What was the most signficant long term cause of the depression?

What was the most signficant long term cause of the depression?

 

The most signficant long term cause of the depression was there was too much easy credit. There were many other causes of the depression like the New York Stock Market crash, the shrinking demand of natural resources, protective tariffs, lack of financial regulation and Canada's economic ties with the United States. However, I believe that too much easy credit was the most significant cause of the depression. Small business' in Canada borrowed to much money which was fine until the prices dropped and banks demanded their money back. Many business went bankrupt which in turn caused many Canadian families particularly in the west to lose everything they owned. This hurt everyone accross Canada all because it was too easy to get money and people couldn't repay the money they owed. Most people never thought a depression would happen so they weren't ready when it did. This was the long term problem in Canada and the other smaller causes like protective tariffs made the situation worse until the depression happened. I believe that the easy access to borrow money was the most significant long term cause of the great depression.