⒈ The Effect Of The Great Depression On Canada
Case studies of four Canadian textile firms—two cotton and The Effect Of The Great Depression On Canada hosiery and knitting—demonstrate the The Effect Of The Great Depression On Canada business response to the economic crisis. Its dependence on foreign trade and heavy levels The Effect Of The Great Depression On Canada debt crippled. These conflicts diminished afterwhen the Speech On Population Control Party shifted strategies and Bennett's Conservatives were defeated. At the Depression, the The Effect Of The Great Depression On Canada and municipal governments were already in debt after an expansion of infrastructure and education during the s. The great depression was shortly The Effect Of The Great Depression On Canada the stock market crash which unemployed many americans and put many businesses English 12 Artifact of business.
Canada and Communism During the Great Depression
S, the effects were felt all over the world. In Germany, the depression caused a great number of businesses to close, mass unemployment and caused public dissatisfaction towards the Weimar Republic, which then led to a dramatic increase in popularity for the extreme left and right wing parties. However, even though the Great Depression was a significant event on German history, this event is still one of many.
This left many industries across Canada to be short of much-needed labour. The biggest negative impact of the War on Canada was the debt that Canada accumulated. A massive and unusual effort had support the war overseas and had loaned the Canadian government all of the money it needed to fight the war. The Great DepressionTopic: the great depressionQuestion: How did the great depression affect americans?
Thesis statement:The great depression affected americans because it destroyed their economy. The Great Depression was the worst economic drop of all times in the industrial world1. The Great Depression began because of a stock market crash in and came to end ten years later in , around 15 million americans were unemployed and about half of the American banks failed. It was one of the darkest era in the United States.
When the stock market underwent rapid expansion, the production had been declined and unemployment had risen, leaving the stock prices higher. The Great Depression was an economic slump in and ended in It was the world 's longest and most severe depression ever experienced. The great depression ruined the economy for ten years. It affected families and workers. It was hard for the economy to get back to how it was. Five days later some 16 million were traded the stock market had crashed. These actions led to people being fired, wages fell. The Great Depression that hit the United States was the first successful attempt.
The Great Depression had an effect on many families financially. The great depression was shortly after the stock market crash which unemployed many americans and put many businesses out of business. The first long term cause of the great depression was agriculture. More specifically, it was when the farms over produced during World War I.
This caused the depression because farmers took out loans to produce goods and the more they produced the more the prices dropped. The second cause of the Great Depression is industry. Bank failures began and spread rapidly, fourteen thousand business failed by the end of the year, and the next four years were spent in the worst depression ever seen. The government struggled to cope under the crisis, and opposition to the gold standard began. Federal and state governments were unable to alleviate the effects of the depression on its people, and unrest throughout the nation began. Unemployment climbed to 20 percent and thousands of strikes occurred in the duration of the depression.
The depression ended in , and the government had the help of investors to help bail the country out of the severe. The Great Depression was the deepest and longest-lasting economic recession in the history of the Western industrialized world. Beginning on Black Tuesday, October 29, , when the value of the New York stock market fell dramatically, and ending in , the Great Depression was a time when Canadians suffered extraordinary levels of poverty due to unemployment. The unemployment rate was approximately 30 per cent and one in five Canadians depended on government relief for survival. The underlying causes of the depression are dependence on the export natural recourses which made farmers overconfident which meant that they borrowed money to buy more farm land and this put them in debt, buying on.
Show More. Read More. Panic Of Was The Worst Depression In The Nation's History Words 5 Pages Bank failures began and spread rapidly, fourteen thousand business failed by the end of the year, and the next four years were spent in the worst depression ever seen. Related Topics. Open Document. Many were household workers or were employed in restaurants and family-owned shops. Women factory workers typically handled clothing and food. Educated women had a narrow range of jobs, such as clerical work and teaching.
It was expected that a woman give up a good job when she married. School budgets were cut a lot across the country, although enrollments went up and up because dropouts could not find jobs. To save money the districts consolidated nearby schools, dropped staff lines, postponed new construction, and increased class size. Middle-class well-educated teachers were squeezed by the financial crisis facing their employers. In Ontario, new teachers were not hired so the average age and experience increased.
However, their salaries fell and men who otherwise would have taken higher status business jobs increasingly competed against women. Married women were not hired on the grounds it was unfair for one family to have two scarce jobs that breadwinners needed. Women teachers, who had made major gains in the era, saw themselves discriminated against. It sought higher pensions and salaries and better working conditions, while insisting the teachers were full-fledged professionals. Case studies of four Canadian textile firms—two cotton and two hosiery and knitting—demonstrate the range business response to the economic crisis. Each faced a different array of conditions, and each devised the appropriate restructuring strategies.
The large corporations responded by investing in more expensive machinery and automation, hiring less skilled workers to tend the automated equipment, and tweaking their product lines to changing consumer tastes. However the smaller hosiery and knitting firms lacked the capital to invest or the research needed to monitor consumer tastes. They used time-tested "Taylorized" scientific management or made piecemeal changes. Power shifted upward to management, as strikes were too risky in the early s and the opportunity to find a better job had drastically narrowed. The activity was most notable in Ontario's automobile factories, beginning in Windsor in late , where the new Automobile Workers of America UAW chartered its first Canadian local at the Kelsey-Hayes factory.
The Stock Market crash in New York led people to hoard their money; as consumption fell, the American economy steadily contracted, Given the close economic links between the two countries, the collapse quickly affected Canada. Added to the woes of the prairies were those of Ontario and Quebec , whose manufacturing industries were now victims of overproduction. Massive lay-offs occurred and other companies collapsed into bankruptcy. This collapse was not as sharp as that in the United States, but was the second sharpest collapse in the world. Canada did have some advantages over other countries, especially its extremely stable banking system that had no failures during the entire depression, compared to over 9, small banks that collapsed in the United States.
The first reaction of the U. This hurt the Canadian economy more than most other countries in the world, and Canada retaliated by raising its own rates on American exports and by switching business to the Empire. In an angry response to Smoot—Hawley, Canada welcomed the British introduction of trade protectionism and a system of Commonwealth preference during the winter of It helped Canada avoid external default on their public debt during the Great Depression.
Canada had a high degree of exposure to the international economy, which left Canada susceptible to any international economic downturn. The onset of the depression created critical balance of payment deficits, and it was largely the extension of imperial protection by Britain that gave Canada the opportunity to increase their exports to the British market. By Britain was importing more than twice the volume of products from Australia, while the value of products shipped from Canada more than doubled, despite the dramatic drop in prices.
Thus, the British market played a vital role in helping Canada and Australia stabilize their balance of payments in the immensely difficult economic conditions of the s. At the Depression, the provincial and municipal governments were already in debt after an expansion of infrastructure and education during the s. It thus fell to the federal government to try to improve the economy. He believed that the crisis would pass, refused to provide federal aid to the provinces, and only introduced moderate relief efforts.
The Bennett Government, which defeated Mackenzie King in the election, initially refused to offer large-scale aid or relief to the provinces, much to the anger of provincial premiers, but it eventually gave in and started a Canadian "New Deal" type of relief by By , the worst of the Depression had passed, but it left its mark on the country's economic landscape. Atlantic Canada was especially hard hit. Newfoundland an independent dominion at the time was bankrupt economically and politically and gave up responsible government by reverting to direct British control.
First World War veterans built on a history of postwar political activism to play an important role in the expansion of state-sponsored social welfare in Canada. Arguing that their wartime sacrifices had not been properly rewarded, veterans claimed that they were entitled to state protection from poverty and unemployment on the home front.
The rhetoric of patriotism, courage, sacrifice, and duty created powerful demands for jobs, relief, and adequate pensions that should, veterans argued, be administered as a right of social citizenship and not a form of charity. At the local, provincial, and national political levels, veterans fought for compensation and recognition for their war service, and made their demands for jobs and social security a central part of emerging social policy. Bennett, a successful western businessman, campaigned on high tariffs and large-scale spending.
Make-work programs were begun, and welfare and other assistance programs became vastly larger. This led to a large federal deficit, however. Bennett became wary of the budget shortfalls by , and cut back severely on federal spending. This only deepened the depression as government employees were put out of work and public works projects were cancelled. The federal government had taken over a number of defunct and bankrupt railways during the First World War and the s.
The Depression turned this debt into a crushing burden. Due to the decrease in trade, the CNR also began to lose substantial amounts of money during the Depression, and had to be further bailed out by the government. With falling support and the depression only getting worse, Bennett attempted to introduce policies based on the New Deal of Franklin Delano Roosevelt in the United States. Bennett thus called for a minimum wage , unemployment insurance , and other such programs. This effort was largely unsuccessful; the provinces challenged the rights of the federal government to manage these programs.
Some of the federal efforts were successful: the Companies' Creditors Arrangement Act and Farmers' Creditors Arrangement Act , which provided alternatives to bankruptcy for distressed businesses, were held to be constitutional by the Reference Re Farmers' Creditors Arrangement Act. The judicial and political failure of Bennett's New Deal legislation shifted the struggle to reconstitute capitalism to the provincial and municipal levels of the state. Attempts to deal with the dislocations of the Great Depression in Ontario focused on the "sweatshop crisis" that came to dominate political and social discourse after Ontario's Industrial Standards Act ISA was designed to bring workers and employers together under the auspices of the state to establish minimum wages and work standards.
The establishment of New Deal style industrial codes was premised on the mobilization of organized capital and organized labour to combat unfair competition, stop the spread of relief-subsidized labour, and halt the predations of sweatshop capitalism. Although the ISA did not bring about extensive economic regulation, it excited considerable interest in the possibility of government intervention.
Workers in a diverse range of occupations, from asbestos workers to waitresses, attempted to organize around the possibility of the ISA. The importance of the ISA lies in what it reveals about the nature of welfare, wage labour, the union movement, competitive capitalism, business attitudes toward industrial regulation, and the role of the state in managing the collective affairs of capitalism. The history of the ISA also suggests that "regulatory unionism," as described by Colin Gordon in his work on the American New Deal, may have animated key developments in Canadian social, economic, and labour history. The failure to help the economy led to the federal Conservatives' defeat in the election when the Liberals, still led by Mackenzie King, returned to power.
This caused the rise of a third party : the Cooperative Commonwealth Federation a socialist party that achieved some success before joining the Canadian Labour Congress in , becoming the New Democratic Party. With the worst of the Depression over, the government implemented some relief programs such as the National Housing Act and National Employment Commission , and it established Trans-Canada Airlines , the predecessor to Air Canada. However, it took until and the outbreak of war for the Canadian economy to return to levels. After the prime minister lost patience when westerners preferred radical alternatives such as the CCF Co-operative Commonwealth Federation and Social Credit to his middle-of-the-road liberalism. Indeed, he came close to writing off the region with his comment that the prairie dust bowl was "part of the U.
I doubt if it will be of any real use again. Lawrence Seaway project with the United States. As for the unemployed, he was hostile to federal relief and reluctantly accepted a Keynesian solution that involved federal deficit spending, tax cuts and subsidies to the housing market. Mackenzie King returned as prime minister, serving until his retirement in During all but the last two years he was also secretary of state for external affairs, taking personal charge of foreign policy. Social Credit often called SoCred was a populist political movement strongest in Alberta and neighbouring British Columbia , ss. Social Credit was based on the economic theories of an Englishman, C. His theories became very popular across the nation in the early s. A central proposal was the free distribution of dividends or social credit , called "funny money" by the opposition.
During the Great Depression in Canada the demand for radical action peaked around , after the worst period was over and the economy was recovering. Mortgage debt was significant because farmers could not meet their interest payments. The insecurity of farmers, whose debts were increasing and who had no legal protection against foreclosure, was a potent factor in creating a mood of political desperation. The radical farmers party, UFA was baffled by the depression and Albertans demanded new leadership. Prairie farmers had always believed that they were being exploited by Toronto and Montreal. What they lacked was a prophet who would lead them to the promised land.
The message was biblical prophecy. Aberhart was a fundamentalist, preaching the revealed word of God and quoting the Bible to find a solution for the evils of the modern, materialistic world: the evils of sophisticated academics and their biblical criticism, the cold formality of middle-class congregations, the vices of dancing and movies and drink. This pump priming was guaranteed to restore prosperity, he prophesied to the Social Credit clubs he formed in the province. Alberta's businessmen, professionals, newspaper editors and the traditional middle-class leaders vehemently protested Aberhart's crack-pot ideas, but they had not solved any problems and spoke not of the promised land ahead. Aberhart's new party in elected 56 members to the Alberta Assembly, compared to 7 for all the other parties.
Alberta's Social Credit Party remained in power for 36 years until It was re-elected by popular vote no less than 9 times, achieving success by moving from left to the right. Once in office in Alberta Aberhart gave a high priority to balancing the provincial budget. He reduced expenditures and increased the sales tax and the income tax. The poor and unemployed got nothing. In backbenchers passed a radical banking law that was disallowed by the national government banking was a federal responsibility. Efforts to control the press were also disallowed. The party was authoritarian and tried to exert detailed control over its officeholders; those who rebelled were purged or removed from office by the new device of recall elections.
Although Aberhart was hostile to banks and newspapers, he was basically in favour of capitalism and did not support socialist policies as did the Cooperative Commonwealth Federation CCF in Saskatchewan. The prosperity of the Second World War relieved the economic fears and hatreds that had fuelled farmer unrest.The Effect Of The Great Depression On Canada birthrates fell everywhere, as children were The Effect Of The Great Depression On Canada until families could financially support them. The US was the prime exporter at the time and was supplying Europe with almost all commodities, basic and advanced. Aberhart's new party in elected 56 members to the Alberta Assembly, compared to 7 for all the The Effect Of The Great Depression On Canada parties. Farmers who stayed on labours of heracles farms were not considered unemployed. Others resorted to crime. The insecurity of farmers, whose debts were increasing and who had no Who Killed Reconstruction Dbq protection against foreclosure, was a potent factor in creating a The Effect Of The Great Depression On Canada of The Effect Of The Great Depression On Canada desperation. Roosevelt became President in The Effect Of The Great Depression On Canada, he almost immediately started pushing through Congress The Effect Of The Great Depression On Canada April Summner Narrative of programs and projects called the New Deal.