Government Intervention and
Responses
Laissez-Faire vs Protests and Protest
Parties
Laissez Faire – King Part 1
• Mackenzie King did not
believe in government
support for the
unemployed.
– Said he would not give a
nickel to a Provincial
Government to help
with Pogey (if the
government was
Conservative)
RB Bennett – Laissez-Faireish 2
• Unemployment Relief Act
– Too little too late
– Kept Pogey low
• Prairie Farm
Rehabilitation Act
• Relief Camps
– Put unemployed in work
camps –
– .25$ per day
• Tariffs
– Led to retaliatory tariffs
Relief Camp Worker Strike
• On to Ottawa Trek
– Relief Camp Workers
from BC form a union
– Try to go to Ottawa by
rail to meet Bennett
– Wanted unemployment
insurance and fair wages
– Stopped in Regina
• Regina Riot
– One police officer killed
– Trek Broken Up
Protest Parties
• CCF
– Socialist Party led by James
Woodsworth
– Their party platform was
called the Regina
Manifesto
– Would become the NDP
• Social Credit
– Led by William Aberhardt
– Wanted $25 per month
• Union Nationale
– Farm Credit Policies
The New Deal
• Bennett decided to try
Roosevelt’s idea from
the US
– Keynsian Economics
– Deficit Financing
• Govt spends money they
don’t have to create jobs
• New Deal does not
occur as Bennett loses
next election
Mackenzie King – Laissez-Faire 3
• King is reelected
– Does not support
unemployment insurance
until economy improves
• Would occur after WW2
begins
• Rowell-Sirois Report
– Recommends payments
from Federal Govt to
Provincial Govt for Pogey
– Poor Provinces get more
• Doesn’t occur till after
Depression
Rowell – Sirosis Report - Two
Important Recommendations
• 1. Equalization Payments
The federal government should give money to
the poorer provinces so every province can offer
the same level of services.
• 2. Federal responsibilities increased
The federal government should be responsible
for unemployment insurance and other social
benefits such as pensions.
Who was unhappy? Why?
• The wealthier provinces did not like their tax
dollars going to the poorer provinces.
• The provinces thought their provincial powers
were being taken away because the focus was
on federal responsibilities.
From Bennett to King
1930 Election
1935 Election
R.B. Bennett becomes
Prime Minster
Mackenzie King becomes
Prime Minster
Supports government
intervention in the
economy
Does not support
government intervention
in the economy
New Political Parties
Socials 11
CCF
•
•
•
•
Party Leader: J.S. Woodsworth
Founded in 1932
Prairie provinces
Party Platform:
– Against capitalism
– Support socialism (government controls the economy so
all Canadians benefit equally)
– Party platform known as the Regina Manifesto
– Advocated for social programs to help the elderly, the
unemployed, the homeless, and the sick
– Thought government money should be spend on public
works to create jobs
Social Credit Party
•
•
•
•
Party Leader: William “Bible Bill” Aberhart
Founded in 1935
Western Canada
Party Platform:
– Based on the belief that capitalism was a wasteful
economic system
– Wanted the government to release money hoarded by the
government into the economy so people could spend it
– Popular in Alberta where the Great Depression had a
larger effect
– Wanted greater provincial control over the economy
Union Nationale
•
•
•
•
Party Leader: Maurice Duplessis
Founded in 1935
Quebec
Party Platform:
– Supported Quebec nationalism
– Believed Quebec’s social and economic problems were
because of the English minority in Quebec
– Support came from the Roman Catholic Church and rural
voters
– Wanted to improve working conditions, social insurance
programs, publically owned companies, and a system of
farm credits