The Modernization of Quebec

Unit 6

The Government

Today the Government of Quebec plays a large part in the life of its citizens. Most people pay taxes to pay for many services provided by the government.

Welfare State

We are a welfare state. What does that mean?Definition: A social system whereby the state

assumes primary responsibility for the welfare of its citizens, as in matters of health care, education, employment, and social security.

The government is expected to care for the sick, unemployed, homeless, seniors, the needy and so on.

Big Government

There have been people who believed that the government was interfering too much in the lives of individuals. There are still those who would like the state to provide fewer services. They would prefer a return to individuals relying on themselves and private charitable groups to take care of social problems. They believe that big government makes projects more expensive and complicated. They want private enterprise.

Before the 1930’s

Before the 1930’s governments interfered in people’s lives as little as possible. They left healthcare, education and welfare activities to the Church and private charities. Due to major economic changes and a shift in values made it necessary for the government to engage more in regulating affairs and providing services to the population.

The Great Depression

The stock market crash of 1929 marked the onset of the Great Depression which lasted throughout the 1930’s. Many people bought shares hoping to sell them for a profit. Many borrowed money to be able to buy these shares.

Buy some shares!

One share in Coca Cola’s stock was $40. It's the equivalent of about $531 today.

Shares in stock: units of ownership in a company.

Stock prices rose to artificially high levels (prices). When investors panicked “Black Thursday” occurred on October 24th 1929. The important New York Stock Exchange crashed. Share prices tumbled. Stockholders lost billions of dollars in one day. Many were financially ruined and committed suicide.

The Crash

• http://www.youtube.com/watch?v=nyAZGqFtVjw

Other stock exchanges soon followed. Over 50 billion dollars was lost. The value of Chrysler shares fell from $135 each to $5.

Why did it happen?

The crash was the result of over productivity in factories using new technologies to produce too many goods. Wages did not increase enough to enable people to buy all that was being produced.

Effects on the Economy

People could not afford to repay loans. Others hesitated to invest in Banks. Savings were withdrawn so bank failures resulted. companies went bankrupt. Companies soon found that they were overproducing goods because few customers were buying. Factories had to be closed and workers laid off.

30% of the labour force was unemployed and receiving no wages, store sales dropped. Families bought as little as possible. This reduced the demand for goods even further. Te economy was in a very weak recession – The Great Depression

Some sectors were hit harder than others. Wheat farmers on the Prairies suffered a drop in the price of a bushel of wheat. Incomes fell 60% in Alberta and 72% in Saskatchewan. Drought, plant disease and a plague of grasshoppers added to farmers woes.

The Great Depression affected other industrialized countries. Foreign consumers had to reduce their imports to Canada. Canada’s exports were reduced by half. All of this resulted in lower wages and prices in Canada. There were huge increases in the number of unemployed workers. Governments took in less tax revenue so they had less to spend.

Soup Kitchens

Evictions

The Dust Bowl

Western CanadaIn Western Canada whole families had to leave their dustbowl farms and migrate. Men went searching for jobs in other regions. Hobos hopped on freight trains and slept in the open.

How did the Government help?

As the Great Depression continued through the 1930’s the governments had to provide help. They had 4 different approaches:1)Public works projects2)Work Camps3)Direct Aid4)Back to the land policies

Work bookTurn to page 111 in your blue books. Read about the 4 different approaches. Answer the three questions on page 111.