After World War One the world faced a post war depression. However, some countries, like Canada, experienced great economic recovery. Canada also experienced cultural development after the war as the 1920's began. The 20's started off great, but they the ended terribly with the start of the depression.
Canada's economy in the 1920's is described as a roller coaster ride, starting with post-war depression then rising up with economic recovery. Up until 1924 Canada was still fairly poorly but in 1924 conditions improved. America was able to lend money to European countries, because they didn't face any destruction on the home front and they had a strong economy. These loans allowed European countries to purchase Canadian and American produce, this greatly supported Canadian economy. Canada also exported pulp and paper, hydroelectricity and mining materials to the Americans. The automobile industry also helped the Canadian economy, "by the end of the decade there were more than 12.5 million motorized vehicles in the country- (Newman 148). Leather, rubber, glass steel, tin, lead, aluminium, and nickel production was increased for use in the automobile, also petroleum was sought after for automobile fuel. Spin-off industries also became important with the production of the automobile. Road construction, tire and auto- parts plants, service stations, and auto supply dealers are examples of spin-off industries that automobile production made room for. Another way Canadians planned to gain money near the end of the twenties was with the stock market. Investment in the stock market increased, as value of stocks increased, "it seemed there was no surer, or faster, way of making money (Newman 152). People were able to pay off debts, and make a profit, as long as stock prices were rising. A company that bought and sold stocks, went from having a single office with two employees and 17 000 capital, to a forty office, fifteen hundred employee company by the end of the 20's.
