Great Depression in Canada

What is a Tariff?

Discuss?What is the purpose of a tariff and does it

increase or decrease trade?

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Similar to those of the USTariffs across the world cause decline in tradeSupply of manufactured goods exceeded

demandDecrease in price

Over dependence on the US economyHeavy amounts of US money invested in

CanadaHeavy debt –governments and individualsUS stock Market crash leading to crash of

banks and lendingDust Bowl also affected Canadian farmers

Origins of the GD in Canada

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

The Effect of the Great Depression

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 ConservativeSubsidies are

government $ to lower prices of goods for the populations

His approach lost him the Election 1930

Prime Minister 1926-1930 Mackenzie King Response to the Depression (liberal)

Which American president can King be compared to and why?

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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

R.B. Bennett Conservative Party of Canada and Prime Minister 1930-1935

Prime Minister R.B. Bennett

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

Discuss

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.

Bennett’s Response to the Depression

“Bonfire” Bennett

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 carsHorses pulled pars-

“Bennett Buggies”

Canada’s Reaction

The “Bennett Buggy”

Combined Federal and Provincial money to create work programsLess money was made meaning

less tax & meant little money for relief.

Attempts at Relief

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

More of Bennett’s New Deal

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

PROTEST: The On to Ottawa Trek

Which major protest can this be compared to in the US.

What is one major difference?

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1935, the Canadian people had enough of Bennett

Running under the slogan “King or Chaos”, King won the election.

The Return of King

He’s Back Again

King Challenged many of the New Deal Policies

Accepted-Increased gov spending and lower taxes helped keep the economy goingSide effect was increased debt

Kings Responses

Passed reciprocal trade with US- increase trade

Lowered Tariff- increased tradeNational Housing Act – government subsidy

for housingNational Employment Commission- jobs and

relief for the unemployed1938, 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

Actions Taken by King

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

Other Political Parties offer their solutions

Social Credit Party leader“Bible Bill” Aberhart

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.

The CCF

J.S. Woodsworth

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

The Union Nationale

Maurice Duplessis of the Union Nationale