Great Depression in Canada

1. Great Depression in Canada

2. White Board • What is a Tariff? • Discuss? • What is the purpose of a tariff and does it increase or decrease trade?

3. Origins of the GD in Canada Similar to those of the US • Tariffs across the world cause decline in trade • Supply of manufactured goods exceeded demand • Decrease in price • Over dependence on the US economy • Heavy amounts of US money invested in Canada • Heavy debt –governments and individuals • US stock Market crash leading to crash of banks and lending • Dust Bowl also affected Canadian farmers

5. The Effect of the Great Depression • Overall in Canada, the incomes of families fell by over 50% • Imports fell by 55%; • exports fell by 25%. • Of 10 Million, 2 million Canadians were living off relief handouts • Canada’s unemployment rate went from 4% to 27% • Wheat price fell by 75% • Saskatchewan provincial income drop by 90% • Farms and homes were foreclosed

6. Prime Minister 1926-1930 Mackenzie King Response to the Depression (liberal) • responsibility of the provinces to aid their own citizens. • wasn’t prepared for the depression so he didn’t intervene • He refused to give federal subsidies to provinces that were Conservative • Subsidies are government $ to lower prices of goods for the populations • His approach lost him the Election 1930

7. White Board • Which American president can King be compared to and why?

8. R.B. Bennett Conservative Party of Canada and Prime Minister 1930-1935 • nickname “bonfire” because of his bombastic speaking style. • 1930 R.B. Bennett became Prime Minister of Canada. • millionaire as a corporate lawyer and businessman in Calgary. • he believed in capitalism- Laissez-faire- government should not intervene in economy Prime Minister R.B. Bennett

9. Discuss • Does Bennett’s background make him better fit or less fit to help the Canadian people out during the Great Depression?

10. Bennett’s Response to the Depression • He put $ 20 Million dollars towards emergency relief • He raised the tariffs on imports to 50% in order to protect Canada’s industries from foreign competition and end the trade deficit. “Bonfire” Bennett

11. Canada’s Reaction • R.B. Bennett’s plans made the depression worse as his protectionism cut off Canadian exports. • Many Canadians could not afford to put gasoline in their cars • Horses pulled pars- “Bennett Buggies” The “Bennett Buggy”

12. Attempts at Relief • Combined Federal and Provincial money to create work programs • Less money was made meaning less tax & meant little money for relief.

13. More of Bennett’s New Deal • Canadian Wheat Board- Try to sell more wheat world Wide and provide homes for farmers • Farmer’s Creditors Arrangement Act- Help indebted farmers lower their debt • Prairie Farm Rehab Act- try to find a solution for effects of Dust bowl • The Bank of Canada- Central Bank to control Canadian monetary policy • Canadian Radio Broadcasting Commission- Program help increase Broadcasting in Canada

14. PROTEST: The On to Ottawa Trek • workers began to ride the rails in order to find work. • 1000 relief camp workers climbed aboard freight trains and headed for Ottawa to protest their working conditions • Resulted in a major riot and police intervention

15. White Board • Which major protest can this be compared to in the US. • What is one major difference?

17. The Return of King • 1935, the Canadian people had enough of Bennett • Running under the slogan “King or Chaos”, King won the election. He’s Back Again

18. Kings Responses • King Challenged many of the New Deal Policies • Accepted-Increased gov spending and lower taxes helped keep the economy going • Side effect was increased debt

19. Actions Taken by King • Passed reciprocal trade with US- increase trade • Lowered Tariff- increased trade • National Housing Act – government subsidy for housing • National Employment Commission- jobs and relief for the unemployed • 1938, he transformed the Bank of Canada from a private entity to a crown corporation • IN the end only WWII got Canada out of the Depression

20. Other Political Parties offer their solutions • Bill Aberhart was a preacher and school teacher from Alberta • He thought that the Depression was caused by people not having enough money to buy goods and services; especially farmers. • His idea? Give every citizen $25 per month “prosperity certificate” so people could buy more products and help the economy. • His party was called the “Social Credit” Party. • His party was elected in 1935 in Alberta, but they never paid out the certificates. The party was a major force in the west and stayed in power until the 1970s in Alberta. It was also a major force in BC politics Social Credit Party leader “Bible Bill” Aberhart

21. The CCF • He was a “conscientious objector” during WW1 and worked as a minister in Winnipeg helping the homeless. • He believed that the free enterprise system had failed the people during the depression and that the government needed to take a greater role during the depression. • He proposed: Unemployment insurance, free medical care, family allowances and old age pensions. • Many of his ideas have been adopted in Canada. • His Co-operative Commonwealth Federation (CCF) Party later was renamed the NDP in 1961. J.S. Woodsworth

22. The Union Nationale • Maurice Duplessis blamed the existence of the Depression on the fact that many of Quebec’s industries were owned by Americans and English speaking Canadians. • He formed the Union Nationale so that Quebeckers would have more control over their economy. • The Union Nationale won the Quebec election in 1936 and remained a force in Quebec politics for the next 22 years Maurice Duplessis of the Union Nationale