The 1930s in Canada & Treating a `Sick` Economy Government Action and Inaction during the Great Depression

Symptoms Few prepared for the severity or duration of the economic slump 1/3 Canadians out of work by /3 underemployed or forced to “tighten belts” Malnutrition, starvation, etc Men turned to roaming for work Dependence on meagre amounts of relief for survival

Regional Effects: The Great Depression was a worldwide condition, but each country was affected in its own way. Canada: – Overall: National income down 40% from – Central Canada: international competitors & small businesses destroyed – Maritimes: no market for fish or coal (only real industries) – West & Prairies: hit particularly hard Dependence on wheat (price at an all-time low) Drought & dustbowl Grasshoppers

Stage 1: Denial PM William Lyon Mackenzie King believed the economy/business would correct itself soon He was reluctant to commit $ to relief (welfare) Thought Gov`t should stay out of the economy Made relief a provincial/municipal matter Suggested poor should turn to local charities (already overwhelmed) Stated he wouldn`t give a “5 cent piece” to provinces with non-Liberal Premiers King was voted out in 1930

W.L.M. King R.B. Bennett

Stage 2: Band-Aid for a Heart Attack PM R.B. Bennett (millionaire/businessman/Conservative) replaced King Bennett also felt gov`t should not regulate the economy/business Raised tariffs to promote Can. Products (actually strangled trade) Gave some $ in relief, but not very much Bennett also felt the Depression could be “waited out”

“Bennett Buggy”

“Bennett Borough”

Stage 3: Blame the Patient King & Bennett both acted as if the unemployed were the problem Tried to blame them for the situation: lazy, shiftless, unwilling to work Gov`t kept relief payments intentionally low to “promote work” (not enough to live on) For much of the GD, Gov`t refused to acknowledge that there wasn`t work to do

Stage 4: Quarantine Read P Relief Camps What were they? Emergency financial assistance given to some of the employed to keep them from starving Why did Bennett create them? 1932 Bennett set up relief camps for single unmarried men (18 years of age and older having to work 8 hours a day cutting brush, moving rocks and building roads) Wage was 20cents/day Main purpose was to provide drifters and unemployed men with useful work Result? Men became FED UP with their way of life boarded a freight train bound for OTTAWA to PROTEST. They were stopped in REGINA. This resulted in the REGINA RIOT. Nothing came out of this riot.

On-to-Ottawa Trek What was it? Who was involved? What did they want? How did it end? Results?

Stage 5: Change Doctors Bennett is blamed for the 5 worst years of the Depression (Bennett Buggy, Bennett Blanket, etc.) 1935, King is re-elected by blaming Bennett (“King or Chaos” campaign slogan) King mimicked Roosevelt’s “New Deal” Massive public works (roads, bridges, buildings, etc.) Govt resources to keep population working Large-scale relief Started Gov`t regulation of business & wages King still wanted to avoid too much Gov`t action, but also wanted to stay PM

Stage 6: An Uncertain Cure King`s reforms created many jobs, but the economy was still lagging By 1939 there were some signs of recovery, but not many The Great Depression ended with the beginning of WWII Gov`ts that had hesitated to spend money on relief, rushed to spend it on tanks, planes etc. All this business revived Canada`s economy and turned it, once again, into a roaring engine