The Causes and the Politics Great Depression in Canada

Causes in Canada Uncertainty and optimism led to these underlying causes: 1. Canada’s economy relied heavily on exports to other countries European economies were still weakened by the effects of WWI Canada’s dependence a only few primary products Wheat, Fish/Minerals, Pulp/Paper 3. Overdependence on the United States as a market and a source of investment funds

Causes in Canada 4. Overproduction of goods- from wheat to manufactured products 5. On-margin stock purchasing (borrowing money to buy shares) Just as in the US, too many people were buying stocks “on margin” which means that they borrow money from the bank in order to buy more stocks. 6. Crash of the New York Stock Market, October 29, 1929 (“Black Tuesday” -Families lost all their money, businesses went bankrupt.

Drought in the Prairies –Dust Bowl In 1929, a terrible drought began that lasted nearly 10 years. Crops dried up – soil turned to dust. Alberta and Saskatchewan greatly impacted by the “Dust Bowl”. Nearly 14,000 farms were abandoned during the depression. Even Western farmers in Canada were unable to survive (because of the failing economy in the U.S., less demand for their products) Finally, in 1931-32 the first swarms of grasshoppers began destroying wheat fields across the prairies.

The Dirty 30’s Many men left their small rural farming towns (especially in the prairie provinces) and moved from city to city (towards Ontario) in hopes of finding work. In the Maritime Provinces fishing families and industries found a significant drop in demand for their product. This meant less profits and many workers were laid off. Much of what led to the Great Depression of the 1930's was a result of the prosperity of the 1920's. Through industrialization the economy had changed in so many ways that people did not know what the future held.

As the depression carried on, 1 in 5 Canadians became dependent on government relief. Approximately ¼ (25%) of the population was unemployed Depression was world wide People desperate for government to help therefore the development of dictatorships in Europe become a solution (Italy, Germany, Russia)

Political Parties in canada There are two main political parties* in Canada. Liberal Party Conservative Party *At any time, the group that is not in charge is called the opposition

William Lyon Mackenzie King King became Prime Minister in 1921. King – a liberal who was very conservative On the great depression: He believed the market was adjusting itself He believed actions should be made by the provinces not the fed. Gov.

Bennett became Prime Minister in 1930. RB Bennett Bennett became Prime Minister in 1930. Bennett – a conservative who was very liberal On the great depression: Increased tariffs by over 50% Fed. Gov. gave $20 million in relief to the people Progressive income tax, minimum wage, maximum work hours Bennett implemented: Wheat Board, Farm Rehab Act, Bank of Canada, Canadian Radio Broadcast Commission, and his New Deal

Bennett & The Depression Relief Camps - In 1932, the fed. government set relief camps for unemployed men. The workers cleared bush, built roads, planted trees, erected public buildings in return for room, board, medical care and 20 cents a day. (they were called the “Royal 20 centers”) Hostility in Relief Camps led to major protests organized by Workers Unity League (WUL) -> some communists -On-to-Ottawa Trek -Regina Riot Bennett blamed for inability to end Depression Bennett Buggies – Cars pulled by horses Bennettburoughs – homeless communities Bennett blankets - newspapers

William Lyon Mackenzie King King became Prime Minister again in 1935. He was elected using the campaign slogan “King or Chaos King – still had few ideas on how to fix Canada On the great depression (Second time around): He modified/finished a lot of the ideas that Bennett couldn’t pass Repaired North American trade with 1935 Reciprocal Trade Agreement Stumbled around until WWII helps pull Canada out of the GD

New Voices During the depression in Canada, many new political voices emerge and have a large political impact in Canada due to the unique geographic and cultural variance in Canada. Cooperative Commonwealth Federation (CCF), Social Credit, Union Nationale, Communist Party of Canada, Ontario Liberals, growth of Unionism

NOT an Encyclopedia/Summary Website Homework/Assignment Find an article or primary source that is about one of these 6 causes of the GD in Canada NOT an Encyclopedia/Summary Website Write a one paragraph (6-8 sentences) summary of the source Accurately CITE the source (Chicago Style) Take a stance! Write an argument about your cause in relation to any other cause we have learned (in Canada or the US)