Roaring Twenties

After the First World War, the British Empire evolved into a free association of states known as the British Commonwealth of Nations. Canada remains a leading member of the Commonwealth to this day, together with other successor states of the Empire such as India, Australia, New Zealand, and several African and Caribbean countries.

The "Roaring Twenties" were boom times, with prosperity for businesses and low unemployment. The stock market crash of 1929, however, led to the Great Depression or "Dirty Thirties." Unemployment reached 27% in 1933 and many businesses were wiped out. Farmers in Western Canada were hit hardest by low grain prices and a terrible drought.

There was growing demand for the government to create a social safety net with minimum wages, a standard work week, and programs such as unemployment insurance. The Bank of Canada, a central bank to manage the money supply and bring stability to the financial system, was created in 1934. Immigration dropped and many refugees were turned away, including Jews trying to flee Nazi Germany in 1939.