Bennett’s New Deal
It is the mid-1930s and the height of the Great Depression.
In some regions of Canada, three of every ten people are
unemployed. People are penniless and starving. Everyone
is desperate.
The Prime Minister of Canada is R.B. Bennett.
Everyone blames Bennett for Canada’s economic problems.
Cars towed by horses because the owners could not afford
gasoline were dubbed "Bennett buggies.
To restore faith, Bennett proposes a "New Deal" for Canada.
Bennett’s New Deal
In the USA, President Franklin D. Roosevelt was enacting a
“new deal” policies to restore the US economy.
Following the USA success and seeking to restore
confidence in the Canadian consumer, Bennett proposed a
"New Deal" for Canada.
Thinking about the Depression, what do you think Bennett’s
New Deal would include? Remember, people are starving,
unemployed, poor, homeless and desperate. The people
with jobs work long hours for little pay. Unemployed men
are sent to work camps in Northern Canada. Nearly $2
million in relief has been provided, but it is controlled by
individual city governments.
Bennett’s New Deal
Bennett's "New Deal" included:
• a more progressive taxation system
• a maximum work week
• a minimum wage
• closer regulation of working conditions
• unemployment insurance
• health and accident insurance
• a revised old-age pension
• agricultural support programs
The New Deal would be very interventionist with greater
taxation, new and broad tax spending, and direct federal
involvement in the lives of everyday Canadians.
Bennett’s New Deal
Within Canada’s constitution, welfare falls under
jurisdiction of the provinces. Canada’s Supreme Court
ruled against Bennett.
Bennett did not win the next Canadian election. In effect,
Canadians were rejecting Bennett’s ideas about a new
Canada.
Mackenzie King became Canada’s new Prime Minister.
In 1938, Bennett abandoned Canada and sailed to England.
Yet, many of Bennett’s ideas are very strong today.
Canadians identify with the Canadian Broadcasting
Company (CBC), the Bank of Canada, national marketing
boards, minimum wages, etc.