3.2 from boom to_bust_website

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  • 1. From Boom to Bust

2. Election of 1921Mackenzie King was electedPrime Minister of Canada and ledCanadas first minority governmentKing announced that Canada would nowsign its own international agreementsThe first was the Halibut treaty of 1923signed between Canada and the UnitedStates 3. 1921-1925Between 1921 and 1925 the depression inCanada easedAutomobile factories and mines helped toease the tensionsWhen King was elected in 1921 he hadpromised the Maritimes many things,which he did not live up to 4. Election 1925 King lost much support in the East and as aresult, the election of 1925 saw the Liberals finishsecond to the Conservatives who failed to win amajority There was also much pressure from the UnitedStates to stop Canadians from selling liquorSouth of the border where prohibition was stillin effect. Because of this lack of a majority King refused todissolve his parliament 5. King-Byng CrisisIt became evident that some of Kingsministers were protecting the individualsand even profiting off of the illegal liquorsales to the United StatesKing approached Governor General LordByng, and requested that an election becalled only months after one had just beenheld! 6. King-Byng Crisis contdByng refused to concede to Kingsdemands and rather than face his ownparty, King chose to resign.In 1926, Arthur Meighen took over asPrime Minister of Canada, reluctantlybecause he had not won by election.The liberals and King argued that therehad been a violation of the Constitution 7. King-Byng Crisis contdAlthough no violation of the Constitutionarose, King managed to convince theProgressives the Governor General waswrong to not support the PM.Because the Progressives had originallysupported the Conservatives, Byng wasforced to call an election.Sept 14, 1926, King won majority. 8. BoomThe outcome of the 1926 election was duein large part to prosperityWorkers in factories North and South ofthe border were pouring out radios,refrigerators, cars and other consumerproductsGrand hotels were being built across thecountry drawing American tourists 9. Americanization Prosperity came from a newsource Canada had formerly tradedEast and West with Britainand Asia Britain could no longerafford to invest in Canadafollowing the war. The United States had madea lot of money from the warand was looking to Canadaas a consumer market, andvice versa 10. Americanization Contd Many American companies created branchplants in Canada to avoid tariffs. Many highways were built linking Canada tothe United States, and we began driving on theright side of the road Air travel, radio, and telephone links began tonetwork into the U.S. Average work week was reduced from 50-60hours per week to 44-50 hours increasing leisuretime substantially 11. The Roaring 20sMore and more powers being turned overto provincial governmentsWomen voters demanded pensions forwidows, low income mothers, and thedisabledMuch of Canada relied on naturalresources which fell under provincialjurisdiction. 12. The Roaring 20s Quebec, BC, and Ontario were the big winnersunder this system In 1929 after five years of good times, theaverage household income was $1200 dollars. Canadians read American books and watchedAmerican movies Emergence of service clubs such as Kiwanis andKnights of Columbus 13. American entertainment at its finest: what we wa 14. The Roaring 20sA nation of 10 million was buying 2million movie tickets a weekAmerican pro baseball became the bigpass time in North AmericaThe NHL had 6 teams, (2 Canadian)Artwork became prominent and worksuch as that by the Group of 7 and EmilyCarr became well known. 15. Red Maple by A.J. Jackson 16. Roots of DepressionCanadas prosperity in the 1920s had twogreat flaws:Most Canadians could not afford the massgoods being producedCanada was a resource export economy,meaning we were heavily dependent onthe world economy 17. Signs of SicknessThe wheat market had been dominated byCanada for much of the 1920s howevermany other countries were now exportingDrought destroyed much of the 1929 cropin Canada, and wheat prices were fallingquickly from $2 to $1.09 per bushel 18. Black Tuesday Europe had no money to buy Canadian goods US raised tariffs to highest ever to protect theirown goods Canadian factories began to close Shareholders in companies began to sell andprices fell quickly October 29, 1929 the stock market crashed 19. R.B. Bennett The new Conservative leader inCanada King was convinced that Bennettwas trying to blame the depressionon him Most people thought the depression would beover in months. King announced that Ottawa had financial aidfor western farmers, but not even a five centpiece for conservative supporters. 20. The Business Cycle The business cycle is marked by three stages 1. The first stage is a period of prosperity where the economyapproaches full employment. This stage is often accompaniedby inflation as full employment and high income levels driveup the price of labour and goods. 2. In stage two the economy slows down bringing about arecession. Few new jobs are created and some jobs are lost, ascompanies reduce their production of goods and services.This is known as cyclical unemployment. 3. The final stage is a period of economic recovery whereproduction increases in response to increased consumerdemand. New jobs are created and the cycle starts over.A depression occurs when the period of economic decline isprolonged and severe. During a depression prices of goodsand services fall dramatically. This is known as deflation.Wages also fall. Generally wages fall faster than pricesduring a depression 21. An Example of the Economic CycleNote how the unemployment always goes upand down, with varying severity.