The Great DepressionThe Great Depression

1929-1929-19391939

The BoomThe Boom

During the 1920s, During the 1920s, many were many were buying buying stocks “on the stocks “on the margin”…margin”… in other in other words, words, paying by paying by creditcredit..

They They expected to pay expected to pay off debts as economy off debts as economy kept boomingkept booming..

President President Hoover’s SpeechHoover’s Speech

"We in America today are nearer to "We in America today are nearer to the final triumph over poverty than the final triumph over poverty than ever before in the history of this ever before in the history of this land... We shall soon with the help of land... We shall soon with the help of God be in sight of the day when God be in sight of the day when poverty will be banished from this poverty will be banished from this land." land."

Herbert Hoover in his acceptance speech Herbert Hoover in his acceptance speech

June, June, 19281928

The BustThe Bust Instead, Instead, the the

economy economy worsenedworsened. . They They lost their jobs.lost their jobs.

On Black On Black Tuesday, (Oct. Tuesday, (Oct. 29, 1929), the 29, 1929), the Stock Market Stock Market crashedcrashed..

The Stock Market Crash!The Stock Market Crash!People invested in the stock market and bought People invested in the stock market and bought

shares in companies.shares in companies.

If you buy stocks, you can If you buy stocks, you can make money selling themmake money selling them. .

The price that stocks are bought and sold for depends on The price that stocks are bought and sold for depends on how much money the company makes... how much money the company makes...

If profits are up, the stocks are worth more!If profits are up, the stocks are worth more!

However, However, October 24, 1929 prices began to slip October 24, 1929 prices began to slip and and thousands of shares were not purchased because there thousands of shares were not purchased because there were no buyers.were no buyers.

When the news hit the papers, When the news hit the papers, people panickedpeople panicked and and began selling their shares to get their money back.began selling their shares to get their money back.

Black Tuesday Oct. 29, 1929Black Tuesday Oct. 29, 1929 October 29, 1929 the stock markets October 29, 1929 the stock markets in New in New

York, Toronto and Montreal York, Toronto and Montreal CRASHED!CRASHED!

Within days, Within days, shares were worthlessshares were worthless. The . The economic downturn (recession) turned into a economic downturn (recession) turned into a worldwide worldwide DEPRESSIONDEPRESSION..

The stock market crash triggered the Great The stock market crash triggered the Great Depression of the 1930’s. Depression of the 1930’s. The Canadian The Canadian government thought the economy would correct government thought the economy would correct itself, but it would only get worse....itself, but it would only get worse....

CAUSES OF THE GREAT CAUSES OF THE GREAT DEPRESSIONDEPRESSION

High Tariffs = TaxesHigh Tariffs = Taxes To make money, To make money,

countries would countries would charge a charge a tariff or tax tariff or tax on on items being items being imported imported from other from other countries.countries.

Canada’s economy was Canada’s economy was based upon based upon selling selling our natural our natural resources resources

Eg: Lumber, paper pulp, Eg: Lumber, paper pulp, grains, fish and grains, fish and mineralsminerals

During the Great During the Great Depression, Depression, Canada Canada couldn’t sell their couldn’t sell their natural resources natural resources becausebecause other other countries couldn't countries couldn't afford afford to buy themto buy them..

This slowed down This slowed down trade between trade between countries and many countries and many companies went companies went bankrupt.bankrupt.

OverstockedOverstocked

Manufacturing Manufacturing businesses fared no businesses fared no better.better.

CompaniesCompanies had had been overproducing been overproducing and and couldn’t sell couldn’t sell their inventory.their inventory.

Nobody could Nobody could afford to buyafford to buy clothing, new cars clothing, new cars and appliances.and appliances.

With warehouses full of With warehouses full of stock, companies didn’t stock, companies didn’t make any more.make any more.

Factories closed down Factories closed down and workers were laid off and workers were laid off until the product could until the product could be sold.be sold.

Companies were forced Companies were forced to lower prices to sell to lower prices to sell goods. This caused goods. This caused DeflationDeflation

Canada’s Economy in the Canada’s Economy in the 1920s1920s

Canada was Canada was reliant on reliant on the U.S.A. to buy their the U.S.A. to buy their productsproducts..

Two areas hit worst are Two areas hit worst are pulppulp (BC, Ont. & Que.) and (BC, Ont. & Que.) and wheat wheat (Prairies).(Prairies).

Desperate YearsDesperate Years

Homeless are Homeless are treated like treated like criminalscriminals..

Thousands collect Thousands collect ““pogeypogey” = Welfare” = Welfare

Many rely on Many rely on food stamps, food stamps, bread lines.bread lines.

VagrantsVagrants

¼ of work force ¼ of work force is unemployedis unemployed..

They begin They begin riding the railsriding the rails: : hopping trains to hopping trains to find work.find work.

They live in They live in ShantytownsShantytowns

A favela, or shantytown, in Brazil

A favela, or shantytown, in Brazil

Government ResponseGovernment Response

King believed in King believed in laissez-fairelaissez-faire… … thought the thought the economy would economy would recover in its own recover in its own timetime..

He was booted He was booted from office in 1930.from office in 1930.

Government ResponseGovernment Response RB Bennett RB Bennett alsoalso didn’t didn’t

believe in government believe in government relief.relief.

Bennett wants high Bennett wants high import tariffsimport tariffs

Wants also to Wants also to make make sure that everyone sure that everyone else’s tariffs are lowelse’s tariffs are low so that we can make so that we can make money on our exportsmoney on our exports

However, due to public However, due to public pressure, he created pressure, he created ““make workmake work” ” programs.programs.

Hoover Dam (USA)Hoover Dam (USA)

Government ResponseGovernment Response

The economy didn’t improve.The economy didn’t improve. WHY?WHY?

Make-work jobs paid too littleMake-work jobs paid too little and and separated men from their families and separated men from their families and society, where they could spend the money society, where they could spend the money to re-boost the economy.to re-boost the economy.

Bennett’s new liberal ideas to help boost Bennett’s new liberal ideas to help boost economy came about too little too late… economy came about too little too late… Election ploy?Election ploy?

Racism As A SolutionRacism As A Solution Many blamed Many blamed

BlacksBlacks for causing for causing the Great Depression.the Great Depression.

In the United States In the United States and Canada, and Canada, the the KKK KKK became extremely became extremely popularpopular (20% of (20% of whites had joined at whites had joined at peak membership peak membership period).period).

Racism As A SolutionRacism As A Solution

Lynching was one Lynching was one way of dealing way of dealing with blacks.with blacks.

People People proudly took proudly took pictures of pictures of the blacks the blacks they had they had hung and hung and burned.burned.

LynchingLynching

ProtestProtestPeople became so angry, they People became so angry, they began a strike began a strike and and

planned to “planned to “ride the railsride the rails” to Ottawa to confront ” to Ottawa to confront Prime Minister Bennett.Prime Minister Bennett.

They were upset about:They were upset about: The jobs assigned were pointlessThe jobs assigned were pointless The military style of the campsThe military style of the camps Camps were overcrowded with poor conditionsCamps were overcrowded with poor conditions

In Canada, workers leave BC work camps paying 20 In Canada, workers leave BC work camps paying 20 cents/day to march towards Ottawa in the cents/day to march towards Ottawa in the ““On-to-On-to-Ottawa” trekOttawa” trek. .

They They ride on rail cars to get there.ride on rail cars to get there.

Hoboes Hopping Freight TrainsHoboes Hopping Freight Trains

Bennett’s ResponseBennett’s Response Bennett still Bennett still

believes that the believes that the government must government must let laissez-faire let laissez-faire rule.rule.

He orders police He orders police to arrest the to arrest the protestersprotesters..

One is killed.One is killed.SLIM EVANSSLIM EVANS

Forming the CCFForming the CCF In 1932, western leaders formed the In 1932, western leaders formed the

Cooperative Commonwealth Cooperative Commonwealth Federation (CCF), under JS Federation (CCF), under JS Woodsworth.Woodsworth.

Other New Political Other New Political PartiesParties

Social Credit PartySocial Credit Party (led by William (led by William Aberhart) wins 1935 Alberta Election Aberhart) wins 1935 Alberta Election under the belief that capitalism was a under the belief that capitalism was a wasteful system.wasteful system.

Aberhart wanted government to Aberhart wanted government to give citizens a “basic dividend”give citizens a “basic dividend” to to spend as they pleased.spend as they pleased.

Remains in power until 1971.Remains in power until 1971.

Other New Political Other New Political PartiesParties

In Quebec, Maurice Duplessis forms In Quebec, Maurice Duplessis forms the the Union NationaleUnion Nationale, a , a French French Catholic partyCatholic party. .

He He blames the English blames the English of Quebec of Quebec for their problems.for their problems.

Stays in power until 1959, although Stays in power until 1959, although he does little to change things.he does little to change things.

Natural Disasters! – Dust Natural Disasters! – Dust BowlBowl

Meanwhile farmers Meanwhile farmers face face huge droughthuge drought..

Lack of rain, high Lack of rain, high temperatures and wind temperatures and wind caused caused dustbowlsdustbowls in in Western Canada.Western Canada.

Farmers went Farmers went bankrupt bankrupt because their because their crops dried up. Drought!crops dried up. Drought!

Grasshoppers....ewwwGrasshoppers....ewww Grasshoppers hatched Grasshoppers hatched

by the millions in the by the millions in the prairies. prairies.

They thrive in dry They thrive in dry conditions conditions and farmers and farmers could see black clouds could see black clouds of the insects in the sky.of the insects in the sky.

Grasshoppers Grasshoppers destroyed over 80% destroyed over 80% of the left over crops of the left over crops in the 1930’s.in the 1930’s.

Citizens Re-Elect KingCitizens Re-Elect King

Why Not?Why Not? King was King was highly eccentrichighly eccentric with his with his

preference for communing with spirits, preference for communing with spirits, including those of Leonardo da Vinci, Sir including those of Leonardo da Vinci, Sir Wilfrid Laurier, his dead mother, and several Wilfrid Laurier, his dead mother, and several of his Irish Terrier dogs, all named Pat. He also of his Irish Terrier dogs, all named Pat. He also claimed to commune with the spirit of Franklin claimed to commune with the spirit of Franklin Delano Roosevelt, American president and Delano Roosevelt, American president and close friend.[26] close friend.[26] He sought personal He sought personal reassurance from the spirit world, rather reassurance from the spirit world, rather than seeking political advicethan seeking political advice..

Collect money Collect money from rich from rich provinces and provinces and give them to the give them to the poor provinces. poor provinces.

Equalization Payments:Equalization Payments:THE ROBIN HOOD THE ROBIN HOOD

ECONOMYECONOMY