Tuesday, 26 March 2013

Is Canada Independent?

    During the mid 1920's Canada was known as an independent nation but i don't think that we were completely independent. Canada's most important trade partner was the United States and when the US could no longer trade with them due to the Stock Market Crash causing the Depression, it had major effects on Canada. The farmers in Canada were dependent on the US to buy their food and when they didn't, most of them went broke. The results of the farmers not producing as much food meant that factories producing farming equiptment didn't need to produce as much so they laid off workers. The unemployment rate rose due to the lack of farm equiptment needed which meant that less people could afford cars or other appliances. This lead to more layoffs to people in the factories that produced those items as well. This was all in all a vicious cycle. The more people that got laid off, the less people could afford to buy things which meant that the people producing those things didn't have to produce them anymore ending up with them getting laid off. Canada's Depression started with the US Stack Market Crash which shows how much we depended on them for our own economy. If Canada was independent, why did the US Stock Market Crash have such a big impact on Canada?

1 comment:

  1. Sami, you clearly show the interdependence of the economy. You also clearly demonstrate how our dependence on the United States is proof that the country is not economically independent. Do you think there is such a thing a nation that is completely independent economically?