What economic disaster did Newfoundland face in the 1930s?

• A. It saw a surge in fishing exports
• B. It experienced a mild recession
• C. It became self-sufficient quickly
• D. It collapsed during the Great Depression, causing widespread job loss

Answer: (D)

Newfoundland’s experience in the 1930s centers on a severe economic collapse tied to the Great Depression. The economy depended heavily on cod fishing and the fish trade, so when global demand and prices collapsed, incomes plummeted. With mounting debt and little to fall back on to diversify the economy, unemployment spread across communities. The downturn was so severe that responsible self-government ended in 1934 and a Commission of Government was put in place to run the colony. This combination of collapsing incomes and widespread job losses is what defines the disaster Newfoundland faced.