Why they (CAN & USA) were where they were…

1. Why they (CAN & USA) were where they were… • Mentioned a few causes already: • Tariffs & cost-cutting measures… • BIG theme: No one realized to the extent which “national” economies had become “international” in nature. • Further to this, being set in their ways didn’t help the cause none too much… • “Old” economies were slow to react with any solutions that would be viewed as being radical • Remember, “Old” stable democracies did not get to be “old and stable” by being radical… • New radical solutions were adopted by “newer” countries, i.e. Germany. Or by democracies that did not survive to become stable…

2. Responses: The United States • Depression in US hit harder than anywhere else • One reason: Ideological problem with government intervention in the economy… that being how their wasn’t one • Some governments introduced “socialist” measures to soften the blow from the depression; President Herbert Hoover decided to tough it out… • Whole communities of unemployed workers lived in tarpaper shacks, communities were named “Hoovervilles” in his “honour”

3. Hoover’s lack of response… • President Hoover chose not to set up any relief measures. • This set the table for the 1932 United States Election • Franklin Roosevelt introduced the new deal for Americans • He promised to introduce this to Americans in “100 days of action” should he be elected – which he was… • The “new deal” was a set of relief programs which were aimed at putting Americans back to work.

4. Response II: Keynesian Economics • John Meynard Keynes was a British economist who proposed radical solutions to solving the depression • Was anti-belt tightening, said countries should “spend their way out of debt” • Real problem of depression = lack of cash in circulation, so governments should borrow money to repay in the future when economy recovered • This was known as “debt financing” • Projects should be “of value” • Not just “make-work”, should be modernizing infrastructure, idealprojects…

5. Keynes II • Keynes felt that this responsibility to direct the economy was the government’s task, this was due to the fact that they were the only institution large enough to reverse the spiral • Today – in hindsight, this was a simple suggestion/idea; Past – old economic ideas had to be blurred • Adam Smith – 19th Century economist – proposed that government should play little role in the economy; Keynes’ ideas were ignored by those who followed Smith’s model • Exceptions: Hitler’s Germany, the USA, & Japan • Roosevelt called Keynes a “fool”, however his “new deal” followed Keynes’ principal ideas…

6. Response III: Canada • Unemployment worsened across Canada, government and people tried different ways to recover: • Door to door salesmen • Panhandled • Approached churches & charities for help • Drifted in search of employment • Collected public relief, aka dole or pogey, in the form of vouchers that were exchanged for goods

7. Other Canadian Responses • Riding the Rails • Hitching a ride on freight trains, either on the top of cars, inside cars, or on top of lumber or other products on open flat cars. • Initially people rode in search of employment, when none was to be found, they just travelled back and forth across the country for something to do. • Canadian railway police tried to control this, had little effect in discouraging the situation…

8. Canadian Responses II • Pogey • Similar to our modern day welfare system • Program developed by government, provided vouchers to those who were qualified, exchange for food or other essential items • Pogey was kept lower than the lowest paying jobs on purpose, done so to discourage people from wanting it • People ended up starving and getting sick because pogey wasn’t enough…

9. Canadian Responses III • Unemployment Relief Camps • No government was adequately prepared to solve or address the economic collapse • Federal & Provincial governments downloaded the responsibilities of providing relief to the Municipal level • PM King was unwilling to deal with the depression • Provinces asked for help, King’s response, wouldn’t give them a “five-cent piece”… • Whoops… King lost the 1930 election to R. B, Bennett – he had some plans…

10. Bennett’s Relief Camps & Tariffs • PM Bennett initially set up Unemployment Camps for single, unemployed men • Within these camps men laboured on public works projects such as road building • Paid $0.20 per day, plus room and board • Bennett also set up Tariffs to protect Canadian industries. • Though that other countries would lower their tariffs as they needed Canada’s staple products… by 1935 only Great Britain did

11. Canadian Responses IV: “New Deal” • Bennett’s New Deal • PM introduced his own Canadian version of Roosevelt’s “New Del” in 1935, this included: • Progressive Taxation (more you make, more you pay) • Maximum number of hours in a work week • Introduced minimum wage • Stronger regulation of working conditions • Unemployment insurance • Health and accident insurance • Revised old age pension plan • Agricultural support • Wheat marketing board (regulate prices) • Many of these programs, which came as a result of the depression, make up our modern day “social safety net”

12. Bennett’s Deal II • These benefits helped to protect individuals and businesses in times of economic crisis • No such provisions existed before the depression, so some people felt that it was “too little, too late” • Did little to help with unemployment… • Bennett’s plan drew similar “honours” to those received by President Hoover in the US… • Bennett Barnyard = abandoned prairie farm • Bennett Blanket = newspaper • Bennett Buggy = broken down car pulled by horse • Bennett Coffee = roasted wheat

13. Canadian Responses V • On-to-Ottawa Trek and the Regina Riot • Relief camps were not enough to address financial crisis caused by the depression • June 1935, thousands of relief camp workers, bitter and frustrated, boarded trains from Vancouver bound to Ottawa • Gained strength as it crossed the country • Workers wanted “work with wages” or “real jobs”

14. Regina Riot • When the Trek made its way to Regina it was stopped by the RCMP – a riot broke out… • 300 RCMP dressed in riot gear, concealed in large moving vans, with another 50 on horseback • Using baseball bats, billy clubs, and tear gas the RCMP fought the crowd for more than 3 hours…

15. Regina Riot II: The Results • Dozens of “trekkers” were injured, and one RCMP officer was beaten to death • One striker did get to meet with Bennett, with no real consequence • Support began to fall back to King, and following the election of 1935 King was back again! • King or Chaos!

16. A little diversion • In the middle of the depression, one of the most unusual events of the 1930s gave Canadians something to talk about • The Dionne Quintuplets were born in 1934, first set of quintuplets to live more than a few days • Ontario Govt took over welfare of the“quints”, placed in special nursery… • Parents & family rarely saw the quints • ONT Govt paved a special road to hospital where quints were; generated $500 million in tourism! • Postcards & fertility stones • 9 year court battle, quints went home…