Canada in the “Dirty Thirties”
In October of 1929, the New York Stock Market crashed. This date is still known as “Black Tuesday”. This event sent in motion a chain of reactions that culminated in a dark period of twentieth century history known as the Great Depression.
Neither Canada nor the United States had a social welfare system at this time. There was no minimum wage, pension plans, welfare, or Employment Insurance. All this changed by the end of the 1930’s.
The dissatisfaction with the government during the Depression resulted in a rise of a third partyin Canada. Elements of the progressive left banded together to form the Cooperative Commonwealth Federation (CCF), a socialist party that was the precursor to the New Democratic Party. J.S. Woodsworth, the party's leader, was vocal in the Canadian House of Commons, and CCF candidates regularly won a portion of seats in provincial and municipal elections.
Possible Causes of the Great Depression in Canada:
Over Production and Expansion - Canada's companies expanded their industries so they could handle more, but unfortunately didn't get the significant demand for goods and services and were forced to fire workers and diminish costs.
Dependence on Few Primary Products - Canada's decrease in natural resources created a significant drop in sales causing an economical depression.
Dependence on the United States - Due to the dependency Canada had on the U.S., when an economic depression hit the States, Canada was thrust into one as well.
High Tariffs - Canada's efforts to get out of a recession by raising export tariffs only backfired due to competition from other countries and Canada's lack of variety in its exports.
Too Much Credit - Canadians bought too much on lease and credit including stocks. Therefore when the stock market crashed (partly due to the credit buying), Canadians were in debt and faced a trying time as they attempted to sell their personal belongings or were having their half paid-off possessions repossessed.
Terms to Know:
Keynesian Economics: The belief that government needs to jump-start the economy by putting people back to work in tough times. Once working, people will start spending money again and the economy will right itself. John Maynard Keynes – British economist.
Laissez-faire Economics: the belief that the economy should take care of itself. Governments should keep their involvement to a minimum, only acting as a regulatory body.
“Pogey”: government relief payments given to those who had no alternative source of income. Result – lots of ‘shame and blame’ associated with those who took relief. Many committed suicide.
“Riding the Rods” and “Rail Hopping” – terms used to describe itinerant workers who moved about on the railways. A very dangerous form of travel, due to ‘railroad bulls’ who patrolled the tracks and murdered people who travelled illegally, as well as death due to injury jumping on and off the cars.
“Jungles” – shanty towns made of cardboard, tin, and old freight cars on the edges of cities where itinerant workers lived.
“On-To-Ottawa-Trek” – Over one thousand men marched to Ottawa from work camps to protest the conditions and the wages in the work camps (work camps were set up to provide work, but often took advantage of the men by charging them for services or making them work back-breaking hours).
Bennett responded by sending out the RCMP to break up the protest. The conflict got bloody and several men died as a result.
Disenfranchised Groups: women, Jews, Chinese, Aboriginals, Eastern Europeans – were forced to beg for food. Many of them starved to death. Many Caucasian Canadians blamed their problems on immigrants taking their jobs.
Changes in Government During the 1930’s
Prime Minister King would not assist the provinces with the problem of unemployment. Result: Mackenzie King lost the election of 1930 to R.B. Bennett, who promised aid.
What did Bennett’s government do to ease the effects of the Depression?
1) Set up Unemployment Relief Corps: work camps for single, unemployed men. Men worked for .20 cents a day on projects such as building roads.
2)Raised tariffs on Canadian goods to try to protect Canadian industry. Good idea – bad implications. The U.S. responded in kind.
3)In 1935, he introduced a Canadian version of Roosevelt’s New Deal called Bennett’s New Deal. Among other things it called for progressive taxation (the more you make – the more you pay), regulated work hours per day, set minimum wage, established unemployment insurance, provided agricultural support, and revised the old age pensions.
4)All of this was too little too late. Trouble was brewing.