Political Responses to the Great Depression

1. Political Responses to the Great Depression Canada’s Great Depression IB History of the Americas MacKenzie King J.S. Woodsworth Maurice Duplessis “Bible Bill” Aberhart “R.B. Bennett The Politicians offer their Solutions

2. 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?

3. 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

4. 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.

5. 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.

6. Homeless Canadian family in Western Canada during the heart of the Depression

7. 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”

8. 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

9. 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

10. 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

11. Blaming it on Bennett

12. No Unemployment Insurance Prime Minister Bennett blamed for inability to end Depression Bennett Buggies – Cars pulled by horses Bennettburghs – homeless communities Bennett blankets - newspapers

13. 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

14. 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

15. 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

16. 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.

17. 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

18. 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

20. 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 • The CCF enjoyed modest success in the Western Provinces

21. 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

22. 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

23. 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