Assess the success of Canadian policies to solve the economic problems caused by the Great Depression.
The economic problems caused by the Great Depression that the Canadian governments sought to solve were most significantly the stagnating growth of the economy; the foreclosure of farms; and the need for relief due to high unemployment. The responses to these problems varied between McKenzie King and Bennett, with McKenzie King originally ignoring the existence of a crisis. Their successes were also varied, although minimal, with World War Two being the main cause of Canada being lifted out of Depression.
Government responses to the stagnating growth of the economy varied – whilst McKenzie King was opposed to any policies that would raise
…show more content…
tariffs and thereby restrict trade, Bennett acknowledged the importance of increasing liquidity within the Canadian economy and chose to impose tariffs on Canadian exports.
Bennett increased tariffs to protect Canadian production, an action that did little to stimulate the economy as it caused a further fall in demand for Canadian goods, removing them from the world market as fewer consumers were able to afford them. Clements in particular argues that Bennett's policy was unsuccessful as he says that the effect of the policy was to limit trade even more. This argument is largely true as the tariffs resulted in a diminished market for Canadian goods. Furthermore, this diminished market resulted in producers of staples being laden with surplus products. It is estimated that in Manitoba, for example, the overall cost of the tariffs in lost revenues was $100 per farm. Whilst the measures may have saved some firms from bankruptcy, they did little to help exports because of the fall in international demand. This led to overproduction and further losses, therefore rendering this …show more content…
policy mostly unsuccessful. On the other hand, one of McKenzie King's key aims of his second term was to restore international trade and he was able to reach an agreement with Roosevelt to reduce high tariffs between the America and Canada in November 1935. This allowed for more trade between the two countries, resulting in higher demand for Canadian goods, thereby reducing the problems of overproduction. It can therefore be argued that whilst McKenzie King's policies during his first term where completely unsuccessful, those during his second term were more successful than Bennett's policy of increasing tariffs. The agricultural problems caused by the Great Depression were met with different responses by Bennett and McKenzie King, although neither saw much success.
Bennett most notably introduced the Farmers' Credit Arrangement Act, which aimed to allow farmers to remain in their farms rather than face eviction through foreclosure. It has been argued, particularly by Clements, that this policy was somewhat successful since it generally benefited the farmers rather than their creditors. However, this argument is only true to some extent as although 36,000 cases had been handled, only $4 million of interest on the debts had been removed from the total indebtedness figure of $159 million. This is a minute percentage, proving that the Farmers' Credit Arrangement Act had a far smaller impact than Bennett anticipated. Furthermore, McKenzie King failed to act in response to the problem of farm foreclosures. Government policies in response to agricultural issues were therefore insufficient in meeting the needs of farmers, indicating that the policies were for the most part
unsuccessful. Both Bennett and McKenzie King attempted to address the need for relief and high unemployment, although their responses varied in terms of action but not in success. Bennett's federal government allocated $20 million for emergency relief to be administered by the provinces and municipalities, which allowed him to maintain his policy of laissez-faire economics as it meant that there was no direct federal government action. This level of relief was not enough though, as it equated to less than $20 per unemployed person. Nevertheless, he designated $28 million in subsequent measures to offer relief and public works – most notably the Unemployed and Farm Relief Act (UFRA), the Public Works Construction Act (PWCA) and relief camps. However, he was criticised by Findlay, who argued that these ideas were taken up in Canada before Bennett introduced them. These measures did not prove adequate in meeting the needs of the unemployed. Too little money was provided through UFRA and unemployment remained high despite the PWCA. Moreover, the work of those in relief camps was often pointless and the workers were paid just 20 cents a day, which was 10% of what the most lowly paid labourer could expect to earn. This confirms that Bennett's policies regarding unemployment and relief were inadequate to meet the problems created by the Depression as his policies did little to lift people out of poverty and into work. McKenzie King was also unable to properly meet these problems. Although he agreed to deficit spending to pay for job creation schemes, this was not his priority. It is consequently easy to contend that both McKenzie King and Bennett's governments were unable to respond adequately to unemployment and relief problems caused by the Great Depression and they had little success in solving these problems. The government approaches to the main economic problems of the stagnating growth of the economy; the foreclosure of farms; and the need for relief due to high unemployment. The measures that were introduced were wholly insufficient and some, such as the increase of tariffs made the problems worse. It was World War Two that lifted Canada out of Depression, through the generation of jobs and increase in demand. Therefore, it is easy to argue that Canadian policies achieved very limited success in solving the economic problems caused by the Great Depression.
Hollingsworth and Tyyska discuss the employment of women in their article, both wage work and work performed outside of the “paid labour force.” (14). They also look at work discrimination of women based on gender and marital status. They argue that disapproval of married women working for wages during the Depression was expressed not only by those in position of power, such as politicians, but also by the general public and labour unions. They suggest that the number of women in the workforce increased as more young wives stayed working until the birth of their first child and older women entered the workforce in response to depression based deprivation. Hollingsworth and Tyyska also give examples of work that married women did that was an extension of their domestic duties such as babysitting for working mothers or taking in laundry. They also state that some women took in boarders, sold extra produce from gardens, or ran make-shift restaurant operations out of their homes.
In the Prairie provinces of Canada, in addition to economic depression was the effect of the nine years of drought and crop failures. When the Great Depression plagued Canada, the country was not ready for it; there are three main reasons why: 1) Seasonal unemployment was predictable since wages for seasonal labour were high enough. 2) Cyclical unemployment and recovery in the past always occurred eventually.
Source I is a quote from the Paris Peace Talks by British Prime Minister; Lloyd George, where he states a desire for Germany to suffer. This line was said after the end of World War I, where nations met up to discuss the Treaty of Versailles or the treaty to end World War I. In that treaty, it claimed that Germany was responsible for the war and included all the punishments for Germany. Britain and France wanted to make Germany hurt, in return from all the losses it’s caused them, like death of loved ones and damaged property. Squeezing an orange until its pips squeak, means to apply intense pressure on one, until it suffers or in Germany’s case, becomes economically and militarily weak. The Treaty of Versailles harshly punished
Canada became increasingly autonomous throughout the 1920's and 1930's. Being established officially as a nation apart from Britain certainly helped, but there were more than just official pieces of paper at play. The negotiation of the Halibut treaty was a large push towards become an autonomous nation from Britain. The final push were the seats Canada was given at various significant events.
Overall, the Great depression was a hard time for most Canadians, and the concept of unemployment insurance brought Canada to the world wide stage. Whether it is Prime Ministers opening relief programs, events which supported the upbringing of our country, the inventions which boosted our economy in giving us more trade, or the Depression in general, the whole period of time starting from the market crash to revival was the event which Canada showed the world that we are strong and not easily crushed. Therefore, the key event in this decade is the Great Depression and the acts towards it.
The history of Canada was flooded with many influential and incredible events, particularly during World War 1 and World War 2. During the 20th century, Canada got more involved in worldwide events. It was a very important period for Canada; it was where they gained their independence and progressed as a country. After this century, Canada was considered an important and powerful country. The three main 20th century events in Canadian history are the battle of Vimy Ridge, the change of woman’s rights and the battle of Juno Beach.
On the day of October 29, 1929 the Great Depression had begun. This was due to the worth of the New York stock market falling intensely. The Great Depression was a time when Canadians suffered extraordinary levels of poverty due to unemployment. It shaped Canadian’s political views, and also their views about their country and role of the government. Canadians joined together in various new political parties, labor groups and other organizations that represented detailed regional, economic or political interest. Canadians scrambled through the crisis with a makeshift blend of private and public charity. Private Citizens in wealthier provinces recognized the dilemma of Saskatchewan and sent hundreds of carloads of fruit, vegetables and clothing westward. This showed that Canada is a crew of kind and supportive individuals.
The Great Depression was a terrible point in Canadian history, and for most of the world. It was a point in time where thousands of people lost their jobs, and even lost their homes because of the depressed economy. Business was booming in the early 1920s, but when companies tried to expand, and therefore issued stocks, the economy was thrown off. Some investors sold their stocks for high prices, and as a result, everyone else followed. With less of a demand, stock prices became fractions of what they used to be, and on October 29, 1929, the New York Stock Exchange collapsed, followed by the Toronto and Montreal Stock exchanges. This collapse of the stock markets caused a depression like which the world had never seen before. It was important for governments to find methods to deal with the depression, but the Canadian government wasn't very successful in its attempts to deal with the Great Depression.
The economic progress Canada made after the war lead to the growth of the country. New industries emerged from innovations of products like automobiles, radios, television, digital computers and electric typewriters (Aitken et al., 315). Canadians quickly adapted back to the “buy now, pay later” strategy rather than careful budgeting during the Great Depression (Liverant). Almost everything that Canadians did was influenced from new inventions; television was the most influential. Canadians conversations, humour, and lifestyle were influenced from television (Aitken et al., 315). Trade relations between the United States and Canada had become more efficient due to the St. Lawrence Seaway. The mass development of the St. Lawrence Seaway, in 1954, was to provide a large wate...
The Great Depression in Canada posed many problems for Canadians. During this period the economy suffered, unemployment rates raised, and farmers struggled through the drought of the Dirty Thirties. The Great Depression truly was an uncontrollable force assisting the shape of present day Canada.
Many Canadians thought the depression was brought about by the wheat crop crash and not the stock market crash because many Canadians and farmers were dependent on the growth of wheat because it made up a majority of their exports, but seeing as the wheat provinces were hit with a severe drought the wheat crops crashed leaving many farmers out of jobs and money, causing a great affect on Canada. The causes of the great depression were due to over-production and over-expansion because Canadian companies expanded their industries of goods so that they could generate more profits. Yet economic activity shrank in the late 20’s and companies were left with a heavier debt and lack of...
The Great Depression was not just a little event in history, hence the word “great”, but a major economical setback that would change Canada, and the world, forever. The word “great” may not mean the same thing it does now; an example of this is the ‘Great’ War. These events were not ‘good’ or ‘accomplishing’ in any way, quite the opposite, but in those times it most likely meant ‘big’. What made it big are many factors, both in the 20’s and 30’s, which can be categorized into three main points: economics, politics and society. With all these events, compressed into ten years, this period of economic hardship of the 1930’s truly deserves the title the “Great Depression”.
When the Great Depression occurred right around 1930, William Lyon Mackenzie King and his government did not respond strongly . Although the depression was evidently obvious, King believed that the economic crisis was temporarily and only patience was needed to overcome it . It took a while for King to realize how the depression was affecting the politics . King believed that welfare was a provincial responsibility and no one else’s . During the depression, all provinces wanted to increase the tax in Ottawa, but he did not understand the concept of it since other provinces were going to use the tax for themselves. King thought that it was necessary for the provinces to take initiative and increase their taxes . As the depression hit rock bottom many Canadians were unemployed. As Canada was changing right in front of his eyes, King’s perspectives did not show change. In one of his speeches he declared, “I submit that there is not evidence in Canada today of an emergency situation which demands anything of that kind” . King did not face with depression in the most orderly matter but he was a great Liberal leader, he kept the Liberals together when the Conservatives were falling apart and new political parties were developed to compete for the votes . During the depression, King held an election that was one of the most important events that occurred in...
The US government’s role in the Great Depression has been very controversy. Different hypothesizes argued differently on the causes of the Great depression and whether the New Deal introduced by the government and President Roosevelt helped United States got out of the depression. I would argue that even though not the only factor, the US government did lead the country into the Great Depression and the New Deal actually delayed the recovery process. I will discuss five different factors (stock market crash, bank failure, tariff and tax cut, consumer spending and agriculture) that are commonly accepted to cause the depression and how the government linked to them. Furthermore, I will try to show how the government prolonged the depression in the United States by introducing the New Deal.
The Great Depression was the deepest and longest-lasting economic downfall in the history of the United Sates. No event has yet to rival The Great Depression to the present day today although we have had recessions in the past, and some economic panics, fears. Thankfully the United States of America has had its shares of experiences from the foundation of this country and throughout its growth many economic crises have occurred. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors ("The Great Depression."). In turn from this single tragic event, numerous amounts of chain reactions occurred.