1. Government Response to the Great Depression
Politics During Hard Times

2. Government Intervention?
Laissez Faire
Minimal government involvement
Keynesian Economics
Governments should jump start economy and spend their way out of the Depression
Governments should borrow money to spend on huge employment projects

3. Question to Consider
With a partner answer the following question:
Do you think Keyne’s theory of government spending could lift a country out of a depression? Why or why not?

4. U.S. Response to Great Depression
President Roosevelt
Took office in 1933
Supported Keyne’s theory
Did not pull U.S. out of the depression but did help millions survive

5. Roosevelt’s Response Introduced the New Deal
Created public work programs for unemployed and farmers
Introduced Social Security Act
provides several social assistance programs
Public Works Project: Bonneville power dam in Oregon

6. How did the Canadian Government Respond to the Great Depression?

7. Mackenzie King Leader of Liberal party
Prime Minister from , a few months in 1926 and from
Unprepared

8. Mackenzie King
Thought provincial and municipal governments were responsible to help desperate Canadians
“Not a five cent piece” to any Conservative provincial government

10. 1930 Election
King’s attitude towards the Depression cost him the 1930 election
R.B. Bennett, leader of Conservatives, becomes Prime Minister

11. Bennett’s Response
Gave provinces $20 million for work-creation programs/relief such as relief camps and pogey
Increased tariffs by 50%
Prairie Rehabilitation Act
Economy does not improve

13. Bennett’s New Deal (1935) Based on FDR’s New Deal Called for:
Taxes based on income
Max. # of hours in work week
Min. wage
Regulation of working conditions
Unemployment insurance
Health and accident insurance
Support for farmers and seniors
Too little, too late

14. Blame it on Bennett Became a target for people’s anger
Bennett barnyard
Bennett blanket
Bennett coffee
Bennett Buggy

15. Federal Election Time! 1935: voters fed up with Bennett
Mackenzie King (Liberal) returns to power

17. Mackenzie’s Response Lowers tariffs Closes relief camps
Seeks solutions for farmers
National Employment Commission (1936) - recommended spending millions to create jobs
King spends a fraction of recommended amount
Royal Commission on Dominion Provincial Relations (1937): Rowell-Sirois Report
Recommended federal gov’t give $$ to provinces
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18. Looking to Alternative Parties
CCF (Cooperative Commonwealth Federation) created in 1932
Socialist party
Regina Manifesto (platform)
Supported social programs, public works and public ownership of key industries
Leader: J.S. Woodsworth

19. The Social Credit Party
Leader William Aberhart
Thought government should release money into the economy so people could spend it
Promised citizens a “basic dividend” - $25/month
Won election in 1935 in Alberta

20. Provincial Response

21. In Ontario Liberals gain power in 1934 Premier: Mitch Hepburn
Did little for the unemployed
Railed against big businesses

22. In Quebec
Maurice Duplessis- brought Union Nationale party to power in 1936
Nationalistic French-Canadian party
Blamed many of Quebec’s social and economic problems on the English minority
Did little to improve situation in Quebec

23. In British Columbia
Dufferin Pattullo (liberal) elected as premier in 1933
Believed in greater provincial spending
Reforms: shorter work day, higher min. wage and increased relief payments by 20%
Launched public works projects: Fraser River Bridge and Vancouver City Hall
Projects short lived