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 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-faire- government 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 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 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” 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