Canada and the Great Depression

Overview

There is debate about what caused the Great Depression

It was a combination of events and decisions that caused the Great Depression.

(Rasmussen, Hannah )

The Economic Impact of WWI

After WWI (1914-1918) Europe was trying to rebuild

Many European countries struggled to pay their war debts and reparations

Most owned a lot of money to American banks

These loans were so high the countries could not pay them

Economic problems in many countries in Europe

(Rasmussen, Hannah )

The Economic Impact of WWI

The US government would not reduce/ forgive debts

The US economy began to slow down

European countries began to find it difficult to borrow money.

USA also had high tariffs

Europeans could not make money selling their products in the US market

Countries began to default on their loans. (Rasmussen, Hannah )

In Germany by 1922 their bank notes were of so little value people burned them to keep warm

Here in Canada in the post WWI era

Prices were on the rise , for example, 1lb of beef cost $0.10 in 1914 but by 1918 it was $0.39.

The Communist Revolution in Russia had started with labor unrest/strikes

Canadians worried as many here threatened to strike

Soldiers returned from war to few job opportunities

The government offered support temporarily but cut programs in 1921- many disabled veterans were unemployed

Protests followed- unions were formed- strikes followed (Winnipeg 1919)

The Roaring Twenties

The 1920s were a boom time in Canada.

There was a high demand for raw materials (forestry, mining, pulp & paper) and industries developed mass production techniques-

Exports such as wheat became of primary importance in the Canadian economy

Unemployment was low and earnings for individuals and companies were high.

The Roaring Twenties People were able to spend and consume huge amounts.

Foreign investment in Canadian markets increased

USA accounted for 58% of foreign investment in Canada)

Credit as a way to buy things was introduced- impact on how people played the stock market

But prosperity came to a halt with thestock market collapse around the world inOctober 1929.

THE CRASH of ’29 (Black Tuesday)

Uncontrolled buying = shares above “true” value.

Big investors see this and sell.

Panic selling occurs with smaller investors

Bank reserves drop

Consumers put off purchases

Production of goods slows down –manufacturers had large inventories they could not sell

People are laid off

In Canada

1928 wheat crop crash

Work money and food began to run low

Federal Department of Labor that a family needed between $1200 and $1500

At that time, 60% of men and 82% of women made less than $1000 a year.

GNP fell from $6.1 billion in 1929 to $3.5 billion in 1933

"The Great Depression of Canada Homepage”

Effect on Canadian Economy

Canadian economy dependent on exports (trade with other nations (Europe and USA)

Foreign countries stopped buying

Countries imposed tariffs

1930 – 1939 severe winter with little snow

drought in western Canada = crop failures

Effect on average citizens

Those who do still work have to take pay cuts

Canada had many employed in staple trades and manufacturing

Many lose jobs

The unemployed begin to default on mortgage payments.

Effect on average citizens

Roaring Twenties- Dirty Thirties:

The 1930’s are referred to as the dirty thirties

Suffering, unemployment, and homelessness.

Sandstorms- also known as the “Dust Bowl”

Soil very fine- drought- no rain to keep topsoil in place

Soil easily picked up to blow across the countryside

Conditions were very bad in the Prairie Provinces.

Dust Storm

Link to crop prices

Grasshoppers:

Clouds of grasshoppers would black out the sky.

They would pass by and eat anything in their way

The things that they did not eat they would spoil so that it would become useless

Grasshoppers

Riding the Rods/ Riding the Rails:

Jobless and homeless men were on the move- looking for work

Hide under trains for a free ride

Unable to leave once the train is in motion.

Incredibly dangerous

Riding the Rods/ Riding the Rails:

Hobos’ Jungle:

Near every city “jungles” formed

Thousands of homeless men made their camp before passing through to the next town.

Conditions in these camps were deplorable

Concerns over sanitation.

Hobos’ jungle

Hobos’ symbols

not a safe place

Kind man lives here

Dangerous neighborhood

Kind woman here- tell a sad story

Good place for a handout

Nasty dog here

Work Camps/ Relief Camps

Intended to handle 2000 men within a year some had 11,000

By the end of the depression 170, 248 men had been taken in.

Workers worked 8 hours a day, 4 hours on Saturday for .20 cents a day.

The physical and psychological conditions within the camps were poor.

Work Camps/ Relief Camps

Families

Families who could not afford food or lodging were broken up

Link to family budget

Parents would sometimes barter their children away to pay for essentials

they could not afford to support them

Unemployment in Canada 1926-1950

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101112131415161718192021222324252627282930

19261927 19281929 19301931 19321933 19341935 19361937 19381939 19401941 1942 19431944 19451946 19471948 19491950

What portion of the Canadian population was unemployed in the following years? Please express each answer as a fraction!

1929 1933 1939 1945

On to Ottawa Trek

April – June 1935 1500 men left the relief camps and gathered in Vancouver

Started a march to Ottawa

They were going to demand better wages and working conditions

The On to Ottawa Trek 1935

The Regina Riots

June 14, 1935 2000 trekkers in Regina

Prime Minister R.B. Bennett (Conservative) proposed a meeting with the leaders- all others would have to stay behind

Bennett offered nothing to them and said the camps were fine

The police attempted to arrest the leaders when the returned to Regina-a riot ensued

I officer died many protesters and police were injured- nothing changed

Bennett was not re-elected and William Lyon Mackenzie King’s Liberal government returned to power

The Regina Riots

Government Response

Before the Depression the government interfered as little as possible with the economy

Believed that a free market would take care of the economy

Churches and communities would take care of societal issues

During the depression the government had to step in and create the following:

a) minimum hourly wages b) standard work weekc) unemployment insurance

Works Cited

"1926-1950 - Extension History, Since 1909." UThink: Blogs at the University of Minnesota. Web. 16 May 2010. <http://blog.lib.umn.edu/extmedia/centennial/19261950/>.

"The Depression - Tracking Time - Canada, by Train - Library and Archives Canada." Welcome to the LIBRARY AND ARCHIVES CANADA Website | Bienvenue Au Site Web BIBLIOTHÈQUE ET ARCHIVES CANADA. Web. 16 May 2010. <http://www.collectionscanada.gc.ca/trains/021006-3110-e.html>.

"Don River Valley Historical Mapping Project." Map & Data Library ? Map and Data Library. Web. 16 May 2010. <http://maps.library.utoronto.ca/dvhmp/don-valley-brickworks.html>.

"Great Depression." Jazz Street Vancouver :: The History of Vancouver Jazz. Web. 16 May 2010. <http://www.jazzstreetvancouver.ca/events/6>.

"The Great Depression of Canada Homepage." Yukon Education Student Network - Home. Web. 16 May 2010. <http://www.yesnet.yk.ca/schools/projects/canadianhistory/depression/depression.html#CAUSES>.

"Hard Times." CBC.ca - Canadian News Sports Entertainment Kids Docs Radio TV. Web. 16 May 2010. <http://www.cbc.ca/history/EPISHOMEEP13LE.html>.

"Hard Times? Not so Much - Emma Peel - Open Salon." Open Salon: You Make the Headlines. Web. 16 May 2010. <http://open.salon.com/blog/emma_peel/2008/12/26/hard_times_not_so_much>.

Rasmussen, From Hannah. "A Student's Guide to the Great Depression." Economics at About.Com -- Your Portal to the World of Economics. Web. 16 May 2010. <http://economics.about.com/od/recessions/a/greatdepression_2.htm>.

"R.B. Bennett, 1930." "R.B. Bennett, 1930." Newfoundland and Labrador Heritage/Patrimoine De Terre-Neuve Et Du Labrador--Newfoundland and Labrador Heritage/Patrimoine De Terre-Neuve Et Du Labrador--Entry Page: Newfoundland and Labrador HeritageEntry Page: Newfoundland and Labrador Heritage . Web. 13 May 2010. . Web. 13 May 2010. <http://www.heritage.nf.ca/law/rb_bennett.html>. <http://www.heritage.nf.ca/law/rb_bennett.html>.

"What Caused the Great Depression?" "What Caused the Great Depression?" Millionaire ActsMillionaire Acts. Web. 17 May 2010. . Web. 17 May 2010. <http://www.millionaireacts.com/1921/what-caused-the-great-depression.html>.<http://www.millionaireacts.com/1921/what-caused-the-great-depression.html>.

"William Lyon Mackenzie King Collection | Laurier Library." "William Lyon Mackenzie King Collection | Laurier Library." Laurier LibraryLaurier Library. Web. 13 May 2010. . Web. 13 May 2010. <http://library.wlu.ca/archives/collections/king>.<http://library.wlu.ca/archives/collections/king>.