The Great Depression. A Shift in Ideas ► The communist movement met very little support in Canada for many reasons Belief in democratic principles

The Great DepressionThe Great Depression

A Shift in IdeasA Shift in Ideas

►The communist movement met very The communist movement met very little support in Canada for many little support in Canada for many reasonsreasons Belief in democratic principlesBelief in democratic principles ProsperityProsperity Ability of the powerful industrialists to Ability of the powerful industrialists to

influence the governmentinfluence the government

Prelude to DepressionPrelude to Depression

►The Canadian economy of the twenties The Canadian economy of the twenties was booming and the future looked was booming and the future looked brightbright

►Record crops and a Record crops and a

Laissez-faire attitude Laissez-faire attitude

towards business seemed towards business seemed

to herald an age of to herald an age of

unchecked prosperityunchecked prosperity


►The Economy had three distinguishing The Economy had three distinguishing featuresfeatures Relied heavily on exportsRelied heavily on exports It was closely tied to the American It was closely tied to the American

EconomyEconomy Canada had over expanded (using Canada had over expanded (using

borrowed money for production)borrowed money for production)

►This left the economy in a precarious This left the economy in a precarious positionposition


►Competition from Europe increased as it Competition from Europe increased as it recoveredrecovered

►The record crop of 1928 could not be The record crop of 1928 could not be soldsold

► In order to protect domestic producer the In order to protect domestic producer the United States introduced the Hawley-United States introduced the Hawley-Smoot Tariff ActSmoot Tariff Act

►This act raised tariffs on imported goodsThis act raised tariffs on imported goods►The Mackenzie King Liberals also raised The Mackenzie King Liberals also raised

tariffs to protect Canadian producerstariffs to protect Canadian producers

The CrashThe Crash

►On October 29, 1929 investors made On October 29, 1929 investors made fearful of falling prices began selling fearful of falling prices began selling stock at an alarming ratestock at an alarming rate

►This led to a world This led to a world

wide economicwide economic

collapsecollapse

The Depression Starts The Depression Starts

►The stock market crash of 1929 was The stock market crash of 1929 was the beginning of an era stretching the beginning of an era stretching from 1929-1939 known as the Great from 1929-1939 known as the Great DepressionDepression

The Depression DeepensThe Depression Deepens

►The depression affected all aspect of The depression affected all aspect of the Canadian economythe Canadian economy FarmingFarming RailwaysRailways AutoAuto

►Without the foreign markets people Without the foreign markets people did not have a way to sell goodsdid not have a way to sell goods

►Without a place to sell goods no one Without a place to sell goods no one had money to buy goodshad money to buy goods

The Depression DeepensThe Depression Deepens

►As money became scarce business As money became scarce business owners were forced to cut costs and owners were forced to cut costs and fire employeesfire employees

►Unemployment skyrocketedUnemployment skyrocketed

The Farmers The Farmers

►Drought also struck the prairies further Drought also struck the prairies further limiting the ability to generate revenue limiting the ability to generate revenue in the Canadian westin the Canadian west

The Farmer Cont…The Farmer Cont…

►Thousands of farmers were forced into Thousands of farmers were forced into bankruptcy. Nearly 250 000 bankruptcy. Nearly 250 000 Westerners migrated from the prairies.Westerners migrated from the prairies.

Depression PoliticsDepression Politics

►Prime Minister Mackenzie King Prime Minister Mackenzie King promised to “contribute to relief” but promised to “contribute to relief” but said “not a five-cent to a province with said “not a five-cent to a province with a Tory administration”a Tory administration”

Unprecedented Crisis and Unprecedented Crisis and Traditional AnswersTraditional Answers

►The Canadian government's response to The Canadian government's response to the Depression was to maintain long-the Depression was to maintain long-standing assumptions and practices standing assumptions and practices concerning the role of governmentconcerning the role of government

►Prime Minister Mackenzie King refused Prime Minister Mackenzie King refused to provide the provinces with additional to provide the provinces with additional funds to alleviate the growing distress. funds to alleviate the growing distress.

►His inaction contributed to his His inaction contributed to his government's defeat in the 1930 federal government's defeat in the 1930 federal election. election.

The Bennett YearsThe Bennett Years

►Bennett becomes Prime Minister Bennett becomes Prime Minister ►Bennett started a program similar to Bennett started a program similar to

that of Franklin Roosevelt’s “new deal”that of Franklin Roosevelt’s “new deal”

Bennett’s Response Bennett’s Response

►He was even more reluctant to initiate He was even more reluctant to initiate extensive government intervention in extensive government intervention in economic and social arenas. economic and social arenas.

►He disliked spending money on massive He disliked spending money on massive public works or relief payments.public works or relief payments.

► In his opinion, unemployment was a In his opinion, unemployment was a provincial and municipal responsibility, provincial and municipal responsibility, and neither level of government could and neither level of government could expect significant funds from Ottawa.expect significant funds from Ottawa.

What is a Man to Do?What is a Man to Do?

►While government "inaction" fuelled While government "inaction" fuelled frustration among the unemployed.frustration among the unemployed.

►The government feared that the The government feared that the thousands of unemployed would thousands of unemployed would embrace communist beliefs and pose embrace communist beliefs and pose a threat to the political and economic a threat to the political and economic status quo. status quo.

Idle Hands are the Devils Idle Hands are the Devils PlaygroundPlayground

►Work camps were set up and men Work camps were set up and men were paid $0.20 a daywere paid $0.20 a day

►The purpose of theseThe purpose of these

camps was to keep the camps was to keep the

men out of the cities men out of the cities

and keep them from and keep them from

becoming communistsbecoming communists

On-To- Ottawa TrekOn-To- Ottawa Trek

► The camps were isolated, the work was The camps were isolated, the work was hard, and the pay was poor. hard, and the pay was poor.

► By the summer of 1935, thousands had left By the summer of 1935, thousands had left the camps and congregated in Vancouver. the camps and congregated in Vancouver.

► They decided to trek by rail to Ottawa and They decided to trek by rail to Ottawa and demand government action.demand government action.

Of They GoOf They Go

►Hundreds of unemployed joined the Hundreds of unemployed joined the On-to-Ottawa Trek as it traveled On-to-Ottawa Trek as it traveled across the prairies. across the prairies.

Reading Reading

►The “On – To – Ottawa Trek” The “On – To – Ottawa Trek” ► In groups of Four – Five do the reading In groups of Four – Five do the reading

and then discuss the significance of and then discuss the significance of these eventsthese events

►What impact does this have on the What impact does this have on the common person?common person?

►What impact does this event have on What impact does this event have on Canada? Canada?

►Be prepared to share your discussion Be prepared to share your discussion with the rest of the class.with the rest of the class.


►Bennett also tried to reach out to Bennett also tried to reach out to world markets world markets

►Bennett tried once again to revive the Bennett tried once again to revive the idea of colonial preferenceidea of colonial preference

►He succeeded in negotiating a deal He succeeded in negotiating a deal where countries of the British where countries of the British Commonwealth would lower tariffs if it Commonwealth would lower tariffs if it did not affect their own industrydid not affect their own industry

►This proved ineffectualThis proved ineffectual


► In 1935 with an election around the In 1935 with an election around the corner Bennett introduced his “new corner Bennett introduced his “new deal” of government spending on social deal” of government spending on social programsprograms

►The Liberals attacked Bennett claiming The Liberals attacked Bennett claiming that the programs were outside the that the programs were outside the rights of the Federal Governmentrights of the Federal Government

►Bennett was defeated and King Bennett was defeated and King returned to powerreturned to power

King…AgainKing…Again

►King then sent Bennett’s “new deal” to King then sent Bennett’s “new deal” to the courts where it was determined the courts where it was determined that it was not constitutionalthat it was not constitutional

►The powers for these reformed rested The powers for these reformed rested with the Provincial governmentswith the Provincial governments

►Upon winning the election, King's Upon winning the election, King's Liberals quickly negotiated the Liberals quickly negotiated the Reciprocal Trade Agreement with the Reciprocal Trade Agreement with the United States. United States.

OverviewOverview

►Classic Liberalism was not able to Classic Liberalism was not able to repair the damage of the depressionrepair the damage of the depression

►The market would not right itselfThe market would not right itself►The idea of government involvement The idea of government involvement

in the economy had become more in the economy had become more acceptedaccepted

►The country had not fallen to The country had not fallen to communismcommunism

3 – 2 – 1 3 – 2 – 1

3 - Things you learned 3 - Things you learned

2- Things you already knew2- Things you already knew

1- Question 1- Question

Documents

The Great Depression. A Shift in Ideas ► The communist movement met very little support in Canada for many reasons Belief in democratic principles