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Great Depression . The Great Depression. Economic Review. Economic Boom or Prosperity ~ Wealth, strong business, people have money to spend – a period of growth and expansion Recession ~ Less severe than a depression, downturn of economic activity – value of goods declines
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Great Depression The Great Depression
Economic Review • Economic Boom or Prosperity ~ Wealth, strong business, people have money to spend – a period of growth and expansion • Recession ~ Less severe than a depression, downturn of economic activity – value of goods declines • Depression ~ Long period of severe economic and social hardship, massive unemployment and suffering • Recovery ~ The period following a recession during which the value of goods and services rises
Causes of Great Depression – ‘Dirty Thirties’ 1. Rise of consumerism led to the overproduction of manufactured goods • Radios, cars, kitchen appliances were made in mass quantities on the assembly line 2. Overproduction of wheat – led to problems for Canadian farmers who bought new equipment with credit • Wheat prices peaked in 1924 • Over-cultivation of fields depleted nutrients in soil which worsened the effects of the “Dust Bowl” when drought began in the early 1930’s • Prairies suffered most in Great Depression
Causes of the Depression – cont’d 3. High protective tariffs (taxes) by the United States on exports (goods sold outside of country) • Canadian goods became more expensive for US citizens to buy • Canada took revenge and did the same, causing more problems • Led to the decline in world trade, and turned the Depression from a crisis in the USA into a global problem 4. Speculation (gambling) on the stock market by buying stocks “on the margin” led to the crash on “29/29”. • People bought stocks on ‘credit’ – 10% down…
Effects of Great Depression • Massive unemployment • Soup Kitchens started up – as well as ‘food banks’ – supposed to be temporary but still exist today • The “pogey” or the “dole” was started – very small amounts of welfare given out by the government – not enough to survive, very humiliating experience for people • “California or bust!” – people began moving west looking for work, - rise of ‘hobos’ – homeward bound – ‘ridin’ the rails’ • Intense discrimination against minorities – women, immigrants (Asians, etc.), Jewish people, Aboriginal people
What was the response to the Great Depression? • 1. Socially • 2. Politically
Response to Great Depression • POLITICAL RESPONSE: very little done.. • In general both Mackenzie King, and then R.B Bennett were extremely unsuccessful in dealing with Great Depression
Depression ~ Prime Ministers Bennett King
1929-1930 Mackenzie King Part 1 – Ignored the problem, thinking it would solve itself – Believed Great Depression was a ‘temporary dilemma’ that would solve itself – ‘laissez-faire’… - no government involvement, let market ‘sort itself out’ Immediately voted out of power. Impending Disaster…
R.B. Bennett Bennett ‘buggy’ • Wealthy millionaire, lived in a hotel in Montreal and took over entire floor • Not likeable, stubborn, refused to listen to others, his attempts to solve problems were disasters – often ‘blamed’ for worsening depression • “Bennett Buggy”
According to PM Bennett… “One of greatest assets a man can have on entering life’s struggle is poverty” – easy to say for a millionaire…
Bennett& King’s Secret Lives BENNETT: Very poor policies, and ‘personal touch’/charisma, but people found out after his death that he gave $2.5 million dollars to charities between 1927-1937… Many letters were found of private citizens writing to Bennett for $, and he would send money in envelopes to them as gifts KING: Skilled negotiator, but famous for avoiding issues and delaying to see how events would play out… Criticized for not ‘acting decisively’. Though he was accused of being ‘boring’ – after his death 30 000 pages of journals were found. Turns out he believed in the occult, obsessed with mystical numbers, seances, and with commonly communicate with the dead including his mom, his dog and Wilfred Laurier.
Social Response to the Great Depression • Many charities, churches and some wealthy individuals were able to help people in need through soup kitchens, etc. -- • People lived together in ‘shanty towns’ – called Hoovervilles in USA after President Hoover… sense of community • Many people left their families to ‘ride the rails’
The Hobo • What is a hobo?
What is the modern day hobo? • If there was a hobo travelling through Surrey or even JH, what kind of marks do you think would be helpful for them?
How do you think a government or society should respond to poverty? • Choose a country in the world to research that whose economy is not strong • Answer the following questions: • What is the unemployment rate? • What demographic (age, sex) of society has the most unemployment? • What are some causes of the unemployment / poverty? • What kind of government services does the government have for people? (welfare, unemployment insurance, etc.) • How does this situation compare to Canada’s experience in the depression and the government’s response?
Social Response to Great D review: Positive (?) • Leave farm to ‘ride the rails’ • Hobo jungles and shanty towns • Rise of demand for workers’ rights and socialist ideas • Creation of soup kitchens Negative • Many women go back into ‘home’ • Anti-immigrant discrimination (fear of taking jobs) • Rise of KKK (against racial minorities, jews, catholics, socialists)
Political Response to the Great Depression Continued.. Review- Mckenzie King: lost election in 1930 for doing little to help those suffering and increased tension with provinces: “I won’t give a nickel to any province who does not have a Liberal government.” • Review- • Bennett: PM from 1930 to 1935- effects of Great Depression largely blamed on him: • “Bennett Buggy” • “Bennett Newspaper” • “Bennett Coffee”
Bennett’s Policies • Increased tariffs on foreign goods – other countries refused to trade with Canada • Limited help for farmers on Prairies…too little too late 3. Creation of Work camps: ‘Make work’ • Work Camps: isolated, poor wages, terrible living conditions – 20 cents a day for work – lice, bed bugs, etc. • Workers formed a union (RCWU), and their leader was a communist, scared many gov’t officials • Workers went on strike to demand better pay, food, clothing and shelter – huge protests in Vancouver • Led the On-to-Ottawa Trek - over 2000men jumped the trains to protest to the Prime Minister
Regina Riot • Bennett ordered the trains to stop in Regina, invited only leaders to Ottawa, put other men in a stadium • In Ottawa, talks lasted one hour, and the frustrated men returned to Regina where they gathered to make a new strategy • Bennett ordered the arrest of the men, and a riot broke out, one RCMP dead, several citizens injured • Hurt Bennett’s reputation greatly
Depression worsened… • Finally, Bennett introduced millions of dollars in relief payments including: • His own version of the ‘New Deal’ (the government social programs President Roosevelt was doing in the U.S.) • Unemployment insurance • Raising minimum wage • Critics accused him of trying to win the next election and not being genuine • Lost election to King “King or Chaos!”(Mac King Part 2) • King had very little success - Canada only emerged from Great Depression due to the outbreak of WWII
What did the Great Depression contribute to Canadian Society? • 1. New Political Parties - the CCF, Social Credit, Union Nationale • 2. Rise of CBC Radio Shows – Sunday evenings… • 3. Rise of Distracting Entertainment like Sports, and Celebrities like the Dionne Quintuplets
1. Rise of the CCF • The 1930’s saw the organization of workers into strong unions, especially in areas like the Prairies and the West • Farmers were the hardest hit, and they wanted political representation – someone to listen to them. They fought for socialist ideas • Rise of CCF – today’s NDP – fought against capitalism, for worker’s rights, social programs, and a modern ‘welfare’ state (where the government provides basic social services in boom AND bust times) • Explains today why the Prairies is considered the ‘heart’ of the NDP
2. Rise of the Social Credit Party • The Social Credit Party was a grassroots conservative party out of Albertathat disliked capitalism and believed strongly that the government should reimburse citizens with small payments when possible. • Founder was William Aberhart, or “Bible Bill” • Promised that every citizen would receive $25 if they voted for him. He did not fulfill his promise. However, he was Premier of Alberta for over a decade.
3. Union Nationale ~ Quebec • Maurice Duplessisformed a party that supported Quebec nationalism – roots of separatism • Relied heavily on support of Catholic church, and traditional ‘french values’ • Premier for over 20 years
Significance for Canada? • New political parties demanded that the government (liberal and conservative) be concerned about the needs of ‘everyday’ Canadians and all regions (response to regionalism) • Change in the role of gov’t: Beginning of modern ‘welfare state’ • Laid foundation for government institutions like free health care, welfare, etc.
CBC – Canadian Broadcasting Network • Created in 1934 • Radio Programs meant to protect Canadian culture from American influence • Divert Canadians from woes of Great Depression • Can listen to hockey on radio
International News • Japan invades Manchuria, the Rape of Nanking, Lytton Commission • Hitler is voted into power, taken over, introduced the Nuremberg Laws • Mussolini invades Abyssinia, League of Nations has placed sanctions… very ineffective • Britain/France have a secret deal uncovered (Hoare-Laval Pact) agree to give half of Abyssinia to Italy • Stalin – gulags, show trials, red scare
