Causes of The Great Depression

1. Causes of The Great Depression • Overproduction and expansion • Dependence on primary products • Dependence on the US • High Tariffs - Protectionism • Too much credit – Buying on The Margin • Psychological Uncertainty

2. People in Trouble, But No Real Help • By the early 1930s, thousands were without jobs, but Canada did not have government programs in place to help people. • The attitude of the rich in Canada had been that it was a person’s fault for not having a job, not the economy or government. For example, John Eaton said that the Depression was a good experience since it taught men the value of a job.

3. Western Canada Hit Hardest • The western provinces were the hardest hit by the Great Depression. • As farming areas, Saskatchewan and Alberta suffered the most. For example, the price of wheat (an important crop) per bushel fell from $1.65 in 1929 to $0.30 in 1931. • Drought made the situation even worse for farmers, as the land was too dry to grow many crops. • Even grasshoppers became a problem, as millions ate crops that did grow!

5. Western Cities • Cities across Western Canada already had many unemployed people. Soon other people who had lost jobs in farming, forestry, mining and fishing moved to the cities, adding to the numbers of people without jobs. • One angry citizen said that Vancouver had become “just a blamed summer resort for all the hoboes of Canada

6. The Rest of Canada • The impact of the Great Depression on the Maritimes (provinces on the Atlantic Ocean) was not as bad as elsewhere in Canada, but that is because the area had had a bad economy for a long time! • The provinces of Quebec and Ontario had huge industries with many jobs in the 1920s, but soon many of these industries could not sell their products, and people lost their jobs.

7. Women Don’t Do Well • Women largely ignored during the Depression. • many people still felt women belonged in the home. • Women with jobs during the Depression were seen as stealing jobs from men! • Many of the jobs women had entered in during and after WWI were no longer available. • Many women had to go back and take traditional jobs, such as cleaning and sewing.

8. It Will Get Better On Its Own • The Prime Minister at the start of the Great Depression was Liberal William Lyon Mackenzie King. • King not prepared for the Great Depression. • King believed that the Depression was only a “temporary seasonal slackness” • it would soon get better without government help.

9. Mackenzie King’s Bad Decisions • The Liberals had been in power during the 1920s • 1920s economy had roared • Government should leave alone • Close to conservatives • At start of depression Provincial governments asked federal for help • King refused saying he would not even give these governments “a five cent piece.” • People thought King did not care about them

10. The Conservatives Want Power • R.B. Bennett, leader of the Conservative Party • Bennett was tall, well-dressed and a millionaire. • Nicknamed “bonfire” Bennett, he was a powerful speaker • Useful in new radio age • Ready to take advantage of King’s five cent comment.

11. The 1930 Election • At this time 15% of Canadians were unemployed • King did not talk about the Great Depression • Again, King seemed like a man who did not understand what was happening. • Bennett claimed he would improve Canada’s economy • Ideas did not include government spending more money • This went against Conservative economic ideas • The Conservatives won election: • Canadians blamed King for not doing anything to help the economy. • Bennett was much better at using a new technology to campaign--the radio!

12. Bennett’s Tries… • It was now Bennett’s job to solve the Great Depression, but would a Conservative do any better than a Liberal? • Bennett tried to help: • Raising tariffs (taxes) on foreign imports, • Tried to increase trade with Britain • Spent more on help for the unemployed than 1920s.

13. ….And Fails • Didn’t work: • The raised tariffs did not help Canada or any other country • Canada did not get any closer to Britain • Provincial govt asked to pay for programs but they didn’t have any cash! • 1933, almost one-third of Canadians unemployed – worst year • Canadians blamed Bennett. A newspaper came to be called a Bennett blanket • Horse pulled cars called Bennett Buggy.

14. Bennett’s idea - Relief Camps • Idea was to get unemployed out of the cities • Bennett created relief work camps that provided work, food and shelter for these “single homeless persons.” in countryside • The thousands of single, unemployed men traveling the country by train came to be seen as dangerous to society.

15. Relief Camps • 175,000 people • Though some camps were well run, comfortable and treated workers with respect, many were more like prisons. • The pay was 20 cents per day, food was terrible, and bedbugs plentiful. • The work of clearing land for highways and airports in swampy, bug-filled areas was hard. • Also, camps were isolated in the wilderness, did not allow women. entertainment or alcohol. • Relief camp workers began to organize a Relief Camp Workers Union • Spread new ideas, especially communist • Went to City of Vancouver and demanded better conditions and better pay

16. Onto Ottawa Trek • Workers started on train form Vancouver to Ottawa, • Wanted to go directly to the Federal Government and Bennett to complain. • More workers got on when train stopped in every city. • The train was stopped in Regina, Saskatchewan, and only march leaders were allowed to go on. • Talks did not go well • Order given for Trekkers to leave Regina

17. Regina Riot • Trekkers did not want to leave • July 1st 1935 riot between trekkers and police • 1 detective killed • 130 trekkers arrested. • Bennett believed that the trekkers were Communists, wanting to overthrow the government • Some were but most wanted better conditions in camps. • People blamed Bennet for the riot – they thought he had not been fair to trekkers • Seen as similar to King’s 5 cent comment

18. A Desire For New Ideas • People unhappy with Liberals and Conservatives • Both of them could not solve problems. • Both seemed like they did not care • Was it time for something new? • Western Canada that many new, alternative political parties began.

19. CCF • CCF founded 1932 by J S Woodsworth • Made The Regina Manifesto – wanted end of Capatalism and government to run more of the economy • Socialist but not communist • Some small successes. • Business and ordinary Canadians thought they were too extreme • Became today’s NDP

20. Social Credit • Mix of parties and ideas • Led by ‘Bible’ Bill Aberhart • Thought people should decide how to spend money not government • Thought money should be sent to families and not spent by government • Did become Premier of Alberta • Ideas never became law

21. From the Right to the Left • End 1934 – Bennett nervous about election in 1935 • Needed something new – looked to the US • Roosevelt’s New Deal had been successful • Government giving jobs by building roads, bridges etc. • Early 1935 – suddenly says government should be more involved in government • Bennett’s New Deal was ambitious--it tried to do a lot! • The government began to help in many ways – sometimes too much and courts said no. • Many Canadians didn’t think Bennett was genuine • New Deal seen as just a way to save his unpopular government from defeat in the upcoming election.

22. Bennett’s New Deal • made promises to introduce: • unemployment insurance • minimum wage • limit on work hours Conservatives still lost 1935 election

23. 1935 Election Campaign • During the 1935 election campaign Bennett tried to use the radio again to his advantage. • King made few promises but did say he would close down the relief camps. • King also ran on a campaign of “King or Chaos”, criticizing Bennett for his heavy-handed repression of the On-to-Ottawa Trek.

24. King Back in Office • King would say, “what is needed more than a change in economic structure is a change of heart.” • King promised to balance the budget and even cut government spending – same as before! • He did close the relief camps, but mostly because he viewed them as being too expensive. • King lowered the tariff and signed a trade deal with the United States in an attempt to kick-start the Canadian economy. • King did adopt a few of Bennett’s New Deal policies • Slower and more careful than Bennett • Canadians would have to wait for WWII to help their economy recover.