Effects of the Great Depression

1. Effects of the Great Depression • New Voices and New Ideas

2. Less Purchasing by Everyone • Stock Market Crash • people stopped buying things • led to a reduction in the # of things produced • thus, a reduction in the workforce • no work - unable to make payments • unemployment rate rose above 25%

3. Banking Failures + Closures • banks provided loans • people couldn’t make loan payments • banks failed • people lost their savings • surviving banks were less willing to create new loans • over 9 000 bank failures in the US • most banks in Canada survived, but were affected by the US

4. Poverty, Homelessness and Emotional Depression • men were expected to support their families • these men suffered from: • anxiety • worthlessness for failing to provide • many resorted to: • stealing food • stealing money • committing suicide

5. Birth Rates • Canada’s birthrate dropped from 13.1 live births per 1000 in 1930 to only 9.7 by 1937

6. Urbanization Rates • Canada’s rural population grew more rapidly than its urban population • many unemployed thought “going back to the land” was preferred over living a miserable existence in the city

7. Immigration Rates • dropped from 164 993 in 1929 to 11 277 in 1935

8. Farmers and Drought • prolonged drought • thousands of farmers abandoned their lands and moved west to BC

9. Political Consequences • Germany • democracy did not survive • rise of fascism - Hitler • Canada • new political parties formed in reaction to the government’s inability to address the problems of the depression • The Canadian Cooperative Federation (CCF) • Social Credit Party in Alberta • Union Nationale in Quebec

10. CCF • 1933 • under the leadership of J.S. Woodsworth • formed in Regina • supported by drought stricken Saskatchewan and labour unions and workers • committed to rescuing Canada from the Depression • promised employment and health insurance, public housing, agricultural price supports, laws to protect farmers from creditors & public ownership of major industries and financial institutions

11. CCF contiuned • first party to practice Reform Liberalism • allows state intervention • creates an environment that enhanced opportunities for individuals • removed “intolerable” inequities in society • did not trust in the market place • In Saskatchewan, the CCF was elected to a majority government under Tommy Douglas • introduced a health plan in 1946 that provided health care to everyone regardless of economic status

12. from the CCF to the NDP • 1961 • abandoned some of the more radical beliefs and changed their name to the New Democratic Party of Canada • although the CCF/NDP has never been elected federally, it is considered “the conscience of the House of Commons”

13. Social Credit Party • “Give each citizen a monthly $25 prosperity certificate, guaranteed by the government to spend on food, clothing and shelter.” ~ William Aberhard

14. Social Credit Party • 1932 • Aberhart used his radio program to encourage other Albertans to adopt social credit as the means of rescuing the province and Canada from the drastic effects of the Great Depression

15. Union Nationale Party • Quebec • led by Maurice Duplessis • blamed “aliens” (English minority) for the problems in Quebec • ran Quebec like a dictator and remained in power until 1959 • The Padlock Act (1937) • allowed the Attorney-General to padlock the premise of any “traitor” organization

16. Summary • regional parties emerged in provincial politics • new ideas helped to combat the depression • the national identity forged by MacDonald, Laurier, and Borden began to break down