BELLWORK: Block 2 (208-11) Explain the political divisions in Canada post-WWI. What new political parties emerged in Canada in the 1920’s? How did WWI effect Canada’s economy? List three reasons why the Canadian economy “boomed” in the 1920’s. List three reasons the Canadian “boom” ended. THINKER: In your opinion, why was there no panic at the Toronto Stock Exchange on the same scale as the New York Stock Exchange?

Signs of an “unsound economy” There were six factors that led to the eventual Depression in Canada. These signs of an “unsound economy” include: Overproduction Reliance on Exporting Staple Products Canada’s Dependence on the U.S. Stock Market Crash International Debt post-WWI Economic Protectionism and Tariffs Today, you will be broken into groups and must create a skit based on one of the factors of the unsound economy. The skit needs to clearly present the topic and explain why that factor was such a problem.

Discussion With regards to the economic “boom,” unsound economy and stock market crash, what do Canada and the U.S. have in common? Try and get three things!

NO BELLWORK 9/24 Read about the immediate effects of the Great Depression in Canada: pgs. 211-215 Take notes on the Economic impact Social impact Political impact

How do Canadian elections work? https://www.youtube.com/watch?v=erP9-gjRoTY Start at :22 https://www.youtube.com/watch?v=u9kuF4LP_I8 Stop at 4:25 Did you know…. The Canadian PM is NOT elected by the people?? They’re chosen by whichever party has the most seats in Parliament. People only vote directly for members of Parliament (MP)

Statistics of the GD in Canada Every trade saw wages drop between 1930 and 1936 Saskatchewan (farm): 90% Unemployment reached 27% at the height of the Depression in 1933. Newfoundland (fish): 50% Corporate profits went from $396 million in 1929 to $98 million in 1933. Between 1929 and 1933 the GNP dropped 43%. Relied on trade, but imports 25% and exports 55% Farmers hit hardest: Wheat 75% 20% of Canadians were on relief 27% unemployment

Canadian Prime Ministers during the Great Depression William Lyon Mackenzie King Richard Bedford (R.B.) Bennett

W.L. MacKenzie King Prime Minister (Liberal Party) of Canada from 1921 to 1930. Struggled to work with the Progressive Party and his own Liberal Party, especially on the issue of tariffs Unrest among farmers in the Prairies as farm prices declined  no direct aide He also faced growing dissent from WWI veterans who expected their sacrifices to be compensated during difficult economic times.

Drought, Dust and Famine in the Prairies

Homeless Canadian family in Western Canada during the heart of the Depression 11

Politics in1930 King approached the early stages of the depression cautiously and hid behind the British North America Act. Believed it was up to the provinces to handle relief He felt that was what Canadians wanted, but in 1930 they proved him wrong….. R.B. Bennett, leader of the Conservative party, won the majority of Parliament on promises of action and direct relief Bennett and Mackenzie King at the centennial celebration of Toronto; 1934

Politics in1930 "I propose that any government of which I am the head will at the first session of parliament initiate whatever action is necessary to that end, or perish in the attempt." - Richard Bennett, June 9, 1930. "The truth is I feel I do not much care, the load is heavy & I would gladly do literary work for a while. I shall be glad to throw on to Bennett's shoulders the formation of a govt. & finding a solution for unemployment & other problems." Mackenzie King’s Diary, July 29, 1930

Government Response to the Great Depression Two rival parties and their solutions for the GD To learn more about each Prime Minister and their responses to the Depression, you and a partner will read and complete the graphic organizer on your note sheet

King’s Response to the Depression MacKenzie King thought that it was the responsibility of the provinces to aid their own citizens. He wasn’t prepared for the depression (not many political leaders were) and so he didn’t take an interventionist approach to the economy. King was eventually openly criticized for his controversial comment that he wouldn’t give “a five cent piece” of relief money to any province that had a Conservative Government He won’t give “a five cent piece” 15

Enter “Bonfire” Bennett R.B. Bennett was Leader of the Conservative Party of Canada He had the nickname “bonfire” because of his bombastic (loud) speaking style. On July 28th, 1930 R.B. Bennett became Prime Minister of Canada. Originally from New Brunswick, grew up to be a self-made millionaire as a corporate lawyer and businessman in Calgary. Given his “rags to riches” humble beginnings, he believed in capitalism and the free-enterprise system (i.e. leave economy alone and everything will work out in the end) Prime Minister R.B. Bennett 16

Bennett’s Response to the Great Depression Bennett tried to combat the depression by increasing trade within the British Empire and imposing tariffs for imports from outside the Empire. Known as the Imperial Preference Policy Conservative pro-business policies provided little relief for the unemployed

Bennett’s Response to the Depression He put $ 20 Million dollars towards emergency relief He raised the tariffs on imports to 50% in order to protect Canada’s industries from foreign competition and end the trade deficit. (Do you think this would work?) “Bonfire” Bennett 18

Blaming it on Bennett

Bennett’s Failures No Unemployment Insurance Prime Minister Bennett blamed for inability to end Depression Bennett Buggies – Cars pulled by horses Bennettburoughs – homeless communities Bennett blankets - newspapers

Establishment of Relief Camps To spur employment, Bennett created relief camps in rural areas for men to live/work Conditions in the camps were repulsive, not only because of the low pay, but the lack of recreational facilities, isolation from family and friends, poor quality food, and the use of military discipline. Communist Party leaders saw a chance to organize strikes in the camps. Forming the Relief Camp Worker’s Union

Bennett’s New Deal January 1935, Bennett announces in a radio address “I am for reform” and launches his own New Deal. The plan called for federal government intervention: > minimum wage, maximum work week laws, > unemployment insurance > retirement pensions, health insurance > mortgage assistance for farmers Most of the New Deal was seen by the Supreme Court of Canada as an encroachment on the authority of provincial governments and struck down as violation of Section 92 of the British North America Act (Canada's Constitution) Bennett’s reform effort was seen as too little, too late by voters who elected McKenzie King in October 1935

The Return of King In 1935, the Canadian people had enough of Bennett who they blamed for prolonging the Depression. Running under the slogan “King or Chaos”, King won the election. Bennett ended his final days in Great Britain and remains the only Canadian Prime Minister to be buried outside of Canada. He’s Back Again…… 23

MacKenzie King Returns Introduces relief programs: > National Housing Act > National Employment Commission Nationalizes: > Canadian Broadcast Corporation 1936 > Trans-Canada Airlines (Air-Canada) 1937 > Bank of Canada 1938 From 1939, an increased demand in Europe for materials, and increased spending by the Canadian government on public works created a boost to the economy. Unemployment declined as men enlisted in the military. By 1939, Canada was experiencing economic prosperity for the first time in a decade.

Discussion Similarities/differences between King and Bennett