Transcript Canada in the 1920s and the Great Depression

Canada in the 1920s and
the Great Depression
IB Objectives
Mackenzie King
RB Bennett
IB Paper 3 Sample Questions
In what ways, and for what reasons, did
the relationship between Canada and
Britain change between 1900 and 1931?
“The political and economic impact of the
First World War on Canada was more
positive than negative.” How far do you
agree with this judgment?
IB Paper 3 Sample Questions
Analyse the main developments in
Canada’s economic relations with the
United States in the first half of the
twentieth century.
Analyse the short-term and long-term
effects of the First World War on the
economic and political development of
Canada.
IB Paper 3 Sample Questions
Analyse the impact on Canada of
participation in the First World War.
To what extent did the First World War
contribute to the emergence of the
movement towards greater sovereignty for
Canada?
Lecture Outline
I.
Canada in the 1920
A. Effects of World War I
B. Economic Relations with the U.S.
C. Labor
D. Canadian Independence
II. Canada during the Great Depression
Key Terms
OBU
Statute of Westminster
Richard Bedford Bennett
Mackenzie King
Canada Enters the War
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When the war broke out in 1914, Canada
entered automatically as part of the British
Empire.
In October 1914 more than 30,000
Canadian soldiers were shipped to
Europe.
The war caused conflict between French
and English Canadians.
Impact on Canada
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The Economy
60,000 Canadians were killed in action
and around 200,000 were wounded out of
about 625,000 Canadian soldiers.
Effects of World War I
The transition from a war time to peace
time economy led to a brief burst of
inflation where prices doubled from their
pre-war average, and then to a severe
recession that lasted until 1923.
Grain prices fell by 1/3, however they were
still high enough to encourage farmers to
expand production, and Canada became
the world’s largest exporter of wheat.
Population
During the 1920s about 1 million people
immigrated to Canada with most of them
becoming part of the urban industrial
workforce.
By the end of the decade, British people
made up half of the population and French
people were a little over 28%
Economic relations with the U.S.
U.S. owned 1/3 of Canada’s pulp
production
U.S. capital was vital for the expansion of
the Canadian mining industry
Ford, Chrysler, and GM established auto
production plants in Canada and produced
about 75% of all cars in the country.
Economic Relations
Oil and natural gas was discovered in
Alberta in 1914 and Canada became one
of the world’s larges producers of
petroleum.
By the early 1920s, the U.S. had replaced
Britain as Canada’s number one trading
partner.
Labor
During the war labor unions had doubled
their membership and economic troubles
during 1918-1922 caused many workers to
go on strike.
In March 1919 western labor leaders met
at Calgary and organized into the One Big
Union (OBU)
OBU
The OBU was a socialist organization that
was inspired by the Communist success in
Russia in 1917.
The Calgary delegates called for a general
strike across Western Canada and in May
1919 30,000 unionized workers in
Winnipeg went out on strike and shut
down the city.
“Bloody Saturday”
On June 21 in Winnipeg—”Bloody
Saturday”—two workers were killed and
30 injured by the Mounties.
The strike was broken and the military
took control of the city.
This caused Canadian unions to decline in
power and lose membership during the
1920s.
Canadian Autonomy
In 1917 Britain invited prime ministers from its
empire to join the British Cabinet to form an
Imperial War Cabinet to coordinate the war
effort.
Britain also recognized Canada as an
autonomous nation of an Imperial
Commonwealth.
After WWI, Canada had control of its armed
forces and has influence on Imperial matters that
concerned its well-being.
Statute of Westminster
Officially recognized Canada’s
independence in 1931
Also gave independence to Australia, New
Zealand, South Africa, Irish Free State,
and Newfoundland.
Causes of the Great Depression in
Canada
Decline in investment and demand in
industry
Shrinkage of agricultural markets
A drought and subsequent prairie
dustbowl
A grasshopper invasion in 1937
Effects of the Great Depression
About 27% of non-agricultural workers
were unemployed and the total
unemployment probably exceeded 50% at
the height of the depression.
Agricultural income shrank by 75%.
Impact of tariffs
The Hawley-Smoot Tariff in the U.S. in
1930 was just one of several measures
that led to a drastic decline in exports,
which, prior to the crash, accounted for
more than a third of Canada’s nation
income.
Between 1928 and 1933, annual percapita income in Canada declined by 48%
from $471 to $247.
Richard Bedford Bennet
In the election of 1930
Bedford’s
Conservative party
won control of the
Canadian
government.
He believed that selfhelp was better than
public assistance.
Bennett
He raised the tariff by almost 50% causing
the US to retaliate and Canada’s foreign
trade decline by two-thirds from 19291933
By 1935 it was clear that the Depression
was not going away so he created his own
“New Deal” based off of FDR’s.
Bennett
Parliament enacted unemployment
insurance, minimum wages and a
maximum 48 hour work-week
Federal government created the Bank of
Canada
His reforms were too late and his party lost
the 1935 election and the Liberal party of
Mackenzie King regained power.
Mackenzie King
Most of Bennett’s reforms had been found
unconstitutional and King did not
implement any new social policy initiatives.
By 1938 the King government began to
stimulate the economy with deficit
spending.