1. The 1930s in Canada & Treating a `Sick` Economy
Government Action and Inaction during the Great Depression

2. Symptoms
Few prepared for the severity or duration of the economic slump
1/3 Canadians out of work by 1933
1/3 underemployed or forced to “tighten belts”
Malnutrition, starvation, etc
Men turned to roaming for work
Dependence on meagre amounts of relief for survival

3. Regional Effects:
The Great Depression was a worldwide condition, but each country was affected in its own way.
Canada:
Overall: National income down 40% from
Central Canada: international competitors & small businesses destroyed
Maritimes: no market for fish or coal (only real industries)
West & Prairies: hit particularly hard
Dependence on wheat (price at an all-time low)
Drought & dustbowl
Grasshoppers

5. Stage 1: Denial
PM William Lyon Mackenzie King believed the economy/business would correct itself soon
He was reluctant to commit $ to relief (welfare)
Thought Gov`t should stay out of the economy
Made relief a provincial/municipal matter
Suggested poor should turn to local charities (already overwhelmed)
Stated he wouldn`t give a “5 cent piece” to provinces with non-Liberal Premiers
King was voted out in 1930

6. W.L.M. King
R.B . Bennett

7. Stage 2: Band-Aid for a Heart Attack
PM R.B. Bennett (millionaire/businessman/Conservative) replaced King
Bennett also felt gov`t should not regulate the economy/business
Raised tariffs to promote Can. Products (actually strangled trade)
Gave some $ in relief, but not very much
Bennett also felt the Depression could be “waited out”

8. “Bennett Buggy”

9. “Bennett Borough”

10. Stage 3: Blame the Patient
King & Bennett both acted as if the unemployed were the problem
Tried to blame them for the situation: lazy, shiftless, unwilling to work
Gov`t kept relief payments intentionally low to “promote work” (not enough to live on)
For much of the GD, Gov`t refused to acknowledge that there wasn`t work to do

11. Stage 4: Quarantine Relief Camps What were they?
Read P
Relief Camps
What were they?
Why did Bennett create them?
Result?

12. On-to-Ottawa Trek What was it? Who was involved? What did they want?
How did it end?
Results?

13. Stage 5: Change Doctors
Bennett is blamed for the 5 worst years of the Depression (Bennett Buggy, Bennett Blanket, etc.)
1935, King is re-elected by blaming Bennett (“King or Chaos” campaign slogan)
King mimicked Roosevelt’s “New Deal”
Massive public works (roads, bridges, buildings, etc.)
Govt resources to keep population working
Large-scale relief
Started Gov`t regulation of business & wages
King still wanted to avoid too much Gov`t action, but also wanted to stay PM

14. Stage 6: An Uncertain Cure
King`s reforms created many jobs, but the economy was still lagging
By 1939 there were some signs of recovery, but not many
The Great Depression ended with the beginning of WWII
Gov`ts that had hesitated to spend money on relief, rushed to spend it on tanks, planes etc.
All this business revived Canada`s economy and turned it, once again, into a roaring engine