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Canada and the Great Depression

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

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Canada and the Great Depression

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  1. Canada and the Great Depression

  2. 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 )

  3. 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 )

  4. 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

  5. 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)

  6. 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.

  7. 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.

  8. 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

  9. 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”

  10. 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

  11. 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.

  12. Effect on average citizens

  13. 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.

  14. Dust Storm Link to crop prices

  15. 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

  16. Grasshoppers

  17. 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

  18. Riding the Rods/ Riding the Rails:

  19. 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.

  20. Hobos’ jungle

  21. 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

  22. 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.

  23. Work Camps/ Relief Camps

  24. 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

  25. Unemployment in Canada 1926-1950 What portion of the Canadian population was unemployed in the following years? Please express each answer as a fraction! 1929 1933 1939 1945

  26. 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

  27. The On to Ottawa Trek 1935

  28. 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

  29. The Regina Riots

  30. 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: • minimum hourly wages • standard work week • unemployment insurance

  31. 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." Newfoundland and Labrador Heritage/Patrimoine De Terre-Neuve Et Du Labrador--Entry Page: Newfoundland and Labrador Heritage. Web. 13 May 2010. <http://www.heritage.nf.ca/law/rb_bennett.html>. • "What Caused the Great Depression?" Millionaire Acts. Web. 17 May 2010. <http://www.millionaireacts.com/1921/what-caused-the-great-depression.html>. • "William Lyon Mackenzie King Collection | Laurier Library." Laurier Library. Web. 13 May 2010. <http://library.wlu.ca/archives/collections/king>.

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