How do you respond to a Depression?

1. How do you respond to a Depression?

2. Economic Cycle Prosperity Recovery Recession Depression

3. By the numbers… • A depression is different than a recession because: • Unemployment drops even further (usually more than 10% are unemployed) • The Gross Domestic Product (GDP) drops more than 10% • 1930s unemployment – 33% • Drop in GDP – 42%

4. The Depression in Canada

5. What to do??? You might ask, what do we do when a recession or depression hits? Who is responsible for action?

6. Two views • 1929 Prime Minister: William Lyon Mackenzie King (Liberal) • Did not believe there was a “depression” and that the problem would eventually pass. • "With respect to giving moneys out of the federal treasury to any Tory government in this country for these alleged unemployment purposes, with these governments situated as they are to-day, with policies diametrically opposed to those of this government, I would not give them a five-cent piece." April 3, 1930

7. 1930: RB Bennett and the Conservatives These things only led the a large federal deficit. So Bennett had to cut back on spending and cancel many of these programs • “one of the greatest assets a man can have on entering life’s struggle is poverty.” • Proposed some changes to help Canadians make it through the Depression: • High tariffs • Large scale spending • Make work programs • Welfare

8. 1930 election 1930 – Bennett defeats King Starts relief camps for unemployed single men Men worked on public projects and received 20 cents a day, room and board Bennett also raised tariffs Plan was to force other countries to lower tariffs This didn’t work

9. Any way to meet the needs… Canadian citizens address the Depression in many different ways Door-to-door sales Begging Charities and churches Drifting Collecting public relief

10. Unemployment Relief Camps Fed. and prov. gov’t passed responsibility to municipalities Feds wanted nothing to do with Depression Provinces were helpless This cost King the election

11. 1935 - Bennett’s New Deal This is the beginning of what is referred to as Canada’s “social safety net” Progressive taxation Maximum work week Minimum wage Regulation of working conditions Unemployment Insurance Health insurance Pension plan

12. 1935 elections • Bennett’s failure to improve the economy led to his defeat in the 1935 elections. • Mackenzie King was re-elected in 1935. With the worst of the depression over, King implemented a couple relief programs: • National Housing Act • National Employment Commission • Trans-Canada Airlines (Air Canada) • The start of the war would be the thing that would put an ultimate end to the depression.

13. Relief Camps Families were given relief payments for children until these children reached the age of 16. Because of this, most of these young men left home to reduce the burden on their families. Thousands of unemployed rode freight trains to the west looking for work which didn't exist. The Conservative government of Bennett set up work camps to prevent the growing unrest among this wandering mass of young unemployed workers

14. The camps were located in remote areas such as northern Ontario and B.C.'s interior. Inmates called these camps "slave camps". They lived on war surplus clothing, bunked in tar-paper shacks, ate army rations and were forced to work six and a half days a week for twenty cents a day.

15. Relief Camps Due to the conditions these workers found themselves in, they formed the Relief Camp Workers Union (RCWU) in 1932 In the spring of 1935, RCWU went on strike. They filled the streets of Vancouver shouting "Work & wages" and "When Do We Eat?". They demanded real work wages, better food, clothing and shelter, and an end to military discipline.

16. Despite the overwhelming public support of "our boys", the federal government refused to negotiation with strikers. After this, the strikers voted to take their grievances to Parliament Hill in Ottawa. This mass journey to Ottawa was known as the “On-to-Ottawa” Trek