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Conditions In The Great Depression. 1929-1939. BIG 3 REVIEW QUIZ. Who were the two Prime Ministers during the Depression? What parties were they from? (/2) In the Supply and Demand concept, if Demand goes down and Supply remains constant, what happens to prices? (/1)
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Conditions In The Great Depression 1929-1939
BIG 3 REVIEW QUIZ • Who were the two Prime Ministers during the Depression? What parties were they from? (/2) • In the Supply and Demand concept, if Demand goes down and Supply remains constant, what happens to prices? (/1) • Name one initiative taken to try to solve the depression by each Prime Minister. (/2) • Bonus: What years was Bennett in office?
1933- The worst year • GNP in 1933 had dropped 40% from pre-crash levels • Canada’s exports declined by half • Over-dependence on natural resource exports • 26.6% unemployment • In some regions of Canada unemployment was 30-50%
Relief • Most relief funds came in the form of public works • Disorganized attempt meant that only $4 million of the $20 million went in direct relief to people • Registering for relief was humiliating and difficult • Relief usually came in vouchers (food stamps)
Depression in the Prairies • Record low prices for grain • Most severe and prolonged drought in history • 1929-1937 drought in Palliser’s Triangle • WWI $2 a bushel for wheat • 1932-33: 39.375 cents
Labour Camps • Riding the Rails made government nervous • Work camps for unemployed, single men • Under the jurisdiction of the Department of National Defence • 20 cents a day • 1932 saw the establishment of the first labour camps • Lack of funds • Single men could not get relief
Unrest in the camps • In the four years of the camps there were 359 strikes, riots and disturbances • RCWU was associated with the Communist party and began to organize protests for decent wages • On to Ottawa began in BC
The On to Ottawa Trek • April 1935 - 3000 relief camp workers converged on Vancouver riots and protests for weeks • 1800 got on trains for Ottawa • June 14, 1935 - 2000 men converged on Regina • Arthur “Slim” Evans and seven of his men agreed to a meeting with the Prime Minister
The Six Demands of the workers • 50 cents an hour wage for unskilled labour and union rates for skilled labour • All workers must be covered by the Compensation Act and adequate first aid for the jobs • Elected committee of relief workers • Department of National Defence no longer be in charge of the camps • A genuine system of social and unemployment insurance • All workers guaranteed the right to vote
Regina Riot • The meeting ended in a stalemate • Evans returned to Regina • July 1, 1935 rally in Market Square • Riot ensued • 1 police office dead and 100 protesters arrested • 8, including Evans were sent to jail
Confronting the Depression • Tariffs for protection • Smoot-Hawley tariff devastated Canada (30-60%) • In July 1932 Bennett makes a half hearted attempt at free trade at the Imperial Conference in Ottawa
Bennett’s New Deal • 1935 election year • Proposed a “New Deal” like FDR’s in the US • Proposed a government program of unemployment insurance • Prairie Farm Rehabilitation Act • The Canadian Wheat Board • The Natural Products Marketing Board
New Deal • Thwarted in the courts, but also proposed UI and national health insurance • Bank of Canada Act- created a central bank • Canadians did not trust Bennett
1935 Election • Mackenzie King made few promises • Promised to disband the work camps • 1935 the Conservatives lost 3/5 of the vote capturing only 40 seats • King won 125 seats • King adopted some New Deal policies, but not much changed for Canadians
New Political Parties • Social Credit- William Aberhart $25 a month to make up for the lack of purchasing power • 56/63 Albertan seats • 15/17 seats in Ottawa from Alberta • “Bible Bill” (William) Aberhart
New Political Parties • The Co-operative Commonwealth Federation formed in 1932 • Regina Manifesto- social democracy • Government control of key industries • Welfare state- medicare, welfare and UI • J.S. Woodsworth • 1944 Tommy Douglas elected in Saskatchewan
New Political Parties • In Quebec the Church pushed for reform • Anti-socialist but proposed programs to regulate monopolies and improve conditions • Some Liberals broke away and formed the Action Liberale nationale • Maurice Duplessis of the Conservative party formed an alliance to create the Union Nationale in 1935
The Communist Party • Tim Buck leader • Communist Party found an audience during the Great Depression • The Party was outlawed in 1931 • Tim Buck and other leaders jailed from 1932-1934 • Protests, marches and hunger strikes
Aboriginal Peoples in the Depression • Services cut back to bare minimum as outlined by Treaties • Birthrate twice as high • Death rate 4x as high • Metis had it worse as there were no treaties • 1934 90% of Metis in Alberta had TB, paralysis, blindness or syphilis
Confronting the Outsider • Relief for Chinese $1.12 versus $2.50 a week for non-Chinese • Sections 40 and 41 of the Immigration Act allowed for deportation of unemployable recipients of relief • In Alberta 1930-1934 2547 immigrants were deported • This discouraged many from applying for relief
Immigration • Even before the Depression, immigration was discouraged • Jews were especially discouraged • Canada not welcoming to Jews escaping Nazi Germany • Frederick Blair “none is too many”
Conclusion • The demand for goods in World War II finally pushed Canada out of the Great Depression • The growth of the welfare state and gov’t supervision of vital aspects of the economy continued into the 1980s as a result of the Great Depression