1. The Great Depression 1929-1939

2. The Boom During the 1920s, many were buying stocks “on the margin”… in other words, paying by credit. During the 1920s, many were buying stocks “on the margin”… in other words, paying by credit. They expected to pay off debts as economy kept booming. They expected to pay off debts as economy kept booming.

3. President Hoover’s Speech "We in America today are nearer to the final triumph over poverty than ever before in the history of this land... We shall soon with the help of God be in sight of the day when poverty will be banished from this land." "We in America today are nearer to the final triumph over poverty than ever before in the history of this land... We shall soon with the help of God be in sight of the day when poverty will be banished from this land." Herbert Hoover in his acceptance speech Herbert Hoover in his acceptance speech June, 1928

4. The Bust Instead, the economy worsened. They lost their jobs. Instead, the economy worsened. They lost their jobs. On Black Tuesday, (Oct. 29, 1929), the Stock Market crashed. On Black Tuesday, (Oct. 29, 1929), the Stock Market crashed.

5. The Stock Market Crash! People invested in the stock market and bought shares in companies. If you buy stocks, you can make money selling them. The price that stocks are bought and sold for depends on how much money the company makes... If profits are up, the stocks are worth more! However, October 24, 1929 prices began to slip and thousands of shares were not purchased because there were no buyers. When the news hit the papers, people panicked and began selling their shares to get their money back.

6. Black Tuesday Oct. 29, 1929  October 29, 1929 the stock markets in New York, Toronto and Montreal CRASHED!  Within days, shares were worthless. The economic downturn (recession) turned into a worldwide DEPRESSION.  The stock market crash triggered the Great Depression of the 1930’s. The Canadian government thought the economy would correct itself, but it would only get worse....

8. CAUSES OF THE GREAT DEPRESSION

9. High Tariffs = Taxes  To make money, countries would charge a tariff or tax on items being imported from other countries.  Canada’s economy was based upon selling our natural resources Eg: Lumber, paper pulp, grains, fish and minerals  During the Great Depression, Canada couldn’t sell their natural resources because other countries couldn't afford to buy them.  This slowed down trade between countries and many companies went bankrupt.

10. Overstocked  Manufacturing businesses fared no better.  Companies had been overproducing and couldn’t sell their inventory.  Nobody could afford to buy clothing, new cars and appliances.  With warehouses full of stock, companies didn’t make any more.  Factories closed down and workers were laid off until the product could be sold.  Companies were forced to lower prices to sell goods. This caused Deflation

11. Canada’s Economy in the 1920s Canada was reliant on the U.S.A. to buy their products. Canada was reliant on the U.S.A. to buy their products. Two areas hit worst are pulp (BC, Ont. & Que.) and wheat (Prairies). Two areas hit worst are pulp (BC, Ont. & Que.) and wheat (Prairies).

12. Desperate Years Homeless are treated like criminals. Homeless are treated like criminals. Thousands collect “pogey” = Welfare Thousands collect “pogey” = Welfare Many rely on food stamps, bread lines. Many rely on food stamps, bread lines.

14. Vagrants ¼ of work force is unemployed. ¼ of work force is unemployed. They begin riding the rails: hopping trains to find work. They begin riding the rails: hopping trains to find work. They live in Shantytowns They live in Shantytowns

18. A favela, or shantytown, in Brazil

20. Government Response King believed in laissez-faire… thought the economy would recover in its own time. King believed in laissez-faire… thought the economy would recover in its own time. He was booted from office in 1930. He was booted from office in 1930.

21. Government Response RB Bennett also didn’t believe in government relief. RB Bennett also didn’t believe in government relief. Bennett wants high import tariffs Bennett wants high import tariffs Wants also to make sure that everyone else’s tariffs are low so that we can make money on our exports Wants also to make sure that everyone else’s tariffs are low so that we can make money on our exports However, due to public pressure, he created “make work” programs. However, due to public pressure, he created “make work” programs.

23. Hoover Dam (USA) Hoover Dam (USA)

25. Government Response The economy didn’t improve. The economy didn’t improve. WHY? WHY? Make-work jobs paid too little and separated men from their families and society, where they could spend the money to re-boost the economy. Make-work jobs paid too little and separated men from their families and society, where they could spend the money to re-boost the economy. Bennett’s new liberal ideas to help boost economy came about too little too late… Election ploy? Bennett’s new liberal ideas to help boost economy came about too little too late… Election ploy?

26. Racism As A Solution Many blamed Blacks for causing the Great Depression. Many blamed Blacks for causing the Great Depression. In the United States and Canada, the KKK became extremely popular (20% of whites had joined at peak membership period). In the United States and Canada, the KKK became extremely popular (20% of whites had joined at peak membership period).

27. Racism As A Solution Lynching was one way of dealing with blacks. Lynching was one way of dealing with blacks.

28. People proudly took pictures of the blacks they had hung and burned. People proudly took pictures of the blacks they had hung and burned. Lynching

29. Protest People became so angry, they began a strike and planned to “ride the rails” to Ottawa to confront Prime Minister Bennett. They were upset about:  The jobs assigned were pointless  The military style of the camps  Camps were overcrowded with poor conditions In Canada, workers leave BC work camps paying 20 cents/day to march towards Ottawa in the “On-to- Ottawa” trek. In Canada, workers leave BC work camps paying 20 cents/day to march towards Ottawa in the “On-to- Ottawa” trek. They ride on rail cars to get there. They ride on rail cars to get there.

30. Hoboes Hopping Freight Trains

31. Bennett’s Response Bennett still believes that the government must let laissez-faire rule. Bennett still believes that the government must let laissez-faire rule. He orders police to arrest the protesters. He orders police to arrest the protesters. One is killed. One is killed. SLIM EVANS

32. Forming the CCF In 1932, western leaders formed the Cooperative Commonwealth Federation (CCF), under JS Woodsworth. In 1932, western leaders formed the Cooperative Commonwealth Federation (CCF), under JS Woodsworth.

33. Other New Political Parties Social Credit Party (led by William Aberhart) wins 1935 Alberta Election under the belief that capitalism was a wasteful system. Social Credit Party (led by William Aberhart) wins 1935 Alberta Election under the belief that capitalism was a wasteful system. Aberhart wanted government to give citizens a “basic dividend” to spend as they pleased. Aberhart wanted government to give citizens a “basic dividend” to spend as they pleased. Remains in power until 1971. Remains in power until 1971.

34. Other New Political Parties In Quebec, Maurice Duplessis forms the Union Nationale, a French Catholic party. In Quebec, Maurice Duplessis forms the Union Nationale, a French Catholic party. He blames the English of Quebec for their problems. He blames the English of Quebec for their problems. Stays in power until 1959, although he does little to change things. Stays in power until 1959, although he does little to change things.

35. Natural Disasters! – Dust Bowl Meanwhile farmers face huge drought. Meanwhile farmers face huge drought.  Lack of rain, high temperatures and wind caused dustbowls in Western Canada.  Farmers went bankrupt because their crops dried up. Drought!

36. Grasshoppers....ewww  Grasshoppers hatched by the millions in the prairies.  They thrive in dry conditions and farmers could see black clouds of the insects in the sky.  Grasshoppers destroyed over 80% of the left over crops in the 1930’s.

37. Citizens Re-Elect King Why Not? Why Not? King was highly eccentric with his preference for communing with spirits, including those of Leonardo da Vinci, Sir Wilfrid Laurier, his dead mother, and several of his Irish Terrier dogs, all named Pat. He also claimed to commune with the spirit of Franklin Delano Roosevelt, American president and close friend.[26] He sought personal reassurance from the spirit world, rather than seeking political advice. King was highly eccentric with his preference for communing with spirits, including those of Leonardo da Vinci, Sir Wilfrid Laurier, his dead mother, and several of his Irish Terrier dogs, all named Pat. He also claimed to commune with the spirit of Franklin Delano Roosevelt, American president and close friend.[26] He sought personal reassurance from the spirit world, rather than seeking political advice.

38. Collect money from rich provinces and give them to the poor provinces. Collect money from rich provinces and give them to the poor provinces. Equalization Payments: THE ROBIN HOOD ECONOMY