Download - Canada and the Great Depression
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Canada and the Great Depression
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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 )
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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 )
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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
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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)
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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.
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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.
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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
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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”
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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
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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.
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Effect on average citizens
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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.
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Dust Storm
Link to crop prices
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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
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Grasshoppers
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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
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Riding the Rods/ Riding the Rails:
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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.
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Hobos’ jungle
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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
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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.
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Work Camps/ Relief Camps
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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
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Unemployment in Canada 1926-1950
0123456789
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
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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
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The On to Ottawa Trek 1935
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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
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The Regina Riots
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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
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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>.