THE DARKEST OF YEARS Brother Can You Spare a Dime THE DIRTY THIRTIES THE DARKEST OF YEARS Brother Can You Spare a Dime

LET’S GET SOME THINGS STRAIGHT Market Economy: an economic system in which individuals produce goods and prices are determined by supply and demand Mixed Economy: an economic system in which both individuals and government produce and sell goods What is CANADA?

Supply and Demand The quantity of a product that is available and the market’s desire for that product…. Huh?? Ms. Rogers REALLY wants a chocolate bar and so does everyone in her class. The problem is that there are only two chocolate bars left. There are 30 people vying for two chocolate bars. The DEMAND is HIGH and the SUPPLY is LOW. This means Ms. Rogers is going to have to pay A LOT for the chocolate bar… or risk losing it.

Alternatively There are 50 Spotlight Canada textbooks at STA. Ms. Rogers REALLY wants a copy of the Sportlight textbook so she can read it on the weekend and over her summer break. Turns out there aren’t many other people that want that. Ms. Rogers doesn’t have to pay for the textbook BECAUSE the SUPPLY is HIGH and the DEMAND is LOW.

Economic Cycle Market economics regularly go through cycles of growth and decline

THE STOCK MARKET CRASH (Oct 1929) In the late 1920’s the economy was booming. People were wealthy and there were many jobs for everyone. Homelessness was down in Canada. Most people from the middle and upper classes were purchasing stocks at an alarming rate and making money on their investment. In Oct 1929 the New York Stock Exchange collapsed. Prices of stocks fell very quickly and thus the stock owners wanted to sell all they had. More than 23 million shares changed hands in one day.

ECONOMIC TRAGEDY Because stocks had been so profitable people had been getting loans from the bank, and paying for STOCKS ON MARGIN STOCKS ON MARGIN were stocks that were bought with only a 10% down payment. It was assumed that the rest of the cost would be covered with the profit from the stocks. BANKS WERE EVEN INVESTING money from peoples accounts in stocks without the owner’s knowledge. BECAUSE STOCKS LOST THEIR VALUE OVERNIGHT the people who had heavily invested WENT BANKRUPT OVERNIGHT.

Farmers who produced goods were noticing that people in their own countries were buying less. THE FARMERS WERE OVER PRODUCING PRODUCTS. Factories were also over producing. When companies realized this, they fired some of their workers to save money. The U.S also imposed TARIFFS on foreign goods coming into the country. In turn many other countries followed suit- attempting to get people to buy from their own countries. THIS IS CALLED PROTECTIONISM. GERMANY could not pay its war debt from the TREATY OF VERSAILLES. THE ALLIES STARTED RELYING ON THIS REPAYMENT to pay their own loans.

CANADA’S DEPENDENCE ON EXPORT The Great Depression exposed a major weakness in the Canadian economy; its heavy dependence on the export of PRIMARY resources. WHEAT EXPORTS WERE VERY IMPORTANT TO CANADA: WHEAT from the PRAIRIES Newsprint from B.C, ONTARIO, and QUEBEC Canada supplied 40% of the world demand for wheat and 65% of the world demand for newsprint AS INTERNATIONAL MARKETS stopped investing in foreign products people in Canada who worked in these industries lost their jobs. WITHOUT JOBS they couldn’t afford to buy other products like radios, telephones, or cars. WITHOUT CUSTOMERS people in these industries also lost their jobs. WITHIN A YEAR MILLIONS OF CANADIANS LOSE THEIR JOBS

REASONS FOR DEPRESSION STOCK MARKET CRASH buying on margin->buying shares with 10% down and using stock profits to repay loans Loans very easy to obtain Stock prices over inflated October 29, 1929 New York Stock Exchange collapsed and others followed Investors bankrupt in a day

REASONS FOR DEPRESSION PRICE OF WHEAT FALLS 1927 price of wheat plummets globally Farmers unable to pay mortgages and loans Leads to decrease in production, economy slows, layoffs occur US tariffs (taxes on imported goods) and protectionism slows trade Canada dependent on export of primary resources (wheat prairies, newsprint BC, Ontario, Quebec)

The Stock Market Crash Tuesday October 29, 1929

REASONS FOR DEPRESSION REPARATION PAYMENTS Germany burdened with reparation payments France and Britain have major loans to United States (money to rebuild after WWI)

REASONS FOR DEPRESSION DROUGHT 1928 – 1936 Wind blew topsoil away – constant dust storms Grasshopper infestation No irrigation systems and reservoirs

EFFECTS OF DEPRESSION MIDDLE CLASS WIPED OUT Canadians lost their jobs, homes, farms, businesses, high suicide rate Pogey, relief, dole, welfare, vouchers, soup kitchens Reliance on charities and gov’t aid not enough

EFFECTS OF DEPRESSION ANGER AND DESPAIR 1933 – ¼ of Canadians unemployed Young, homeless, jobless men drifting, hopping trains (riding the rods), looking for work Arrested for vagrancy for not having addresses Shanty towns (jungles)

EFFECTS OF DEPRESSION DISADVANTAGED HURT EVEN MORE Fewer jobs for women (domestic service) Aboriginal families expected to ‘live off land’ so received less relief Chinese population: starvation not uncommon Immigrants viewed with hostility as seen as threats to jobs Jewish anti-Semitism (no Jews allowed signs)

POLITICAL RESPONSE TO DEPRESSION William Lyon Mackenzie King – Prime Minister at start of Depression Would not give “a five-cent piece” to help a Tory (Conservative) provincial government Not in favour of relief

POLITICAL RESPONSE TO DEPRESSION 1930 King lost to Conservative R.B. Bennett Not in favour of relief Raised tariffs (failed) Gave money to provinces (failed) Feared communism Created work camps Hated by many Canadians (was a millionaire) Ousted in 1935 by King

SOCIAL RESPONSE TO DEPRESSION (WORK CAMPS AND PROTEST) Horrible conditions in work camps for 20 cents a day 170,000 men in camps

SOCIAL RESPONSE TO DEPRESSION (WORK CAMPS AND PROTEST) 1935 – 1000 men left BC to protest (On-To-Ottawa Trek) Stopped in Regina; leaders went on to meet RB Bennett When RCMP cleared out trekkers, 1 man killed, many injuries, 130 arrested

PROTEST POLITICS 1932: creation of Cooperative Commonwealth Federation (CCF) JS Woodsworth leader Became popular as socialist and its Regina Manifesto platform wanted more power in public’s hands

PROTEST POLITICS 1935: Social Credit Party won in Alberta William (Bible Bill) Aberhart leader Capitalism is a wasteful economic system Prairie protest party

FEDERAL/PROVINCIAL TENSIONS Rowell-Sirois Commission 1937 Recommended federal gov’t have more taxation power Federal gov’t give poorer provinces grants called equalization payments King acts on two of Rowell-Sirois Commission recommendations. Creation of national Unemployment Insurance program 1940 Family Allowance 1944

THE END AT SUCH A COST Workers find jobs as country gears up for war Men enlist for service, decreasing unemployment World War II is on its way…