A Reminder Stock Market incredibly popular during 1920s boom Ordinary people investing their money Shown in value of $100 investments: 1924 - $150m 1928 - $500m Feeling good times would never end Much of this was brought ‘on the margin’

How Bad was it? Black Tuesday October 29th 1929 – 12% in 1 day By 1932 – 89% from market high Canadian GDP dropped 40% Unemployment reached 30% 2009 – 8.7% unemployment (Can) US GDP dropped 6%

Causes of The Great Depression Overproduction and expansion Dependence on primary products Dependence on the US High Tariffs - Protectionism Too much credit – Buying on The Margin Psychological Uncertainty

Western Canada Hit Hardest The western provinces were the hardest hit by the Great Depression. As farming areas, Saskatchewan and Alberta suffered the most. Wheat per bushel $1.65 in 1929 to $0.30 in 1931. Later, Drought made the land was too dry Windstorms blew soils around Even grasshoppers became a problem, as millions ate crops that did grow!

Western Cities Cities across Western Canada already had many unemployed people. Influx of other people who had lost jobs in farming, forestry, mining and fishing moved to the cities Vancouver especially hard hit – people moving form prairie provinces to find work.

The Rest of Canada Maritimes (Antlantic Canada) less effected because boom not as big Massive manufacturing job losses in Quebec and Ontario. Women in workforce seen as stealing jobs from men

People didn’t know how bad it was Wealthy blamed unemployed and not economy or governement John Eaton said that the Depression was a good experience since it taught men the value of a job.

It Will Get Better On Its Own Prime Minister MacKenzie King King believed that the Depression was only a “temporary seasonal slackness” it would soon get better without government help. Laissez Faire economics

Mackenzie King’s Bad Decisions The Liberals had been in power during the 1920s 1920s economy had roared Government should leave alone Close to conservatives At start of depression Provincial governments asked federal government for help King refused saying he would not even give these governments “a five cent piece.” People thought King did not care about them

The Conservatives Want Power R.B. Bennett, leader of the Conservative Party Nicknamed “bonfire” Bennett, he was a powerful speaker Useful in new radio age Ready to take advantage of King’s five cent comment.

The 1930 Election At this time 15% of Canadians were unemployed King did not talk about the Great Depression – either didn’t know or didn’t care Bennett claimed he would improve Canada’s economy Ideas did not include government spending more money - went against Conservative economic ideas The Conservatives won election: Canadians blamed King for not doing anything to help the economy. Bennett was much better at using a new technology to campaign--the radio!

Bennett Tries… Raising tariffs (taxes) on foreign imports, Tried to increase trade with Britain Spent more on help for the unemployed than 1920s.

….And Fails Didn’t work: The raised tariffs did not help Canada or any other country Canada did not get any closer to Britain Provincial govts were asked to pay for programs but they didn’t have any cash! 1933, almost one-third of Canadians unemployed – worst year Canadians blamed Bennett. A newspaper came to be called a Bennett blanket Horse pulled cars called Bennett Buggy.

Bennett’s idea - Relief Camps Idea was to get unemployed out of the cities – remembered Winnipeg Bennett created relief work camps that provided work, food and shelter for these “single homeless persons.”

Relief Camps 175,000 people Though some camps were well run, comfortable and treated workers with respect, many were more like prisons. The pay was 20 cents per day, food was terrible, and bedbugs plentiful. The work of clearing land for highways and airports in swampy, bug-filled areas was hard. Also, camps were isolated in the wilderness, did not allow women. entertainment or alcohol. Relief camp workers began to organize a Relief Camp Workers Union Spread new ideas, especially communist Went to City of Vancouver and demanded better conditions and better pay

Onto Ottawa Trek Workers started on train from Vancouver to Ottawa, Wanted to go directly to the Federal Government and Bennett to complain. More workers got on when train stopped in every city. The train was stopped in Regina, Saskatchewan, and only march leaders were allowed to go on. This is collective bargaining – a key demand of the Winnipeg general Strike Talks did not go well Order given for Trekkers to leave Regina

Regina Riot Trekkers did not want to leave July 1st 1935 riot between trekkers and police 1 detective killed 130 trekkers arrested. Bennett believed that the trekkers were Communists, wanting to overthrow the government Some were but most wanted better conditions in camps. People blamed Bennet for the riot – they thought he had not been fair to trekkers Seen as similar to King’s 5 cent comment

From the Right to the Left 1934 – Bennett nervous about election in 1935 Needed something new – looked to the US Roosevelt’s New Deal had been successful Early 1935 – suddenly says government should be more involved in economy Laissez Faire failed - Shift left toward more socialist Bennett’s New Deal was ambitious and included unemployment insurance, minimum wage and limit on work hours Many Canadians didn’t think Bennett was genuine – last attempt to save unpopular government from defeat in the upcoming election.

A Desire For New Ideas People unhappy with Liberals and Conservatives Both of them could not solve problems. Both seemed like they did not care Was it time for something new? In Western Canada new, alternative political parties began.

CCF CCF founded 1932 by J S Woodsworth Made The Regina Manifesto – wanted end of Capatalism and government to run more of the economy Socialist but not communist Some small successes. Business and ordinary Canadians thought they were too extreme Became today’s NDP

Social Credit Mix of parties and ideas Led by ‘Bible’ Bill Aberhart Thought people should decide how to spend money not government Thought money should be sent to families and not spent by government Did become Premier of Alberta Ideas never became law

1935 Election Campaign During the 1935 election campaign Bennett tried to use the radio again to his advantage. King made few promises but did say he would close down the relief camps. King also ran on a campaign of “King or Chaos”, criticizing Bennett for his heavy-handed repression of the On-to-Ottawa Trek.

King Back in Office King would say, “what is needed more than a change in economic structure is a change of heart.” He did close the relief camps, but mostly because he viewed them as being too expensive. King lowered the tariff and signed a trade deal with the United States in an attempt to kick-start the Canadian economy. King did adopt a few of Bennett’s New Deal policies Slower and more careful than Bennett Canadians would have to wait for WWII to help their economy recover.