Causes of The Great Depression

1. Causes of The Great Depression • Overproduction and expansion • Dependence on primary products • Dependence on the US • Stock market Crash – Buying on The Margin • International Debt • High Tariffs - Protectionism

2. How Bad was it? • Black Tuesday October 29th 1929 – 12% in 1 day • By 1932 – 89% from market high • Canadian GDP dropped 40% • Unemployment reached 30% • 2009 – 8.7% unemployment (Can) • US GDP dropped 6%

3. Western Canada Hit Hardest • The western provinces were the hardest hit. • As farming areas - Saskatchewan and Alberta suffered the most. • Wheat per bushel $1.65 in 1929 to $0.30 in 1931. • Later, Drought made the land was too dry • Windstorms blew soils around • Even grasshoppers became a problem, as millions ate crops that did grow!

5. Western Cities • Cities across Western Canada already had many unemployed people. • Influx of other people who had lost jobs in farming, forestry, mining and fishing moved to the cities • Vancouver especially hard hit – people moving from prairie provinces to find work.

6. The Rest of Canada • Maritimes (Antlantic Canada) less effected because boom not as big • Massive manufacturing job losses in Quebec and Ontario. • Women in workforce seen as stealing jobs from men

7. People didn’t know how bad it was • Wealthy blamed unemployed and not economy or governement • John Eaton said that the Depression was a good experience since it taught men the value of a job.

8. It Will Get Better On Its Own • Prime Minister MacKenzie King • King believed that the Depression was only a “temporary seasonal slackness” • it would soon get better without government help. • Laissez Faire economics

9. Mackenzie King’s Bad Decisions • The Liberals had been in power during the 1920s • 1920s economy had roared • Government should leave alone • Close to conservatives • At start of depression Provincial governments asked federal government for help • King refused saying he would not even give these governments “a five cent piece.” • People thought King did not care about them

10. The Conservatives Want Power • R.B. Bennett, leader of the Conservative Party • Nicknamed “bonfire” Bennett, he was a powerful speaker • Useful in new radio age • Ready to take advantage of King’s five cent comment.

11. The 1930 Election • At this time 15% of Canadians were unemployed • King did not talk about the Great Depression – either didn’t know or didn’t care • Bennett claimed he would improve Canada’s economy • Ideas did not include government spending more money - went against Conservative economic ideas • The Conservatives won election: • Canadians blamed King for not doing anything to help the economy. • Bennett was much better at using a new technology to campaign--the radio!

12. Bennett Tries… And Fails • Raising tariffs (taxes) on foreign imports, • Tried to increase trade with Britain • Spent more on help for the unemployed than 1920s. • Didn’t work: • The raised tariffs did not help Canada or any other country • Canada did not get any closer to Britain • Provincial govts were asked to pay for programs but they didn’t have any cash!

13. Bennet Blamed • 1933, almost one-third of Canadians unemployed – worst year • Canadians and Media blamed Bennett. A newspaper came to be called a Bennett blanket • Horse pulled cars called Bennett Buggy.

14. Bennett’s idea - Relief Camps • Idea was to get unemployed out of the cities – remembered Winnipeg • Bennett created relief work camps that provided work, food and shelter for these “single homeless persons.”

15. Relief Camps • 175,000 people • Though some camps were well run, comfortable and treated workers with respect, many were more like prisons. • The pay was 20 cents per day, food was terrible, and bedbugs plentiful. • The work of clearing land for highways and airports in swampy, bug-filled areas was hard. • Also, camps were isolated in the wilderness, did not allow women. entertainment or alcohol. • Relief camp workers began to organize a Relief Camp Workers Union • Spread new ideas, especially communist • Went to City of Vancouver and demanded better conditions and better pay

16. Onto Ottawa Trek • Workers started on train from Vancouver to Ottawa, • Wanted to go directly to the Federal Government and Bennett to complain. • More workers got on when train stopped in every city. • The train was stopped in Regina, Saskatchewan, and only march leaders were allowed to go on. • This is collective bargaining – a key demand of the Winnipeg general Strike • Talks did not go well • Order given for Trekkers to leave Regina

17. Regina Riot • Trekkers did not want to leave • July 1st 1935 riot between trekkers and police • 1 detective killed • 130 trekkers arrested. • Bennett believed that the trekkers were Communists, wanting to overthrow the government • Some were but most wanted better conditions in camps. • People blamed Bennet for the riot – they thought he had not been fair to trekkers • Seen as similar to King’s 5 cent comment

18. A Desire For New Ideas • People unhappy with Liberals and Conservatives • Both of them could not solve problems. • Both seemed like they did not care • Was it time for something new? • In Western Canada new, alternative political parties began.

19. CCF • CCF founded 1932 by J S Woodsworth • Made The Regina Manifesto – wanted end of Capatalism and government to run more of the economy • Socialist but not communist • Some small successes. • Business and ordinary Canadians thought they were too extreme • Became today’s NDP

20. Social Credit • Mix of parties and ideas • Led by ‘Bible’ Bill Aberhart • Thought people should decide how to spend money not government • Thought money should be sent to families and not spent by government • Did become Premier of Alberta • Ideas never became law

21. Bennett Gets Desperate • 1934 – Bennett nervous about election in 1935 • Needed something new – looked to the US • Roosevelt’s New Deal had been successful • Early 1935 – suddenly says government should be more involved in economy • Laissez Faire failed - Shift left toward more socialist • Bennett’s New Deal was ambitious and included lots of different ideas including unemployment insurance, minimum wage and limit on work hours • Many Canadians didn’t think Bennett was genuine – last attempt to save unpopular government from defeat in the upcoming election.

22. 1935 Election Campaign • During the 1935 election campaign Bennett tried to use the radio again to his advantage. • King made few promises but did say he would close down the relief camps. • King also ran on a campaign of “King or Chaos”, criticizing Bennett for his heavy-handed repression of the On-to-Ottawa Trek.

24. King Back in Office • King would say, “what is needed more than a change in economic structure is a change of heart.” • He did close the relief camps, but mostly because he viewed them as being too expensive. • King lowered the tariff and signed a trade deal with the United States in an attempt to kick-start the Canadian economy. • King did adopt a few of Bennett’s New Deal policies • Slower and more careful than Bennett • Canadians would have to wait for WWII to help their economy recover.