1. The Great Depression

2. The Great Depression: What was it?
Depression: A prolonged period where the economy is doing bad
Decrease in production
Increase in unemployment

3. Causes of the Great Depression
Over Production:
During the Roaring 20s, businesses produced more goods than people were consuming. Supply was greater than demand, and so the prices began to drop.
The drop in prices led to investors doubting in a company’s profitability, and therefore withdrawing its investments.
As companies lose investments, they lose money and so they cannot afford to pay their workers so workers lose their jobs.
If people do not have a job, they consume less! It becomes a vicious cycle.

5. Causes of the Great Depression
Stock Market Crash: Thursday October 1929 (Black Thursday):
In New York City, many investors tried to sell their stocks on the Stock Market. However, there were very few buyers, and so this led to a drop in the value of the stocks (and eventually a crash).

6. If the stock market in the US crashes, why does that impact Canada’s economy?

7. Impact on Canada’s Economy
The stock market crashing in the US impact’s Canada’s economy because it leads to:
Drop in demand for Canadian Products: if many American’s are unemployed or facing financial problems, they will buy LESS Canadian products. This leads to a decrease in production and in exports from Canada
Drop in demands for natural resources: If American factories are producing less, they will also reduce their demands for Canadian natural resources (like metals and wood). This leads to a decrease in exports of natural resources.
Between , Canadian exports dropped by 50%, making many businesses go bankrupt.

8. Impact on Canadian Society:
Increase in Unemployment: businesses were producing less and making less profit. They could not afford to pay their workers, so many people lost their jobs. It became very difficult to find a new job, since most companies were trying to cut costs.

9. Review Questions
What event marks the beginning of the Great Depression?
What were the causes of the Great Depression?
What was an economic impact of the Great Depression?
What was a social impact of the Great Depression?

10. Government Intervention
Challenging Capitalism, Promoting Keynesian Economics

11. ***Government Intervention INCREASED during the Great Depression***

12. The Rise of the Union Nationale
In 1936, the Union Nationale won the provincial elections. Maurice Duplessis became the premier of Quebec.
The Duplessis Era ( and ) is characterized by:
Conservative ideology
Promotion of Agricultural lifestyle and traditional values
Limiting government assistance/intervention
Promoting the importance of the Catholic Church
Crackdown on the Unions
French-Canadian nationalism

13. Promoting Agriculturalism
In an attempt to combat the economic crisis, the Quebec government encouraged people to move back to the rural areas and work on the farms.
Duplessis believed that farmers, who could grow their own food, would always be safe from poverty.

14. Crack-Down on Unions Duplessis believed that unions were bad.
He adopted anti-union laws and would send the police to use force to break up strikes.
The Padlock Act: (1937): A law to protect Quebec against communist propaganda. The police has the power to close (padlock) the door of any place that was suspected of promoting communism

15. Review Questions
How did the government intervene in the economy during the 1930s?
What did Duplessis and the Catholic Church agree on as a solution to the problem of unemployment?
Describe the Union Nationale’s relationship with unions?

16. New Ideologies

17. Clerico-Nationalism What is it?
A type of French-Canadian Nationalism that is supported by the Catholic Church.
Promoted an agricultural and traditional way of life, as a way to save French-Canadian identity (language and culture)
Who supported it?
Lionel Groulx: a French-Canadian priest, historian and author. Wrote a book « The Call of the Race » about a Francophone who is discovering his roots/identity.
How did they spread their ideas?
Magazine L’Action Française (founded by Lionel Groulx)
Novels/books that promoted an agricultural and traditional way of life

18. Communism
What is it? An ideology that believes in the abolition of private property and the redistribution of wealth. Communists support workers and believe that change will only come through revolution.
Who supported it? The Communist Party of Canada: a political party created in They believed in ending capitalism and removing the influence of the church in government.
How did they share their ideas? Books and magazines, such as Clarté

19. Socialism
What is it?: An idea that believes in government or collective ownership of businesses and the distribution of goods and services.
Who supported it?
Cooperative Commonwealth Federation (1933): A socialist party who wanted to increase the government’s role in society.
Government should provide free health care and invest in infrastructures and services (transportation, communication, etc).

20. Populism
What is it? An ideology that criticizes the elite and defends the interest of the people.
Who supported it?
Social Credit Party: a populist party that supported giving citizens a monthly allowance to increase their purchasing power.

21. Fascism
What is it? An ideology that promotes a totalitarian (dictatorship) regime based on extreme nationalism (people who share common traits, form a nation).
Who supported it?
National Social Christian Party: A fascist party in Quebec, inspired by Adolph Hitler. The leader of this party was Adrien Arcand.

22. Ideological Spectrum

23. Review Questions
Explain the difference between French-Canadian Nationalism and Clerio-Nationalism in terms of « who belongs to the nation? »
Who was the main spokesperson for Clerico-Nationalism?
Explain a difference between socialism and capitalism.
Who was the leader of the Fascist Party in Quebec?