How do you respond to a How do you respond to a Depression?Depression?

Economic CycleEconomic Cycle

Recovery

Prosperity

Recession

Depression

By the numbers…By the numbers… A depression is different than a A depression is different than a

recession because:recession because: Unemployment drops even further Unemployment drops even further

(usually more than 10% are (usually more than 10% are unemployed)unemployed)

The Gross Domestic Product (GDP) The Gross Domestic Product (GDP) drops more than 10%drops more than 10%

1930s unemployment – 33%1930s unemployment – 33% Drop in GDP – 42%Drop in GDP – 42%

The Depression in CanadaThe Depression in Canada

What to do???What to do??? You might ask, what do we do when You might ask, what do we do when

a recession or depression hits? Who a recession or depression hits? Who is responsible for action?is responsible for action?

Two viewsTwo views• 1929 Prime Minister: William Lyon 1929 Prime Minister: William Lyon

Mackenzie King (Liberal)Mackenzie King (Liberal)• Did not believe there was a “depression” and Did not believe there was a “depression” and

that the problem would eventually pass.that the problem would eventually pass.• "With respect to giving moneys out of the "With respect to giving moneys out of the

federal treasury to any Tory government in federal treasury to any Tory government in this country for these alleged unemployment this country for these alleged unemployment purposes, with these governments situated purposes, with these governments situated as they are to-day, with policies diametrically as they are to-day, with policies diametrically opposed to those of this government, I would opposed to those of this government, I would not give them a five-cent piece." April 3, not give them a five-cent piece." April 3, 19301930

1930: RB Bennett and 1930: RB Bennett and the Conservatives the Conservatives

““one of the greatest assets a man one of the greatest assets a man can have on entering life’s can have on entering life’s

struggle is poverty.”struggle is poverty.”• Proposed some changes to help Canadians Proposed some changes to help Canadians

make it through the Depression:make it through the Depression:• High tariffsHigh tariffs• Large scale spendingLarge scale spending• Make work programsMake work programs• WelfareWelfare

These things These things only led the a only led the a large federal large federal deficit. So deficit. So Bennett had to Bennett had to cut back on cut back on spending and spending and cancel many of cancel many of these programsthese programs

1930 election1930 election 1930 – Bennett defeats King Starts relief camps for unemployed

single men Men worked on public projects and

received 20 cents a day, room and board Bennett also raised tariffs Plan was to force other countries to

lower tariffs This didn’t work

Any way to meet the Any way to meet the needs…needs…

Canadian citizens address the Depression in many different ways

Door-to-door sales Begging Charities and churches Drifting Collecting public relief

Unemployment Relief Camps

Fed. and prov. gov’t passed responsibility to municipalities

Feds wanted nothing to do with Depression

Provinces were helpless This cost King the election

1935 - Bennett’s New Deal

This is the beginning of what is referred to as Canada’s “social safety net”

Progressive taxation Maximum work week Minimum wage Regulation of working conditions Unemployment Insurance Health insurance Pension plan

1935 elections1935 elections Bennett’s failure to improve the economy led Bennett’s failure to improve the economy led

to his defeat in the 1935 elections. to his defeat in the 1935 elections. Mackenzie King was re-elected in 1935. Mackenzie King was re-elected in 1935.

With the worst of the depression over, King With the worst of the depression over, King implemented a couple relief programs: implemented a couple relief programs: National Housing ActNational Housing Act National Employment CommissionNational Employment Commission Trans-Canada Airlines (Air Canada)Trans-Canada Airlines (Air Canada)

The start of the war would be the thing that The start of the war would be the thing that would put an ultimate end to the depression.would put an ultimate end to the depression.

Relief CampsRelief Camps Families were given relief payments for Families were given relief payments for

children until these children reached the age children until these children reached the age of 16. Because of this, most of these young of 16. Because of this, most of these young men left home to reduce the burden on their men left home to reduce the burden on their families.families.

Thousands of unemployed rode freight trains Thousands of unemployed rode freight trains to the west looking for work which didn't to the west looking for work which didn't exist. exist.

The Conservative government of Bennett set The Conservative government of Bennett set up work camps to prevent the growing unrest up work camps to prevent the growing unrest among this wandering mass of young among this wandering mass of young unemployed workersunemployed workers

The camps were located in remote The camps were located in remote areas such as northern Ontario and areas such as northern Ontario and B.C.'s interior. B.C.'s interior.

Inmates called these camps "slave Inmates called these camps "slave camps". They lived on war surplus camps". They lived on war surplus clothing, bunked in tar-paper clothing, bunked in tar-paper shacks, ate army rations and were shacks, ate army rations and were forced to work six and a half days a forced to work six and a half days a week for twenty cents a day. week for twenty cents a day.

Relief CampsRelief Camps Due to the conditions these workers found Due to the conditions these workers found

themselves in, they formed the Relief Camp themselves in, they formed the Relief Camp Workers Union (RCWU) in 1932Workers Union (RCWU) in 1932

In the spring of 1935, RCWU went on strike. In the spring of 1935, RCWU went on strike. They filled the streets of Vancouver They filled the streets of Vancouver

shouting "Work & wages" and "When Do We shouting "Work & wages" and "When Do We Eat?". Eat?".

They demanded real work wages, better They demanded real work wages, better food, clothing and shelter, and an end to food, clothing and shelter, and an end to military discipline. military discipline.

Despite the overwhelming public Despite the overwhelming public support of "our boys", the federal support of "our boys", the federal government refused to negotiation government refused to negotiation with strikers. with strikers.

After this, the strikers voted to take After this, the strikers voted to take their grievances to Parliament Hill in their grievances to Parliament Hill in Ottawa.Ottawa.

This mass journey to Ottawa was This mass journey to Ottawa was known as the “On-to-Ottawa” Trekknown as the “On-to-Ottawa” Trek