THE GREAT DEPRESSION IN CANADA

The Post-War Boom Post-war slump after the war Post-war slump after the war Increased prosperity in the U.S. created demand for Canadian goods Increased prosperity in the U.S. created demand for Canadian goods -raw materials (copper and zinc), electronics, autos, pulp and paper -raw materials (copper and zinc), electronics, autos, pulp and paper Agricultural prices rebounded in the mid 1920’s Agricultural prices rebounded in the mid 1920’s

The End of the Boom Canadian production exceeded demand Canadian production exceeded demand Increased tariffs cut trade Increased tariffs cut trade Over-dependence on staple products Over-dependence on staple products Over-dependence on the US economy Over-dependence on the US economy Heavy debt burden on the govt. and individuals Heavy debt burden on the govt. and individuals Reliance on the US economy Reliance on the US economy

The Economic Impact of the Depression Imports fell 25% Imports fell 25% Exports fell 55% Exports fell 55% Wheat prices fell 75% Wheat prices fell 75% Unemployment reached 27% Unemployment reached 27% Agricultural areas- falling prices and the Dust Bowl Agricultural areas- falling prices and the Dust Bowl Urban areas-unemployment & falling wages Urban areas-unemployment & falling wages

The Social Impact Canada was built on the promise of land ownership. Shattered by foreclosures Canada was built on the promise of land ownership. Shattered by foreclosures New Foundland was bankrupt and return to colonial status New Foundland was bankrupt and return to colonial status Loss of self-worth Loss of self-worth Immigration cut and xenophobia increased Immigration cut and xenophobia increased

Mackenzie King’s Response Claimed that relief was a responsibility of the provinces Claimed that relief was a responsibility of the provinces Refused to subsidize the provinces to keep the federal budget balanced Refused to subsidize the provinces to keep the federal budget balanced Lost the election of 1930 Lost the election of 1930

R. B. Bennett’s Response Increased tariffs to protect Canadian industry Increased tariffs to protect Canadian industry Allocated $20 million for relief which went to provincial, then local governments Allocated $20 million for relief which went to provincial, then local governments -Costs bankrupted the city of Montreal -Costs bankrupted the city of Montreal Set up a CCC type of program that paid young men 20 cents a day Set up a CCC type of program that paid young men 20 cents a day

Bennett’s Federal Programs Canadian Wheat Board- help in grain marketing Canadian Wheat Board- help in grain marketing The Bank of Canada- set up Canada’s first national bank The Bank of Canada- set up Canada’s first national bank The CBC- created the govt. broadcasting commission The CBC- created the govt. broadcasting commission Programs based on belief that free enterprise was the solution Programs based on belief that free enterprise was the solution

Bennett’s New Deal Changed his approach and looked to FDR’s program Changed his approach and looked to FDR’s program Planned to work on wages, working hours, farm credit, and unemployment insurance Planned to work on wages, working hours, farm credit, and unemployment insurance Lost the election to Mackenzie King in 1935 Lost the election to Mackenzie King in 1935

The On to Ottawa Trek Single unemployed men wandered in search of work and lived in “Bennett Boroughs” Single unemployed men wandered in search of work and lived in “Bennett Boroughs” Men organized in the work camps Men organized in the work camps Arthur Evans organized the trek, which soon had 2000 supporters Arthur Evans organized the trek, which soon had 2000 supporters Bennett decided to stop it in Winnipeg Bennett decided to stop it in Winnipeg

The Regina Riot The RCMP attacked and arrested over 100 Trekkers The RCMP attacked and arrested over 100 Trekkers The fighting lasted all day and hurt Bennett’s re-election chances The fighting lasted all day and hurt Bennett’s re-election chances

King’s Return Used the Canadian Supreme Court do undo Bennett’s New Deal Used the Canadian Supreme Court do undo Bennett’s New Deal Cut government spending and issued tax cuts Cut government spending and issued tax cuts His conservative approach hurt the Liberal Party and did little to pull the country out of the depression His conservative approach hurt the Liberal Party and did little to pull the country out of the depression