Canada Passes Tariffs to Ease the Great Depression (Great Events from History II: Business and Commerce Series)
Article abstract: The Canadian government sought relief from the Great Depression by implementing new policies designed to improve the economy and put people back to work.
Summary of Event
On September 8, 1930, the Canadian parliament passed new tariff laws designed to help Canada weather what became the Great Depression. The laws were designed to exclude the importation into Canada of types of articles already being produced domestically, as well as products that Canadians might produce in the future. The 1930 laws by themselves were not critical; they were merely the first in a series of tariff laws passed between 1930 and 1932. The cumulative effect of these laws mitigated the Depression somewhat. For the most part, however, it was not until the onset of World War II that Canada recovered from the Depression.
Virtually every aspect of the Canadian economy went into a long-term tailspin starting in 1929. The worldwide economy downturn had a particularly adverse effect on the country’s balance of trade, since Canada was highly dependent on exports to fuel its economy. In fact, prior to the stock market crash in 1929, exports accounted for more than one-third of the country’s national income. The fact that many foreign countries, most notably the United States, reacted to their individual economic problems by curbing imports and raising tariffs hurt Canada enormously. Entire export-driven Canadian...
(The entire section is 2426 words.)
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