries, such as Australia and Argentina, greatly increased their wheat production and caused a surplus on the world market. The competition drove prices lower. Then in October 1929, the stock market collapsed, and then so did many peoples’ and companies’ fortunes. Without cash, products could not be bought; this drove demand even