1. Political Response to the Depression By: Ms. Simmons

2. King’s Response Revenues were falling because people could no longer pay taxes so PM King balanced the budget by slashing government spending. Initial requests for Relief Payments were denied because he feared unbalancing the countries finances. He suspected that those requests might even be a Conservative plot.

3. Cont’d… Provinces in no shape to provide relief payments either, nor were municipal govn’ts. Most provinces and cities had over extended themselves during the good years and were in debt. Big cities increased their budgets to cover relief many times but then they had to cut services to pay for it. The end result was increased unemployment.

4. King doesn’t get it! PM King never truly understood that unemployment was a major issue for voters. His attitude cost him the 1930 election.

5. Bennett’s Response He isn’t really in favour of relief payments either, but he does pass the Unemployment Relief Act shortly after entering office. He continues to argue throughout his term though that relief is a provincial and municipal concern and not a federal one. Bennett promised to use tariffs as a way to break through world markets and end the depression.

6. Bennett cont’d… This plan doesn’t work! Canada was a major exporter of goods and depended on foreign trade. Raising the tariff barrier caused the country to lose much of it’s trade deals as other nations created trade barriers against Canada in response. People began to realize that Bennett did not have a solution. By 1932 1/3 of the workforce was unemployed.

7. Relief Camps and Drifters The country was filled with young, jobless, homeless men drifting from one place to another looking for work. The frightened middle-class Canadians and they were often arrested as vagrants. The federal government eventually set up Unemployment Relief Camps that would provide work, food, and shelter to the homeless men.

8. Cont’d…

9. Home???? Camps were more like prisons. Paid 20 cents a day Terrible food Bug infested beds Located deep in the woods so men were isolated Cleared land for highways and airports.

10. Other solutions… New political party formed in the west in 1932 (Co-operative Commonwealth Federation or CCF) Included farmers, labourers, socialists, intellectuals, and unhappy Liberals! Leader was J.S. Woodsworth.

11. CCF plans… Favoured public ownership of key industries and the establishment of a Welfare State. They didn’t want anyone to go hungry or be homeless. He argued for a national minimum wage and social insurance for workers. Wanted the government to spend money on public works to increase employment.

12. Social Credit Party Felt that Capitalism was wasteful! Banks hoarded money preventing customers from buying goods. The party was established by William Aberhart in 1935 and came to power in Alberta but was unable to deliver on it’s promises. Union Nationale comes to power in Quebec in 1936 under Maurice Duplessis. People are still unhappy about Conscription and this party stays in power for more than 2 decades!

13. Balance of Note Read pages 143-144 and take a note on the On-to-Ottawa Trek and Bennett’s New Deal. Come prepared to talk about those tomorrow!