Political Responses to the
Great Depression
Canada’s Great
Depression
IB History of the
Americas
MacKenzie King
J.S. Woodsworth
Maurice Duplessis
“R.B. Bennett
“Bible Bill” Aberhart
The Politicians offer their Solutions
Guiding Questions
Compare and contrast the government’s
response to the Depression in Canada
and the US.
To what extent did the policies of Bennett
and King bring an end to the Great
Depression in Canada
How did the Great Depression change the
relationship between government and
business in Canada?
How did the Government
Respond?
At this point in Canadian
History, the social programs
that we know of today such
as Employment Insurance
and Welfare did not exist.
How will those Canadians
most seriously affected by the
Great Depression make ends
meet?
What would the government
of Prime Minister MacKenzie
King do?
27% Unemployment
MacKenzie King
W.L. MacKenzie King
Prime Minister (Liberal Party) of
Canada from 1921 to 1930.
First term struggle to work with the
Progressive Party and his own Liberal
Party, especially on the issue of tariffs
(which prairie progressives wanted
lowered).
MacKenzie King’s government
presided over a period of unrest
among farmers in the Prairies as farm
prices declined.
He also faced growing dissent from
WWI veterans who expected their
sacrifices to be compensated during
difficult economic times.
Black Tuesday
Canada’s stock market (Toronto) was
closely linked to the NYSE, thus
when the U.S. market crashed so did
the CSE
1929-1933: GNP fell 40% (37% US),
unemployment rose to 27%, exports
in wheat, minerals and timber fell by
50%.
Under MacKenzie King’s laissez-faire
leadership the national government
took minimal action to provide relief
or encourage economic recovery.
Relief programs were the
responsibility of ill-equipped provincial
governments.
Homeless Canadian family in Western
Canada during the heart of the Depression
King’s Response to the Depression
MacKenzie King thought
that it was the responsibility
of the provinces to aid their
own citizens.
He wasn’t prepared for the
depression (not many
political leaders were) and
so he didn’t take an
interventionist approach to
the Economy.
King was eventually openly
criticized for his
controversial comment that
he wouldn’t give “a five cent
piece” of relief money to any
province that had a
Conservative Government
He won’t give “a five cent piece”
Enter “Bonfire” Bennett
R.B. Bennett was Leader of the
Conservative Party of Canada
He had the nickname “bonfire”
because of his bombastic (loud)
speaking style.
On July 28th, 1930 R.B. Bennett
became Prime Minister of Canada.
Originally from New Brunswick,
grew up to be a self-made
millionaire as a corporate lawyer
and businessman in Calgary.
Given his “rags to riches” humble
beginnings, he believed in
capitalism and the free-enterprise
system (i.e. leave economy alone
and everything will work out in the
end)
Prime Minister R.B. Bennett
Bennett tried to combat the depression by
increasing trade within the British Empire and
imposing tariffs for imports from outside the
Empire. Known as the Imperial Preference
Policy
Conservative pro-business policies provided
little relief for the unemployed
Bennett’s Response to the
Depression
He put $ 20 Million dollars
towards emergency relief
He raised the tariffs on
imports to 50% in order to
protect Canada’s
industries from foreign
competition and end the
trade deficit. (Do you think
this would work?)
“Bonfire” Bennett
Blaming it on Bennett
No Unemployment Insurance
Prime Minister Bennett blamed for inability
to end Depression
Bennett Buggies – Cars pulled by horses
Bennettburghs – homeless communities
Bennett blankets - newspapers
Remember the Relief
Camps??
Critics argued that the federal
government had established
the camps in lieu of a program
of work and wage increases.
Conditions in the camps were
abhorrent, not only because of
the low pay, but the lack of
recreational facilities, isolation
from family and friends, poor
quality food, and the use of
military discipline.
Communist Party leaders saw
a chance to organize strikes in
the camps. Forming the Relief
Camp Worker’s Union
Bennett’s New Deal
January 1935, Bennett announces in a radio address “I am for
reform” and launches his own New Deal.
The plan called for federal government intervention:
> minimum wage, maximum work week laws,
> unemployment insurance
> retirement pensions, health insurance
> mortgage assistance for farmers
Most of the New Deal was seen by the Supreme Court of
Canada and the Judicial Committee of the Privy Council as an
encroachment on the authority of provincial governments and
struck down as violation of Section 92 of the British North
America Act (Canada's Constitution)
Bennett’s reform effort was seen as too little, too late by
voters who elected McKenzie King in October 1935
The Return of King
In 1935, the Canadian
people had enough of
Bennett who they blamed
for prolonging the
Depression.
Running under the slogan
“King or Chaos”, King won
the election.
Bennett ended his final
days in Great Britain and
remains the only
Canadian prime minister
to be buried outside of
Canada.
He’s Back Again
MacKenzie King Returns
Prime Minister (Liberal Party) of Canada from 1935 to 1948.
Introduces relief programs:
> National Housing Act
> National Employment Commission
Nationalizes:
> Canadian Broadcast Corporation 1936
> Trans-Canada Airlines (Air-Canada) 1937
> Bank of Canada 1938
From 1939, an increased demand in Europe for materials,
and increased spending by the Canadian government on
public works created a boost to the economy.
Unemployment declined as men enlisted in the military.
By 1939, Canada was experiencing economic prosperity for
the first time in a decade.
Other Political Parties offer their
solutions
Bill Aberhart was a preacher and
school teacher from Alberta
School principal/evangelist.
Begins broadcasting his “Back
to the Bible” program to a large
audience in 1925.
He thought that the Depression
was caused by people not having
enough money to buy goods and
services; especially farmers.
His idea? Give every citizen $25
per month “prosperity certificate”
so people could buy more
products and help the economy.
Social Credit Party leader
“Bible Bill” Aberhart
William “Bible Bill” Aberhart
Social Credit Theory advocates
> government income subsidies to stimulate
economic growth
> tight regulatory control of banks to
manage money supply
His party was called the “Social Credit” Party.
His party was elected in 1935 in Alberta, but
they never paid out the certificates. The party
was a major force in the west and stayed in
power until the 1970s in Alberta. It was also a
major force in BC politics
C.C.F.
Co-Operative Commonwealth Federation (CCF) Socialist
political party established in Calgary, Alberta in 1932.
Platform:
> Concentration of wealth in the hands of a few threatened
democracy.
> New social order calling for production and distribution for
the public good not private gain.
CCF joined the League for Social Reconstruction (LSR)
Regina Manifesto 1933:
– All industry related to social planning would be
nationalized
– Universal health care, unemployment compensation, and
pensions would be provided by amendments to the BNAA
The CCF enjoyed modest success in the Western Provinces
J.S. Woodsworth
He was a “conscientious objector”
during WW1 and worked as a minister
in Winnipeg helping the homeless.
He believed that the free enterprise
system had failed the people during
the depression and that the
government needed to take a greater
role during the depression.
He proposed: Unemployment
insurance, free medical care, family
allowances and old age pensions.
Many of his ideas have been adopted
in Canada.
His Co-operative Commonwealth
Federation (CCF) Party later was
renamed the NDP in 1961.
J.S. Woodsworth
Communist Party of Canada
Became a legal party in Canada in 1924.
Criticized as Un-Canadian because of its allegiance to
Communist International (Comintern) operating out of
Moscow
1919, Red Scare, Section 98 of the Criminal Code outlaws the
Communist Party. Party leaders were imprisoned in 1931.
Helped organize the trek to Ottawa. Arthur “Slim” Evans
The Union Nationale
Maurice Duplessis blamed the
existence of the Depression on
the fact that many of Quebec’s
industries were owned by
Americans and English
speaking Canadians.
He formed the Union Nationale
so that Quebeckers would have
more control over their
economy.
The Union Nationale won the
Quebec election in 1936 and
remained a force in Quebec
politics for the next 22 years
Maurice Duplessis of the Union Nationale