Timeline by Violet Chao

1914 : WWI

349372631 — 2025-02-26 07:00:33 UTC

The outbreak of WWI initially worsened Canada's recession, but had the opposite affect once demand for war production peaked as it created new jobs for all that were unemployed. The IMB became a huge war contributor, because it produce one third of Britain's military supplies. To fund the war, Canada transited from foreign borrowing, to the Victory Bonds that eventually produced more money from home than from Britain or the U.S.

The historical significance of this event is that it shifted Canada’s economy. While the war initially worsened Canada’s economy, the increased demand for military production created jobs and boosted the economy. Canada shifted from foreign borrowing to funding through the Victory Bonds, which made the country more financially independent and strengthened its economy.

July 1917 : The Income War Act

349372631 — 2025-02-26 07:09:59 UTC

The income tax was introduced in Canada in 1917, after the U.S. introduced its income tax in 1913. It was temporary because the government needed funding for the war. However, as the cost of war increased, the government raised the tax rate, lowered exemptions, and added many expansions, such as Surtaxes and the National defense Tax.

The income tax was introduced to help Canada during its economic recession. Initially a temporary measure, it has now become the main source of federal revenue. This act is important because it provided the government with the funds, and Canada would not have achieved victory without enough financial resources.

Oct 1917 : The Halifax Explosion

349372631 — 2025-02-26 07:15:34 UTC

The Halifax Explosion, caused by two ships crash into each other (one of them carried huge amount of explosives), was the largest explosion before the atomic bombs in 1945. Halifax was a crucial wartime harbor, handling much military supply. The blast triggered a tsunami, fire, and earthquake, destroying about 325 acres.

The Halifax Explosion, the largest non-nuclear blast in history, was equivalent to 3.2 kilotons of TNT. This disaster highlighted the importance of the Halifax harbor, which played a key role in wartime. The explosion killed thousands and destroyed many structures, halting all exports and imports, severely impacting the local economy. The event underscored the harbor’s significance during wartime and its value.

1918 : After War Recession

349372631 — 2025-02-26 07:28:07 UTC

After World War I, Canada's economy began to recover and transitioned from agriculture to industry. While agriculture remained part of the economy, its contribution declined compared to pre-wartime. Canada's economy became more dependent on its natural resources and exports. The war marked the beginning of Canada's modern economy, as industrial growth reshaped its economic structure.

This event transitioned Canada’s economy from being heavily reliant on agriculture before WWI to a more industrialized economy after the war. This transformation provided opportunities for economic expansion and contributed to Canada's urbanization, as industry became a central part of the economy.

1920s : The Economic Boom

349372631 — 2025-02-26 07:42:02 UTC

After WWI, Canada transitioned from a wartime economy to a peacetime economy, causing a short recession. However, recovery was swift as industry and manufacturing grew. Laborers, and farmer expecting better conditions, formed strikes. The government’s role in managing the economy during this period was minimal, led to wealth inequality.

The economy of the 1920s in Canada recovered and even surpassed pre-wartime due to the shift from a wartime to a peacetime economy. However, this growth led to wealth inequality, resulting in strikes from farmers and laborers. These changes significantly influenced future events and policies in Canada.

1929 : The Stock Market Crash

349372631 — 2025-02-26 07:48:01 UTC

The stock market crash began in late October 1929 and severely affected the global economy. People lost their savings, investments, and jobs. Though it happened in the U.S., Canada was also impacted, with national exports dropping by a third. Farms in the West faced a crisis, as nearly a third of the workforce was unemployed. This economic downturn had lasting effects on Canada’s economy.

This event not only impacted the economy but also taught valuable lessons on preventing similar crises. It demonstrated how quickly the stock market can collapse, leading to reforms that reshaped the stock market system and the bank system, making them more reliable and stable for the future.

Cause and Consequence

349372631 — 2025-02-26 07:59:45 UTC

The global economic recession caused by WWI, people buying stocks on margin, economic imbalances, and a weak banking system, led to the stock market crash. The consequence was the Great Depression, lasting nearly 10 years, Canada's unemployment reached a third of the population, and Canada's exports dropped by a third. Initially, investors sold large amounts of stocks due to economic pressure and a lack of confidence. Some large corporations and banks attempted to minimize market losses, but their efforts had only little impact on the stock market.

Continuity and Change

349372631 — 2025-02-26 08:18:26 UTC

Canada continued to rely on its rich natural resources and exports, but the shift from agriculture to technology after WWI marked a significant change in its development. Cities like Toronto and Vancouver became important economic hubs. This event highlighted the challenges faced during the economy recovery, and makes the labor went on strikes for better working conditions.