Canada in the Interwar Years Canada in the Thirties: Responses to the Great Depression

Responses to the Depression Some attempts to respond to the depression (increased tariffs and cost-cutting) only made the problems worse. Tariffs are taxes (duties) on imported goods. Part of the problem was that the stable democratic governments were not willing to make any radical change to fix the problem.

Responses to the Depression The United States –US were impacted the most by the Great Depression –President Hoover refused to introduce relief measures. –Hoover had little support from the American population

Responses to the Depression The US –Leading up to the next election, Franklin Roosevelt introduced the New Deal –Roosevelt promised to put this into action within 100 days, if he was elected –The new deal was a set of relief programs, which were to put Americans back to work

1. Keynesian Economics - US –John Meynard Keynes, British economist who proposed that governments should spend more money to get out of the depression, instead of cutting costs. –With less money circulating, the economy and depression was getting worse every day.

1. Keynesian Economics - US John Meynard Keynes –He wanted governments to borrow money –This money was to be used on huge employment projects and were to be repaid once the economy recovered –This was called deficit financing

1. Keynesian Economics - US Employment projects – to improve and modernize the infrastructure of the USA This included building roads, bridges, dams, etc. Bonneville Dam on Columbia River

1. Keynesian Economics - US Most countries ignored Keynes’ radical new ideas Countries that did accept Keynes’ ideas were Hitler’s Germany, Japan, and USA Roosevelt called Keynes’ a fool, but his New Deal was just like Keynes’ idea

Canada’s Attempts

Responses to the Depression Canada –As unemployment worsened in Canada individuals dealt with the problem in different ways Sold products door-to-door Panhandled (ask/beg for money) Asked churches and charities for money/clothes As a last resort people collected public relief (called the ‘dole’ or ‘pogey’) which came in the form of vouchers that could be exchanged for goods

2. ‘Riding the Rails’ –“Riding the Rails” referred to hitching a ride on freight trains by trying to ride on top of cars, inside cars (if they could get in), or on top of timber or other products –Initially people rode to find employment in different cities, but none was to be found

2. ‘Riding the Rails’

–Single, unemployed people began riding back and forth across the country because they had nothing else to do –Police tried to control the situation by catching and putting individuals into jail, but this had no impact in reducing the number of people riding the rails.

3. ‘Pogey’ and ‘The Dole’ –Similar to our modern day welfare system –People who qualified were provided vouchers that could be exchanged for food or other essential items –Was kept lower so people would not want to be on it – People ended up starving and suffering from disease because ‘pogey’ was not sufficient

3. ‘Pogey’ and ‘the Dole’- Results Brought in too late to be of much help Too many restrictions placed upon it Still, the Dole did somewhat help out those who actually received it

4. Unemployment Relief Camps –No government was prepared to deal with the economic collapse –Federal and provincial governments gave municipalities the responsibility of providing relief (assistance)

4. Unemployment Relief Camps PM king refused to deal with the Depression When provincial governments asked for federal assistance, PM King said that he would not give them a “five-cent piece” As a result, King was defeated in the 1930 election by R.B. Bennet

4. Unemployment Relief Camps –New PM Bennett set up Unemployment Relief Camps for single, unemployed men –At these camps men laboured on public work projects (example building roads) for 20 cents per day, plus room and board

Unemployment Relief Camps

4. Unemployment Relief Camps –Bennett also set high tariffs to protect Canadian industries –He thought other countries would lower their tariffs since they would need Canada’s staple products –By 1935 only Britain had lowered its tariffs

5. Bennett’s New Deal –In response to the effects of the Great Depression, PM Bennett introduced a Canadian version of Roosevelt’s ‘new deal’

5. Bennett’s New Deal –Bennett’s version called for Progressive Taxation (more you make, more you pay) A maximum number of hours in a work week Introduction of minimum wage Stronger regulation of working conditions Unemployment Insurance Health/accident insurance Changed old age pension plan Agricultural support Marketing board to regulate wheat prices

5. Bennett’s New Deal –Introduced as a result of Depression, and still makes up most of Canada’s modern ‘safety net’ –Before the Depression none of these provisions existed –Most people thought Bennett responded too late, and his New Deal did little to help the unemployment problem –Not many Canadians supported Bennett

6. On-to-Ottawa Trek and the Regina Riot –Relief camps were not enough to address the major financial crises caused by the Depression –June 1935, angered relief camp workers boarded a train in Vancouver bound for Ottawa, which became known as the On-to- Ottawa Trek

6. On-to-Ottawa Trek and the Regina Riot The protest gathered strength as it crossed the country Workers wanted ‘work with wages’ or ‘real jobs’ In Regina, they were stopped by the RCMP A riot broke out, called the Regina Riot.

The Regina Riot

6. On-to-Ottawa Trek and the Regina Riot –Regina Riot 300 RCMP were ready in riot gear 50 RCMP were ready on horses nearby Using baseball bats, Billy clubs, and tear gas, the RCMP fought the crowd for over 3 hours. Dozens of ‘trekkers’ were injured and one RCMP officer was beaten to death One striker met with PM Bennett, but with no success As a result people began to turn on Bennett and Mackenzie King won the October, 1935 election

Regina Riot

7. Diversion –In 1934 five babies (quintuplets) were born in North Bay, Ontario - the Dionne Quintuplets –These children were the first set of quintuplets to live more than a few days –Soon after they were born, the Ontario government decided the parents were not fit to look after the children, and took control of the welfare of the babies.

Dionne Quintuplets

7. Diversion –Quints were raised by a special team of doctors and nurses, and tourists would pay to watch the Quints play. –Estimated that the Quints generated over $500 million for the tourism industry –After a 9 year legal battle, Quints were returned to their family

Dionne Quints

Consequences of the Great Depression 1. Unemployment –The unemployment rate was around 25% in industrialized countries –This was all before countries set up ‘safety nets’, like employment insurance and welfare payments –Effects of unemployment were much more severe then they would be today

Consequences of the Great Depression 1. Unemployment –Those workers who were laid off, relied on support from their family –The rest of their family often had a similar situation already –As time went on, the Depression became worse and worse

Consequences of the Great Depression 2. Banking Failures –As businesses and farms, who owed money to banks, went bankrupt, so did the banks. –People who had deposits in these banks often lost their life savings. –In the US over 6,000 banks went bankrupt. –Canadian banks were much more conservative and, for the most part, survived the Depression

Consequences of the Great Depression 3. Political Consequences –In some countries, like the US, the political systems were severely tested by the effects of the Great Depression –Americans began to doubt the ‘American Dream’ The idea that all people can find success through hard work

Consequences of the Great Depression 3. Political Consequences –In countries like Germany, the political system did not survive the Great Depression –In Canada, the most dramatic political response to the Great Depression, was the formation of new political parties The Canadian Co-operative Federation (later NDP) Social Credit Party

Consequences of the Great Depression 4. The Changing Role of Government –At the start of the Depression, governments responded by cutting back on government spending. –As Depression became worse, some governments realized that they would have to take on more active roles in caring for the poor. Unemployment insurance, sick benefits, child benefits, welfare etc. all of these originated during the Depression

Consequences of the Great Depression 4. The Changing Role of Government –Ever since the Great Depression, national economies have been closely controlled by elected governments –This became a major responsibility of the government

Consequences of the Great Depression 4. The Changing Role of Government –Since the Great Depression, we now expect governments to manage economy through Tax policy (increase and decrease taxes) Monetary policy (raising and lowering interest rates) Fiscal policy (increase and decrease government expenditures) Control of the value of national currency

Protest Parties Protest movements in Canada were concerned with the economic problems of farmers and workers. Farmers/workers had tactics to bring their issues to the attention of the Canadian government Eventually protest parties were formed and won office in Ontario, Alberta and Manitoba

Protest Parties The Great Depression, with the all the unemployment and economic collapse, sparked many protest movements and protest parties Some parties were radical in nature The Co-operative Commonwealth Federation was founded to give political direction to many of these movements

Co-operative Commonwealth Federation CCF was a political party founded in 1932 in Calgary, Alberta, by a number of socialist, farm, co- operative and labour groups. The CCF aimed to make the suffering of the Great Depression easier through economic reform and public "co-operation” of different regions

Co-operative Commonwealth Federation In 1944, it became the first socialist government in North America was replaced by the New Democratic Party A co-operative is a business organization owned and operated by a group of individuals for their mutual benefit

Regina Manifesto The CCF adopted the Regina Manifesto as the party's platform The manifesto outlined a number of goals including: –Public ownership of key industries –Universal pensions –Universal health care –Children's allowances –Unemployment insurance –Workers compensation

Regina Manifesto The main goal of the Regina Manifesto was to remove the Canadian system of capitalism and replace it with socialism It was the platform for the first Socialist party in Canada

Union Nationale A political party in Quebec that wanted Quebec to have more control over themselves as a province (autonomy) It was created during the Great Depression and held power in Quebec from 1936 to 1939, and from 1944 to 1960

Union Nationale The Padlock Law was an Act in Quebec Union Nationale government passed the act in 1937 –was intended to prevent the spread of communist propaganda. –Anyone found with communism propoganda was sent to jail and their communist belongings locked away (‘padlocked’)

The Indian Act This act turned Aboriginals into legal wards of the state. –ward - a person who is under the protection of another

Indian Act The Act also spelled out conditions for being an Indian under the eyes of the law –Any woman that married an Aboriginal man could be considered an Indian and could be allowed to live on a reserve –Any Aboriginal woman who married a white male, was now considered to be a member of Canadian society. She lost her Indian status and every right that came with it. –All "half-breed" Indians, like the Métis, were not entitled to Indian status

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