Counterpoints: Exploring Canadian Issues, 2nd Ed. Reading Guide for Chapter 4 – Answer Key ____ / 100 The 1930s: A Decade of Despair Counterpoints: Exploring Canadian Issues, 2nd Ed., Chapter 4, pages 88-117 Causes of the Great Depression: pages 90-93 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. What is a "recession"? Less severe than a depression, it is a downturn in economic activity in which the value of goods and services declines. What is a "depression"? A long period of severe social and economic hardship, massive unemployment and suffering. What is a "market economy"? An economic system in which individuals produce goods and services and prices are determined by supply and demand. Explain why Canada's is a mixed economy. The government owns corporations (CNR), limits workers rights (to strike) and subsidizes some industries. What is a "mixed economy"? An economic system in which both individuals and the government produce and sell goods. What is meant by "supply and demand"? The quantity of a product that is available and the market's desire for that product; the price of the product varies based on supply and demand. What is "prosperity"? In the economic cycle it is the period of economic growth and expansion. What is a "recovery"? In the economic cycle it is the period following a recession during which the values of goods and services rises. What is "overproduction"? It occurs when more goods are being produced than being sold; leads to a decrease in production and then an increase in unemployment. What weakness in the Canadian economy was exposed by the Great Depression? Varied - heavily dependent on exports such as newsprint and grain; exports accounted for 80% of farm, forest and mining production; especially dependent on US markets. How did the US try to protect its domestic producers after the Stock Market Crash? Imposed protective tariffs. What are "tariffs"? Taxes on imported goods. What is meant by the term "protectionism"? A system of using tariffs to raise the price of imported goods in order to protect domestic producers. Why did world trade slow down in the 1930s? Countries around the world imposed tariffs. Describe the effects of protectionism on countries' war debts. Varied - countries which owed the US money they borrowed during WWI relied on international trade to pay it back. When trade declined they were unable to repay debts. What were "reparations"? Compensation from a defeated enemy for damages caused by a war. How did German war reparations affect France and Britain? They were dependant on German reparations to pay off their own debts incurred in WWI. Germany couldn't pay them and F and B were in turn unable to service their debts. © 2010 Better Classroom Guidebooks Page 1 of 5 Reading Guide for Counterpoints: Exploring Canadian Issues, 2nd edition – Chapter 4 – Answer Key 18. 19. 20. 21. 22. What is "speculation"? Buying shares "on margin" with the expectation that the value of the shares will rise enough to pay back the loan and make a profit. What happened to stocks prior to Black Tuesday? Speculation fuelled by easy loans drove stock prices above their real value; when investors "cashed in" others followed and caused a panic which caused stock prices to fall rapidly. What was "Black Tuesday"? October 29, 1929 - the day the New York Stock Exchange collapsed. What effect did the stock market crash have on Canada's economy? Varied - some individuals lost money and were bankrupted; many companies cut back production; people lost jobs; unemployed people stopped purchasing goods; more factories reduced production or closed; … What happened to the incomes of Canadians between 1929 and 1933? Average fell by almost 50% and many much more. The Desperate years – Making Ends Meet: pages 94-100 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. Describe conditions on the prairies in the early 1930s. Varied - 8 year long drought; dust storms; grasshopper plague; many farms abandoned. What happened to wheat prices in the 1930s? Why? Fell to their lowest in a century - hit 54 cents per bushel in 1932; more competition from other countries (p 91) increased international production. How were people without work seen in the 1930s? Varied - as if they were committing some sort of crime. What was "pogey"? Relief payments by a government - sometimes in the form of vouchers for food and other essentials. How did one obtain it? Line up at office and declare financial failure and that they did not own anything of value and were about to be evicted. Why were these payments kept very low? To encourage recipients to seek out work. What were "soup kitchens"? Places established - by private charities - to help the hungry and homeless. What was the extent of unemployment by 1933? One quarter of Canada's workforce was out of work. Why did young men "ride the rails" in this era? They travelled from town to town looking for work. What is a "transient"? An unemployed person who moves from place to place in search of work. Why were the rural unemployed treated differently than the urban unemployed during the Depression? It was assumed people in rural areas had livestock and gardens to feed themselves and needed less money. What does "deport" mean? To send back to one's country of origin. What happened to recent immigrants who lost their jobs and became destitute during the Depression. 28,000 were deported by 1935. How were destitute Chinese Canadians treated in Vancouver during this period? Initially many received no assistance; many were starving; when a soup kitchen was established it was expected to feed them for half the cost of whites. What is "anti-Semitism"? Discrimination or hostility against Jewish people. How did this affect them during the Depression? They were often barred from applying for jobs. How were Aboriginal families on relief treated differently from non-Aboriginals? Aboriginals were given $5 per month compared to $19-60 given whites because they were expected to "live off the land". Why might Vancouver's Lions Gate Bridge have been built in 1933 after it had been refused in 1927? Varied opinion - may include: seen as an employment project during the Depression. Why were many women forced out of the work force during the 1930s? Varied - many thought they were taking employment from male heads of households during a period of high unemployment. What economies did many women practice to help stretch the resources of their families during this era? Varied used fewer commercially prepared foods; kept bees to reduce sugar use; kept gardens; reused fabrics for clothing. Why do you think the birth rate declined during the 1930s? Opinion. Why do you think unemployed single women received no relief during the Depression? Varied opinion - may include: society believed women were dependents of their families; … © 2010 Better Classroom Guidebooks Page 2 of 5 Reading Guide for Counterpoints: Exploring Canadian Issues, 2nd edition – Chapter 4 – Answer Key 45. 46. What is "deflation"? The opposite of inflation, occurs when the price of goods and services falls. Why were people with jobs during the Depression especially well off? Varied - may include: the economy was deflating and their money could purchase more than in the past as prices for goods and services fell. Responding to the Depression: pages 101-105 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. What was PM King's response to the Great Depression? Varied - it was temporary and the economy would recover; that financial aid was a municipal and provincial responsibility; that he would never give money to a conservative provincial government. What is a "majority government"? A government in which the ruling party has more seats in the legislature than all the other parties combined. Identify three measures the government of RB Bennett took to deal with the Great Depression - and describe their effect. Unemployment Relief Act - gave provinces $20 million for work creation programs - no effect on the economy. Introduced tariffs to protect Canadian industry - helped encourage other nations to do same which created barriers to Canadian exports. Prairie Farm Rehabilitation Act of 1935 - helped farmers build irrigation systems and reservoirs - unfortunately, drought and poverty had already forced many farmers to abandon their farms. What was a "Bennett buggy"? An automobile pulled by horses when its owner could no longer afford gasoline. Why was Tim Buck jailed? Fearing the unemployed would be influenced by the Communist Party, PM Bennett outlawed it. Buck was its leader. What were "work camps"? Varied - employment camps for single men; usually isolated; workers cleared land, dug drainage ditches etc; men were paid 20 cents per day plus room and board. Food and living conditions were poor. What was the "On-to-Ottawa Trek"? A 1935 trip aboard freight trains from BC to Ottawa by unemployed men to protest conditions in relief camps. What was the reaction of people along the Trek's route? Many people donated food and supplies as they passed through towns along the way. How did PM Bennett respond? He had the Trekkers stopped by the RCMP in Regina and confined in a stadium; the leaders were allowed to proceed to Ottawa where Bennett chastised them as communist radicals and troublemakers. A riot broke out in Regina when the RCMP tried to remove the trekkers from the stadium - 1 killed, 130 injured. What was the "Regina Riot"? A riot that occurred when the RCMP and Regina police tried to remove the Onto-Ottawa Trekkers from a stadium. What happened in Vancouver after the relief camps were closed in 1936? Many men left destitute by the closures staged sit-ins in the Vancouver Art Gallery, Georgia Hotel and Post Office. Most left willingly but tear gas was used on hold outs at the PO. Read the side bar on page 103 that describes Richard Bedford Bennett's political career and accomplishments. Which do you think is his most important achievement? Why? Varied - may include: establishing relief camps for unemployed single men; the CRBC to regulated Canadian broadcasting in 1932; created a central bank in 1934 to decide banking policies; created the Wheat Board to control prices and marketing of Canadian wheat; persuaded the British Empire to give Canada preferential tariffs to stimulate Canadian exports. What was the US "New Deal"? It was a series of programs, such as assistance for the aged and unemployed, introduced by US President Roosevelt to deal with the Depression PM Bennett introduced his "New Deal" prior to the 1935 election. What did it promise? Progressive income tax rates; insurance to protect workers against injury, illness and unemployment; legislation to improve working conditions; old-age pensions for those 65 and over; supports for agriculture. How was his "New Deal" seen by voters? Too little too late. What is meant by the term "laissez-faire"? An economic condition in which industry is free of government intervention. © 2010 Better Classroom Guidebooks Page 3 of 5 Reading Guide for Counterpoints: Exploring Canadian Issues, 2nd edition – Chapter 4 – Answer Key 63. 64. 65. 66. What did economist John Maynard Keynes promote? That governments should jump-start the economy by spending money on programs to get people back to work. Once working they would spend money and the increased demand for goods would lead to more jobs and spending. What was PM King's response to the Great Depression after he won the 1935 election? To let the economy fix itself. What is a "welfare state"? A state in which the government actively looks after the well-being of its citizens. How were the lessons of the Great Depression applied by governments in 2008? Provided huge stimulus programs to keep industries operating and people employed. Politics of Protest: pages 106-113 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. What was the "CCF"? The Co-operative Commonwealth Federation; Canada's first socialist party; founded on the prairies in 1932; advocated government control of the economy. What is "capitalism"? An economic system in which the production and distribution of goods are owned privately or by shareholders in corporations who have invested their money in hope of making a profit. Who was JS Woodsworth? First CCF leader. What was the "Regina Manifesto"? The platform of the CCF; it supported public ownership of industry and social programs to assist those in need. What successes did the CCF have by 1939? Formed the opposition in BC and Saskatchewan. What was the "Social Credit Party"? A political party founded in Western Canada that was opposed to capitalism. Who was its leader in Alberta? William "Bible Bill" Aberhart. What did it promise voters in Alberta? A basic dividend of $25 per month to buy necessities - which was disallowed by the Supreme Court. What successes did the Social Credit Party enjoy? Won 17 seats in the 1935 federal election; would form Alberta's government until 1971. What was the "Union Nationale"? A nationalist French-Canadian political party led by Maurice Duplessis. What is meant by the term "Quebec nationalism"? A movement advocating for the protection and development of Quebecois culture and language. Who led the Union Nationale? Maurice Duplessis. Who supported the party? Roman Catholic Church and rural voters. What was the party's platform? Blamed many of Quebec's social problems on the English minority who controlled the province's economy; promised improved working conditions, social insurance programs, publicly owned power companies, credits for farmers. Who did Ontario voters select to lead their government during the Depression? Liberal populist Mitch Hepburn. What is "unionization"? The formation of unions. Who was elected to lead BC's government in 1933? Duff Pattullo. What programs did he introduce in an effort to combat the Depression? Shortened the work day; increased the minimum wage; increased relief payments by 20%; launched public works projects such as the Fraser River bridge at New Westminster and Vancouver's new city hall. Why did the federal government challenge many of Premier Patella's programs? Claimed they were in the federal domain. Describe the conditions in a relief camp bunkhouse as portrayed by the photograph on p 109. Is the picture accurate? Explain. Varied facts and opinions with reasons. Why did PM King not want t introduce new social programs during the Depression? Explain why you agree/disagree with his view. Felt that the government did not have sufficient money and should wait till times were better; plus opinion. © 2010 Better Classroom Guidebooks Page 4 of 5 Reading Guide for Counterpoints: Exploring Canadian Issues, 2nd edition – Chapter 4 – Answer Key 88. 89. 90. 91. 92. 93. 94. 95. 96. What was the "Rowell-Sirois Report"? The report of the Royal Commission on Dominion-Provincial Relations, a commission set up in 1937 to examine the Canadian economy and federal-provincial relations. Why was the Royal Commission on Dominion-Provincial Relations created? Disagreements over which level of government had the right to collect taxes and should pay for social and unemployment assistance. What did the Royal Commission on Dominion-Provincial Relations recommend? Give equalization payment to poorer provinces to ensure all Canadians had equal access to services; the federal government should be responsible for social programs such as unemployment insurance and pensions. What are "equalization payments"? A federal transfer of funds from richer to poorer provinces. Why was the Rowell-Sirois Report largely ignored? Economic conditions were starting to improve and WWII would break out soon. What is "pablum"? The first vitamin-enriched pre-cooked cereal for children. Who was Dr. Wilder Penfield? A Canadian doctor who developed a surgical treatment for epilepsy in the 1930s. Who was Norman Bethune? A Canadian doctor who provided free medical care to the poor in Montreal and set up a mobile blood transfusion team during the Spanish Civil War. Read the accounts of the private lives of RB Bennett and WLM King on pp 112-113. Which do you think is the more interesting figure? Explain. Varied opinions and reasons. The Depression and Global Politics: pages 114-115 97. 98. 99. 100. Why was Germany unhappy after WWI? Varied - resented the "war guilt" clause; suffered economic depression and inflation in its efforts to pay $32 billion in reparations. What is meant by the term "Keynesian economics"? An economic theory named for John Maynard Keynes who advocated government intervention in the economy, especially during economic downturns. How did Japan deal with the effects of the Great Depression? Adopted Keynesian economics and increased government spending; aggressively expanded territory in Manchuria to gain control of resources. What effect did the Great Depression have on Russia? Varied - little: communism insulated it from the effects; political and social repression as Stalin imposed his economic and agricultural policies. © 2010 Better Classroom Guidebooks Page 5 of 5 Reading Guide for Counterpoints: Exploring Canadian Issues, 2nd edition – Chapter 4 – Answer Key