Point:
Canada's economy had always been closely connected with the United States
so it was inevitable that when the depression hit the United States that the
collapse of Canada's economy was soon to follow.
Evidence #1 (from research):
The Canadian economy depended so
much on staples, which were often
exported to other countries. Any decline
in foreign economies also hurts
Canada's economy. The most important
economy for Canada was the United
States-40% of our exports were sold to
the Americans. Therefore, when the
American economy failed, the Canadian
economy was soon to follow.
Evidence #2 (from research):
Because the U.S.A. did not need the
world's raw materials nearly as much
as other great powers, it became
protectionist. This meant that the
government protected home
industries from the competition of
foreign goods, by discouraging
imports through tariffs. American
protectionism caused other countries
to lose their export markets.Canada
was trying to sell its wheat to the
Americans and they imposed tariffs
doing so Canadian farmers suffered.
In this way, other countries had little
choice but to protect their own
industries and products by also raising
tariff barriers. Ironically, this cycle only
made the problem worse, as trade was
restricted even further.