SS Chapter 4
To what extent was the Soviet Union affected by the Great Depression? Why would this have been the case?
1922: Russia joined with other communist countries to form the Union of Soviet Socialist Republics (USSR). During the Depression, the Soviet Union's communist economic system insulated it from the economic slowdown. It seemed that the communist system worked while capitalism failed. Stalin robbed people of their political and social freedom and his economic and agricultural policies led to the deaths of millions of people.
What was the CCF? When was it formed? Who was their leader?
1932: Co-operative Commonwealth Federation founded in the Prairie provinces. Canada's first socialist party.Led by J. S. Woodsworth (chosen in Regina in 1933) 1939: CCF formed the Opposition in BC and Saskatchewan
Who was Dufferin Pattullo and what did he do?
1933: BC Liberal premier. Introduced reforms to shorten the workday, increase the minimum wage, and increase relief payments by 20%. Wanted greater provincial spending power. Public works projects were launched; notably Fraser River bridge and a new city hall for Vancouver. Federal government challenged his authority to introduce programs considered to be in the federal domain
Who was Mitch Hepburn and what did he do?
1934: Liberal leader, a populist farmer. Championed the causes of "the little man" and railed against big businesses. Tried to improve Ontario's economy but did little to help the unemployed and was agains unionization.
What was the CBC; when and why was it established?
1936: Canadian Broadcasting Corporation established to combat US influence on Canadians. They produced entertainment programs in French and English. French programs was very popular in Québec, but English listeners still tuned in to popular US shows
What was the National Employment Commission and when was it established? a) What did they recommend and what was the response to their recommendations?
1936: set up to examine the state of unemployment in Canada a) Recommended federal government spend millions of dollars on job creation and training programs. King ended up spending only a fraction of what as recommended
What was the Rowell-Sirois Report? How did it come about and what were its recommendations?
1937: King created Royal Commission on Dominion-Provincial Relations to examine the federal-provincial relations and look into the different responsibilities. Depression caused tension; disagreement over which had the right to collect tax money and which government should pay for social and unemployment assistance. Rowell-Sirois Report was the report of the commission recommending the federal government give the poorer provinces grant. Also recommended federal government bear responsibility for unemployment insurance and pensions
What percentage of Canada's population as unemployed in 1933?
25+%
What other natural disaster took place in the Prairies and how did all of these affect farmers?
A drought in 1929 meant no crops could grow. Mid-spring 1931: As the drought depend, winds began. Millions of hectares of fertile topsoil - dried up by the drought and overarming - blew into the Palliser's Triangle (semi-arid area in souther Alberta and Saskatchewan). Plague of grasshoppers stalled trains and buses and clogged car radiators. Wiped out any crops.
How did Canadians react to Bennett's leadership?
Bennett became a target for anger and frustration. "Bennet barnyard" was a deserted farm, "Bennet blanket" was a newspaper, "Bennett coffee" was roasted wheat, and "Bennett buggy" was an automobile pulled by horses when the owner could no longer afford gas.
What characteristics of Canada's economy made the country vulnerable to international economic conditions?
Canada was heavily dependent on the export of primary resources - particularly wheat from the Prairies and newsprint from BC, Ontario, and Québec. 80% of production on farms, in forests, and in mines were exported. Wheat supply went up because of Argentina and Australia; overproduction led to low farmers' income
What role did international debt from WWI play in furthering the Great Depression?
Countries were unable to pay back loans they borrowed from the US because protectionism limited trade with the US (they relied on this to raise money). Britain and France relied on German reparations but Germany's economy was in ruins and the reparations made it worse.
What segments of Canada's population suffered particularly worse during the Depression?
Country families who were assumed to have livestock and a big garden. Immigrants, Aboriginals, and women suffered
Explain why the Depression actually led to an improvement in living standards for some
Deflation benefited wealthy Canadians with secure jobs as their money was worth more.
Explain equalization payments
Equalization payments are federal transfers of funds from richer to poorer provinces to ensure ever province can offer its citizens the same level of services.
How did the Depression affect the role of women in Canada?
Expected to maintain the home and family. Limited "pink collar" jobs that paid 60% of men's wages. Married women and other women were forced into unwanted retirement or fired. Most were told these measures were taken to provide jobs for men supporting families. Women kept bees to cut down on sugar, expanded gardens, gave up on commercially prepared foods, and picked wild berries. Reused everything. Pregnancy and young children was an issue. PM Bennett sent many of these mothers aid. Vancouver, women's groups such as the Women's Labor League campaigned for more support: milk for babies, allowances for women and children, and medical care for pregnant women
What was the cause - and unique feature - of the Vancouver protest of 1937?
Federal government closed relief camps in 1936 and provincial government reduced relief payments. Protested lack of government support. Conducted "sit-ins" at various buildings. April 1937: protestors occupied Vancouver Art Gallery, main post officer, and the Georgia Hotel. At the post office they were evicted with tear gas
What was the New Deal in the US? What were some of its features?
Franklin Roosevelt introduced a "New Deal" in 1933 that included a series of programs to help create public work programs for the unemployed and for farmers. The Social Security Act introduced old age pension, unemployment insurance, and financial assistance for mothers and children.
What are the characteristics of a market economy?
Free enterprise system: means of production - factories, machinery, and land - are owned by individuals, not the government. They decide what they produce and the prices based on supply and demand
What are the characteristics of a mixed economy?
Government has some involvement in the economy, including the creation of government-owned industries (Canadian National Railways), limitations on workers' rights to strike, and subsidies to support certain industries
Describe the characteristics of the economic cycle
Growth: expansion in many economic activities results in a period of prosperity Decline: slowdown in economy, called a recession or depression (longer and more severe) Recovery: the period following a recession during which value of goods and services rises
What was WLM King's response to the call for government assistance during the years of the Depression?
He believed the situation as temporary and the economy would recover.
What was RB Bennett's plan for dealing with the depression and how effective was that plan?
He was no more in favour of government relief. Nevertheless, he introduced several measures: - Unemployment Relief Act: gave provinces $20 million for work-creation programs; economy didn't improve - "Use tariffs to blast a way" into world markets: raised tariffs by an average of more than 50% to protect Canadian industries; did more harm than good, other nations set up trade barriers against Canada - Prairie Farm Rehabilitation Act: 1935 to help farmers build irrigation systems and reservoirs; however, drought and poverty had already forced may families to leave their farms
What segment of Canada's population was particularly targeted with hostility during the Depression?
Immigrants were treated with hostility when they competed for scarce jobs. By 1935, 28 000 were deported. Chinese population in Vancouver did not qualify for relief payments. By 1932, many were starving. Jewish people are targeted and faced anti-Semitism. Employers often posted signs forbidding them to apply. Clubs, organizations, and resorts barred Jews. Aboriginals were given $5 a month, compared to $19-$60 for whites. Expected to live off the land, though they had been unable to do so for decades. Governments kept taking cut-off lands (1933: transferred land from the Squamish Capilano Indian Reserve to the company building the Lions Gate Bridge)
What is meant by the term buying on margin and what is another term for it? What specifically did it refer to in the 1920s?
Investors bought shares (stocks) believing the company would do well and the value of the stocks would rise. Buying shares "on margin" meant buying shares with only a 10% down payment, assuming when the prices of the stocks increased the remaining 90% of loans would be paid. It is called speculation. Loans for stocks were easily obtained and high demand had driven the price of stocks up beyond their real value
What was the connection between Black Tuesday and people buying on margin? What were the results?
Investors who borrowed heavily to buy shares went bankrupt in a single day. Companies cut back on production or closed their doors when the prices of their goods dropped. People lost their jobs and couldn't find work; couldn't buy things, so factories also let people go.
How did the Great Depression affect Japan and what steps did that country take to offset these affects?
Japan had a colonial empire and developed a strong manufacturing industry. Tariff barriers and decline of international trade greatly affected Japan's economy, which depended on raw materials from the US. It adopted Keynesian economics, an economic theory named for John Maynard Keynes (1883-1946) who advocated government intervention in the economy.Put into action an aggressive plan to expand its territory by invading resource-rich Manchuria in 1931.
Who did King feel should be responsible for providing financial solutions to the problems being experienced?
King said that financial help was the responsibility of municipal and provincial governments. Financial strain of Depression had bankrupted many municipalities.
What was the party platform of the CCF?
Regina Manifesto: supported public ownership of industry and social programs to assist those in need. Opposed free-market economics. Urged government to spend money on public works to create employment
What was Black Tuesday and how did it happen?
October 29, 1919: New York Stock Exchange collapsed, followed by the Toronto and Montréal Stock Exchanges. Investors sold their stocks in order to cash in on high profits, others did so and the stock prices fell. People panicked and began to sell off huge volumes of stocks, making prices drop even further.
Explain how the Depression affected the Canadian government's ability to collect taxes
Only 300 000 out of 11 million could pay income tax in 1939. Married people earning more than $2000 and singles more than $1000 paid tax. People evicted from homes, lost respect
What farming practices led to natural disaster and economic hardship on the Prairies?
Only farming wheat (one-crop farming) took its toil on the and. Farmers replaced native grasses with wheat, using up nutrients. Over cultivation of fields and poor land-use practices contributed to the erosion of soil
Explain the term pogey and describe what it entailed
Pogey (welfare) were government relief payments, sometimes in the form of vouchers for food or other essentials, given those who did not have an alternative source of income. Purposely kept low, never covered expenses - $60 in Calgary and $19 in Halifax per month for a family of five - to encourage job seeking. People had to wait in line for hours, publicly declare their financial failure, swear they did not own anything of value, and prove they were being evicted. Private charities helped by providing used clothing and meals; soup kitchens were set up to help the hungry and homeless
What were the characteristics of RB Bennett's New Deal and what was the response to it?
Prior to the 1935 election, he introduced his version of the New Deal including: - fairier, progressive taxation so people who earned more money paid more tax - insurance to protect workers against illness, injury, and unemployment - legislation fo workplace reforms that regulated work hours, minimum wages, and working conditions - revised old-age pensions to support workers over 65 - agricultural support programs to help farmers and the creation of the Canadian Wheat Board to regulate wheat prices Many saw his change in policy as a desperate attempt to win votes; questioned the value of social insurance programs for people who did not have a job and so could not make a claim
Given what you know about the causes of the Great Depression and wha made the Depression worse, why would Germany have been so negatively affected by these events?
Reparations crippled the economy, which had been ruined by war. To meet payments, government printed large amounts of money, lowering the value of German currency. Price of basic goods began to rise. To control inflation, Britain, France and the US gave Germany better terms, but it only made a modest recovery. The weakened economy was great affected by the Depression.
What comment did King make in response to Conservative criticism of his policies and what was the response to that comment?
Some provincial governments were not being helped by the federal government because King would not give "a five-cent piece" to a Conservative provincial government.
Why was Canada vulnerable to economic conditions in the US?
The US was Canada's biggest trading partner and largest investor.
What are the principles of supply and demand?
The quantity of a product that is available (supply) and the market's desire for that product (demand); the price of the product varies based on supply and demand. (Low supply + high demand = high prices; high supply + low demand = low prices)
Explain the policy of protectionism and how it further affected Canada's economy
US didn't need foreign raw materials; imposed high tariffs. US protectionism (system of using high tariffs to raise the price of imported goods to protect domestic producers) led other countries to do the same. Tariffs caused a slowdown in world trade and exports decreased substantially
In regards to the Union Nationale: a) Who was their leader? Who were their supporters? b) What was their platform?
Union Nationale was a nationalist French-Canadian party a) Maurice Duplessis (Premier until 1959, except from 1939-1944) joined with disillusioned Liberals. Their supporters included the Roman Catholic Church and rural voters. b) Blamed Québec's socio-economic problems on the English minority in Québec, which controlled the province's economy. Based on improved working conditions, social insurance programs, publicly owned power companies, and a system of farm credits. Didn't actually do anything.
How did voters respond to the Bennett government in 1935?
Voters wer frustrated by his inability to deal with the crisis of the Depression. They returned WLM King to power. King did not support government intervention. Believed the economy would improve on its own. Spending money during an economic depression didn't make sense; wanted to wait until economy was strong to introduce these programs,
What was the response among provinces to the Rowell-Sirosis Report?
Weather provinces didn't like the idea,. Provinces thought the recommendations meant a loss of provincial power. Economy had started to turn around; people were finding jobs, WWII meant the recommendations were pushed aside indefinitely or adopted later
What role did overproduction play in bringing about the Great Depression?
When the economy slowed down, companies faced overproduction. They lowered prices and stockpiled goods; then cut back and produced fewer goods, leading to layoffs, which meant people couldn't afford to buy goods, so sales slowed down more
Who generally belonged to the CCF party and what did they believe?
Wide variety of people dissatisfied with the government's response to the Depression. CCF supported a socialist system in which the government controlled the economy so all would benefit equally. Believed that capitalism (private ownership) breeds inequality and greed and caused the Depression.
Explain what work camps (relief camps) were, why they were established, what work was done in them, the pay, and the living conditions
Work camps were camps for single men in an attempt to provide relief from the Depression. They were located deep in the woods, so the men were completely isolated. Men worked on projects such as building roads, clearing land, and digging drainage ditches. They were paid $0.20 a day and given room and board. The food was terrible and the bunks were bug-infested. 170 000 men
Explain the term riding the rails. To whom did this term mainly refer?
Young unemployed men who would drift from one place to another, looking for work. Travelled across the country by "hopping" freight trains, riding on the roof or clinging to the rods underneath the train. Stayed a day or two in shantytowns known as "jungles"
In regards to Social Credit: a) Who was this party's leader? When and where did this party emerge? b) What did the Social Credit party call for?
a) Founded in western Canada. Lead by William "Bible Bill" Aberhart. Won 17 seats in federal election of 1935, 50% of popular vote in Alberta. Remained in power until 1971 under Ernest Manning and Harry Storm b) Social credit; believing that the government should release money into the economy so that people could spend it instead of hoarding them in banks. Promised each citizen a "basic dividend" of $25 per month to buy necessities. Federal government challenged right of a province to issue its own currency and social credit was disallowed by the Supreme Court.
Regarding the On-to-Ottawa Trek: a) What was the Trek about? b) Who was involved? c) When and where did it take place? d) What was the popular response to the Trek? e) What was the government response to the Trek?
a) Rail trip from Vancouver to Ottawa (stopped at Regina) by unemployed men protesting against camp conditions and demanding higher pay. b) Relief Camp Workers' Union and unemployed men. c) 1935: 1000 left the relief camps in the interior of BC and gathered in Vancouver. d) People supported them by donating food and supplies, while others joined the trek. e) The "Red Scare" was still dominant. PM Bennett fear these men would come under the influence of the Communist Party. 1931: Bennett introduced a law outlawing communist agitation. Communist Party leader Tim Buck spent two years in prison. Bennett responded by calling in the RCMP to stop them in Regina; only leaders allowed to continue on to Ottawa to be attacked as troublemakers and communist radicals. RCMP were ordered to clear trekkers from the local stadium they were confined in. Trekkers resisted in the Regina Riot; one officer killed, many injured, 130 arrested.