Chapter 4: The Dirty Thirties (the Great Depression)

Chapter 4:Chapter 4:

The Dirty ThirtiesThe Dirty Thirties

(the Great Depression)(the Great Depression)

Stock Market CrashStock Market Crash

►The North American Economy was The North American Economy was booming from the latter half of the 1920s booming from the latter half of the 1920s until…until…

►Tuesday, October 29, 1929 when the NY Tuesday, October 29, 1929 when the NY Stock Exchange collapsed.Stock Exchange collapsed.

Causes of the Great Causes of the Great DepressionDepression

(Write several notes on each point from (Write several notes on each point from your text)your text)

►OverproductionOverproduction►Canada’s Reliance on Exporting Staple Canada’s Reliance on Exporting Staple

ProductsProducts►Canada’s Dependence on the U.S.Canada’s Dependence on the U.S.►The Stock Market CrashThe Stock Market Crash►Economic Protectionism and TariffsEconomic Protectionism and Tariffs► International Debt After the First World WarInternational Debt After the First World War

OverproductionOverproduction

►More goods were being produced than More goods were being produced than were being sold.were being sold.

►At first, manufacturers continued to At first, manufacturers continued to stockpile goods, then began cutting back stockpile goods, then began cutting back on production.on production.

►This decrease in production led to layoffs This decrease in production led to layoffs in factories, which meant less income for in factories, which meant less income for families, and less spending on goods.families, and less spending on goods.

Canada’s Reliance on Canada’s Reliance on Exporting Staple ProductsExporting Staple Products

►Major weakness for CanadaMajor weakness for Canada►Two primary resources exported: Two primary resources exported: wheatwheat from from

the prairies and the prairies and newsprintnewsprint from BC, Ont, Qbc. from BC, Ont, Qbc.►Canada supplied 40% of the world demand Canada supplied 40% of the world demand

for wheat and 65% of the demand for for wheat and 65% of the demand for newsprint.newsprint.

►As international markets reduced their As international markets reduced their demand for products people lost jobs.demand for products people lost jobs.

Canada’s Dependence on the Canada’s Dependence on the U.S.U.S.

►Canada was hit hard because of its Canada was hit hard because of its close ties to the US economy.close ties to the US economy.

►US had become Canada’s biggest US had become Canada’s biggest trading partner and largest investor.trading partner and largest investor.

►When the US econ crashed Canada’s When the US econ crashed Canada’s econ felt the effects.econ felt the effects.

The Stock Market CrashThe Stock Market Crash► In the 1920s investors were buying stocks In the 1920s investors were buying stocks

‘on margin’ to cash in on the high profits of ‘on margin’ to cash in on the high profits of the stock market.the stock market.

► ‘‘on margin’ (loans) – buying shares with on margin’ (loans) – buying shares with only a 10% down payment, assuming that only a 10% down payment, assuming that as the stock prices kept rising the other as the stock prices kept rising the other 90% would be paid with the profits.90% would be paid with the profits.

►The rush to get rich quickly drove the price The rush to get rich quickly drove the price of stocks up beyond their real value.of stocks up beyond their real value.

►When cautious investors started selling When cautious investors started selling their stocks in order to cash in on high their stocks in order to cash in on high profits, other followed their lead causing profits, other followed their lead causing the value to drop.the value to drop.

Economic Protectionism and Economic Protectionism and TariffsTariffs

►US imposed high tariffs (taxes) on foreign US imposed high tariffs (taxes) on foreign goods coming into their country.goods coming into their country.

►The tariffs were meant to protect the US The tariffs were meant to protect the US domestic market by making foreign domestic market by making foreign goods more expensive.goods more expensive.

►This had harmful effects, as other This had harmful effects, as other countries imposed their own tariffs in countries imposed their own tariffs in response to the US.response to the US.

►Tariffs caused a slowdown in world trade Tariffs caused a slowdown in world trade as opportunities for export shrank. as opportunities for export shrank.

International Debt After the International Debt After the First World WarFirst World War

►Germany could not pay back its debt after Germany could not pay back its debt after the Treaty of Versailles because its econ the Treaty of Versailles because its econ was in ruins.was in ruins.

►The huge payments it had to make to The huge payments it had to make to Great Britain and France to compensate for Great Britain and France to compensate for war damages stunted its recovery effort.war damages stunted its recovery effort.

►France & Great Britain counted on the France & Great Britain counted on the reparations to pay back their own war reparations to pay back their own war debts owed to the US, which they were debts owed to the US, which they were demanding.demanding.

Desperate YearsDesperate Years

►Some wealthy and middle-class Cdns with Some wealthy and middle-class Cdns with secure jobs noticed little change, but many lost secure jobs noticed little change, but many lost factory jobs.factory jobs.

►Thousands survived on “pogey” – gov’t relief Thousands survived on “pogey” – gov’t relief payments given to those who had not income.payments given to those who had not income.

►But, not easy to receive, people had to swear But, not easy to receive, people had to swear that they didn’t own anything in value and that they didn’t own anything in value and were evicted from their home.were evicted from their home.

►Successful applicants received vouchers to buy Successful applicants received vouchers to buy food, but were not enough and humiliating.food, but were not enough and humiliating.

►Private charities provided used clothing and Private charities provided used clothing and meals.meals.

►Soup kitchens were set up to feed homeless.Soup kitchens were set up to feed homeless.►By winter of 1933 more than one-quarter of By winter of 1933 more than one-quarter of

the workforce was unemployed.the workforce was unemployed.►Young men hopped freight trains from town Young men hopped freight trains from town

to town looking for work – “riding the rods”to town looking for work – “riding the rods”►Women were criticized for taking jobs.Women were criticized for taking jobs.►Aboriginal families received $5 a month and Aboriginal families received $5 a month and

were expected to “live off the land”.were expected to “live off the land”.►Chinese and Jewish people were viewed with Chinese and Jewish people were viewed with

hostility and were discriminated against.hostility and were discriminated against.

Responding to the Responding to the DepressionDepression

►Liberal PM Mackenzie KingLiberal PM Mackenzie King was was unprepared to deal with the crisis, unprepared to deal with the crisis, believed it was temporary, and told Cdns believed it was temporary, and told Cdns financial help was the responsibility of the financial help was the responsibility of the provincial gov’ts.provincial gov’ts.

►Final straw – told parliament he wouldn’t Final straw – told parliament he wouldn’t contribute ‘a five-cent piece’ to a Tory contribute ‘a five-cent piece’ to a Tory provincial gov’t. – cost him the 1930 provincial gov’t. – cost him the 1930 election.election.

►Conservative PM R.B. BennettConservative PM R.B. Bennett – no more in – no more in favour of relief.favour of relief.

►Gave $20 million to provinces for work Gave $20 million to provinces for work creation programs, but the econ did not creation programs, but the econ did not improve.improve.

►He raised tariffs by 50% to protect He raised tariffs by 50% to protect Canadian industries. It did more harm than Canadian industries. It did more harm than good, as nations started trade barriers good, as nations started trade barriers against Canada.against Canada.

►New lingo: Bennett Barnyard (deserted New lingo: Bennett Barnyard (deserted farm), Bennett Blanket (newspaper), farm), Bennett Blanket (newspaper), Bennett Coffee (roasted wheat), Eggs Bennett Coffee (roasted wheat), Eggs Bennett (boiled chestnuts).Bennett (boiled chestnuts).

►Work camps esta to get unemployed out of Work camps esta to get unemployed out of the cities for 20 cents a day.the cities for 20 cents a day.

On-to-Ottawa TrekOn-to-Ottawa Trek► In 1935, over a thousand men left the In 1935, over a thousand men left the

camps in BC for Ottawa to protest camp camps in BC for Ottawa to protest camp conditions.conditions.

►Men crowded into and on top of freight cars Men crowded into and on top of freight cars picking supporters along the way.picking supporters along the way.

►The RCMP stopped them in Regina. Bennett The RCMP stopped them in Regina. Bennett met with the leaders, but name-calling met with the leaders, but name-calling ensued.ensued.

►Protesters were confined into a local Protesters were confined into a local stadium and when the RCMP were told to stadium and when the RCMP were told to clear them out a riot began – 1 killed, many clear them out a riot began – 1 killed, many injured, 130 jailed.injured, 130 jailed.

PM R.B. BennettPM R.B. Bennett

►The failure of the The failure of the "On to Ottawa" "On to Ottawa" Trek was a tough Trek was a tough blow for the career blow for the career of Prime Minister of Prime Minister Bennett, who was Bennett, who was widely criticized widely criticized for his handling of for his handling of the situation.the situation.

Read p. 84-85Read p. 84-85►Looks at the difference between US and Looks at the difference between US and

Canadian gov’t involvement during the Canadian gov’t involvement during the Depression.Depression.

►Roosevelt’s “New Deal”Roosevelt’s “New Deal”► John Maynard Keynes - economistJohn Maynard Keynes - economist

►Answer Questions #1 – 4 Answer Questions #1 – 4

Politics of ProtestPolitics of Protest

►Cdns looked to alternative parties for Cdns looked to alternative parties for solutions to the Depression:solutions to the Depression:

CCFCCF Social Credit PartySocial Credit Party

Provincial SolutionsProvincial Solutions

►Voters dissatisfied with inaction voted Voters dissatisfied with inaction voted out ruling provincial parties:out ruling provincial parties:

OntarioOntario QuebecQuebec BCBC

Distractions From DespairDistractions From Despair►From 1920 movies, radio, and magazines From 1920 movies, radio, and magazines

became a staple in the lives of Cdns.became a staple in the lives of Cdns.►Even with the problems of the Even with the problems of the

Depression, entertainment remained Depression, entertainment remained enormously popular.enormously popular.

►US radio – “The Lone Ranger” and big US radio – “The Lone Ranger” and big bands.bands.

►CBC was created in 1936 to win over Cdn CBC was created in 1936 to win over Cdn listeners.listeners.

►Dionne QuintupletsDionne Quintuplets►Grey OwlGrey Owl

Chap 3 &4 ReviewChap 3 &4 Review

►Adjustment of Soldiers returning from warAdjustment of Soldiers returning from war►Winnipeg General StrikeWinnipeg General Strike►Regionalism – protest from provincesRegionalism – protest from provinces►Progressive partyProgressive party►Cdn’s growing independenceCdn’s growing independence►Booming EconomyBooming Economy►Role of Women – the Persons CaseRole of Women – the Persons Case►Causes of DepressionCauses of Depression►Responses – US and CdnResponses – US and Cdn

►On-to-Ottawa TrekOn-to-Ottawa Trek►New partiesNew parties►Provincial solutionsProvincial solutions►DistractionsDistractions

►P. 86#1-4P. 86#1-4►P.90 #1-3P.90 #1-3►Chapter Reviews for Chap 3 + 4Chapter Reviews for Chap 3 + 4►Chapter 3 Activity Sheets: Vocabulary Chapter 3 Activity Sheets: Vocabulary

words and people.words and people.