Political Responses to the Crisis New Roles for the State

The Great Depression shook the confidence that people had previously had in capitalism and free enterprise. Capitalism advocates a system of private ownership of production with free enterprise. Free enterprise: The freedom of private businesses to operate competitively for profit with minimal government control.

Some people argued that capitalism did not respect the rights of ordinary citizens. People believed that liberalist policies, private property and minimum government interference were responsible for the Great Depression.

Responses from other countries

Communism In the USSR communism was imposed in All the land and property was seized by the government. The Communist Party acted as a dictatorship that Planned the economy, controlling all resources as well as production, distribution and sales. It dealt severely with any opposition.

Socialism In Western Europe socialism appealed to many. Socialists believe the state should intervene in the economy. Key industries and the banks should be nationalised (owned and controlled by the state). The government should provide more services to help people in need.

Fascism Italy and Spain tried Fascism. Small right wing Fascist parties formed dictatorships under their leaders: Benito Mussolini in Italy and Francisco Franco in Spain. Fascists used nationalist propaganda and force to control the people.

Nazism Germany got caught up in Nazism, a brand of fascism. The Nazi’s (National Socialist Party) were led by Adolf Hitler who quickly became a dictator after gaining power in The Nazi rulers intervened in the economy. The armed forces were built up. Nazi propaganda, fast economic improvements and plenty of jobs

Impressed a population which had suffered greatly since WW1

New Deal The New Deal policy was proposed in the United States by Franklin Delano Roosevelt who was elected president in He believed that the federal government should intervene to get the economy going again. They launched many successful economic and social projects paid for by the government.

Canadian Response In Canada some people were tired of the old political parties and the solutions they offer. Two new Federal parties were born 1)The Cooperative Commonwealth Federation. Its platforms were based on socialist ideas. They wanted to nationalize banks, public utilities and natural resources. It promoted social security schemes like health care and unemployment insurance.

2) the Social Credit Party had right wing views. It wanted to control the banks and the supply of money. It wanted the government to provide interest free loans to help needy families.

Response in Quebec New political groups were formed in the 1930’s in Quebec. Nationalists in Quebec wanted to return to traditional values. They blamed current troubles on capitalists, monopolies and communists. This group wanted a return to traditional values: family, parish, rural life. The Catholic Church supported this movement.

Corporatists believed workers, employers professionals and the government should work together. Their views were mostly nationalistic and conservative.

Action Liberale National ALN was formed by Paul Gouin. He had broken away from the traditional liberal party. ALN wanted economic reforms.

Union National The UN was a coalition of the Conservative Party led by Maurice Duplessis and the ALN. It borrowed ideas from the ALN and proposed various social economic and political interventions by the state. The UN was elected in 1936 and Duplessis assumed powerful control of Quebec and introduced conservative policies that favoured nationalist values.

Parti National Social Chretien The Parti National Social Chretien was led by Adrian Arcand in Quebec. This party advocated the fascist ideas of Mussolini and Hitler. It was anti-semitic and it suggested that Jews be sent to live in Hudson Bay or be returned to Palestine. The party gained little support.

New Role of the State North America rejected radical changes proposed by communists and Fascists in Europe. Many people did believe that the government should intervene in the economy. Economist J.M. Keynes argued that the government should spend money during a recession. It could make grants, pay subsidies, public work projects, pay pensions and so on.

R.B. Bennett In Canada R.B. Bennett took several actions: Created the Bank of Canada to gain greater control of the money supply. The government invested in road building, railways and labour camps. Transfer of money from prosperous areas of the country to areas experiencing difficulties.

Child labour was banned The government introduced employment exchanges to help unemployed people find work. Farmers received aid. Higher duties were placed on imported shoes and textiles to help Canadian industries.

Quebec The Quebec government also took measures to help the battered economy: It established an 8 hour work day, work week and minimum wage. Helped the unemployed. passed a law on work related industries. Colonized new areas of land.