Transcript Canada Great Depression

 What is a Tariff?
 Discuss?
 What is the purpose of a tariff and does it increase or
decrease trade?
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
 Overall in Canada, the
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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
 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
 Which American president can King be compared to
and why?
 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-fairegovernment should not
intervene in economy
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?
 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
 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”
 Combined Federal and Provincial
money to create work programs
 Less money was made meaning less tax &
meant little money for relief.
 Canadian Wheat Board- Try to sell more wheat world
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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
 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
 Which major protest can this be compared to in the
US.
 What is one major difference?
 1935, the Canadian
people had enough
of Bennett
 Running under the
slogan “King or
Chaos”, King won
the election.
He’s Back Again
 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
 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
 Bill Aberhart was a preacher and school
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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
 He was a “conscientious objector”
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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
 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