The Great Depression Causes of and Effects on Canadians

Video Clip As you watch the clip, write down what your impressions are from it, and any feelings that you may have. What do you think the clip is trying to convey What do you see as some causes of the Great Depression

Lead up to Depression Canada and the US were facing an issue of over-production because of the ability to mass produce. When factories had to cut down on the number of products it forced owners to lay off workers. The more people that were laid off the fewer the number of people could buy the products the factories made and so the cycle continued. (remember the business cycle?) The US and Canada were largely functioning under a Laissez-faire economic system: Laissez-faire is an economic system in which transactions between private parties are free from government restrictions, tariffs, and subsidies, with only enough regulations to protect property rights. The phrase literally means "let [them] do", but it broadly implies "let it be," "let them do as they will," or "leave it alone". This Laissez-faire system is meant to function using the law of supply and demand. This system depended on a lack of regulation and allowed investors to buy stock “on the Margin” which contributed to the outbreak of the Great Depression

Canada and the Depression The depression in Canada was made worse because of the problems American investment had created. Canada depended on American investment which suddenly halted when the stock market crashed on Black Tuesday October 29, 1929.

Black Tuesday

Desperate Years As people lost jobs, they lost homes and were evicted Loss of jobs also meant the loss of respect Thousands existed on “pogey” Pogey: Government relief payments given to those who had no alternative source of income People waited publicly in line for hours, facing humiliation Declare financial failure Prove that they were evicted and owned nothing of value

Depression Bottoms Out By 1933 the depression was at its worst. With 25% of the workforce unemployed the government is pressured to take immediate action. United States Great Britain France Germany Industrial production –46% –23% –24% –41% Wholesale prices –32% –33% –34% –29% Foreign trade –70% –60% –54% –61% Unemployment +607% +129% +214% +232%

Desperate Times Call for Desperate Measures Private charities helped those who were desperate, Provided clothing and meals Soup kitchen Montreal Soup Kitchen, 1931

The Dust Bowl Collapse of the wheat market Prairies were hit by a drought from 1928 that lasted almost eight years Palliser’s Triangle – semi arid area in S. Alberta and Saskatchewan worst hit Plague of grasshoppers, stalled trains, buses, clogged car radiators The Bennett government did intervene in the Canadian economy in a variety of ways to help ameliorate the problems caused by the Depression Government programs like the 1935: Prairie Farm Rehabilitation Administration Act – helped farmers build irrigation systems and reservoirs

The Women and Minorities The government set up a relief program for families in need however the monthly rate for a family of five varied from $60 in Calgary to $17 in Halifax Women had few jobs, other than domestic work Aboriginal families on relief got $5/month they were expected to hunt and/or fish to make up the difference. Family relief was cut off when your children turned 16 Immigrants were viewed with hostility when they competed for scarce jobs Jews were targeted, suffered from anti-Semitism The Chinese Immigration Act was passed in 1923 Known in the Chinese Canadian community as the Chinese Exclusion Act, it banned most forms of Chinese immigration to Canada. Immigration from most countries was controlled or restricted, but only the Chinese were so completely prohibited from immigrating. Prior to 1923, Chinese immigration was controlled by the Chinese Immigration Act of 1885, which imposed a hefty head tax on all immigrants from China. Prejudice against the Chinese was especially bad in BC

Responding to Depression Mackenzie King believed that it was municipal and provincial responsibility to provide financial help King lost election in 1930 replaced by R.B Bennett (Conservatives) who also thought the depression was not the responsibility of the government.

Bennett’s Response Pledged to “use tariffs to blast a way” into the world markets and out of Depression Raised tariffs by 50% to protect Canadian industries This is known as Protectionism It backfired as other countries used trade barriers against Canada

Work Relief Camps Located in woods, completely isolated Build roads, clear land, digging drainage ditches Paid 20 cents/day; Given room and board Food was terrible, bunks infested with bugs

Provincial Issues Many provincial governments went bankrupt during the depression and needed help being able to run their day to day affairs. Provincial parties were being quickly booted from office for also failing to stop the depression. Provinces were told by the federal government that they were responsible for finding work and dealing with unemployment. The provinces did not, however, have the necessary tools to handle this duty.

Video Montage http://www.youtube.com/watch?v=TCNKq0-9p3w

Provincial Solutions Provincial leaders attempted to put down strikes. In Quebec, Maurice Duplessis, brought the Union Nationale party to power in 1936. In an example of worsening French and English relations: Duplessis blamed Quebec’s social and economic problems on the English minority in Quebec.

Provincial Solutions (cont.) Duff Pattullo, Premier in BC, shortened the work day, increased the minimum wage, and increased work relief payments by 20 percent. “A Little New Deal” Mayors and the Premier in BC were resented less than Bennett, but were still blamed for being ineffective in the fight to slow the depression. The reactions of the provincial governments varied depending on which province you were in

Increased Regional Tension King created Rowell-Sirois Commission to examine federal-provincial relations Recommended that federal government grant equalization payments. “In Canada, the federal government makes equalization payments to less wealthy Canadian provinces to equalize the provinces' "fiscal capacity" — their ability to generate tax revenues. A province that does not receive equalization payments is referred to as a "have province", while one that does is a "have not province". Until the 2009–10 fiscal year, Ontario was the only province to have never received equalization payments; while Newfoundland and Labrador, which has received payments since the program's creation, is now a so-called "have" province, and does not receive them.” Canada's territories are not included in the equalization program. Wealthier provinces were angered, may thought it would be loss of provincial power However, the economy had already made a turn around

Responding to the Depression: The creation of new political parties Economic upheaval often leads to social unrest and political opposition, thus the Great Depression created an environment that encouraged the development of new political parties. 1. Communist Party active: but banned in 1931, its leaders jailed (instrumental in the On-to-Ottawa trek) 2. The Co-operative Commonwealth Federation (CCF): formed 1932 (later this party will dissolve and reform as the NDP) The Regina Manifesto: “No C.C.F. Government will rest content until it has eradicated Capitalism . . .” Socialist Leader: J.S. Woodsworth

Social Unrest: Political Opposition 3. Social Credit “Bible Bill” William Aberhart and John Horne Blackmore found the Social Credit party originally in Alberta in 1935. The Gov’t to give citizens money to make up deficit in purchasing power Elected in 1935: Alberta 4. Fascist movements gain some support

Canadian Communist Party The Canadian Communist party was never very large or politically important as a federal or provincial party However the leaders were heavily involved in the On to Ottawa Trek and Communism made the government very uncomfortable With the onset of the Great Depression, the Conservative government of R. B. Bennett became increasingly worried about left-wing political parties. In 1931, the Communist Party offices in Toronto were raided, and Tim Buck (the head of Canada’s Communist party) and several of his colleagues were arrested and charged with sedition. Buck was tried in November, convicted of sedition and sentenced to hard labour.

It wasn’t all bad… Entertainment: movies, magazines, romance Canadians audiences preferred US shows, federal government created a public radio service which became the Canadian Broadcasting Corporation (CBC) Grey Owl; conservationist Devoted latter part of his life to the preservation of northern Canadian forests and disappearing beaver

Grey Owl – The Conservationist

Dionne Quintuplets The Dionne Quintuplets (born 1934) are the first quintuplets known to survive their infancy. The sisters were born in Ontario, near the village of Corbeil. The Dionne girls were born two months premature. After four months with their family, they were made wards of the King for the next nine years under the Dionne Quintuplets' Guardianship Act, 1935. The government and those around them began to profit by making them a significant tourist attraction in Ontario.

Ontario Premier Mitchell Hepburn with the Dionne babies ca. 1934

Canadians saving lives: The discovery of insulin Sir Frederick Banting was a Canadian medical scientist, and doctor he is most known as the primary discoverer of insulin. In 1923 Banting and John James Rickard Macleod received the Nobel Prize in Medicine. Banting shared the award money with his colleague, Dr. Charles Best. The Canadian government gave him a lifetime annuity to work on his research. In 1934 he was knighted by King George V. Banting (right) with Charles H. Best, ca. 1924