interwar - canadas response to the depression Flashcards
the bennett era 1930-35
in 1930 liberal mackenzie king fails to response to the economic crisis and is ousted as PM
conservative R.B. Bennett takes power
Keynsian economics
deficit spending
john meynard keynes(British) proposes that governments should spend their way out of the economic crisis
keynesian economics utilizes deficit spending which borrows money to be repaid in the future
this concept would see the economic effect/ economic cycle stabilize the economy
bennets first act
relief camps
created unemployment relief camps for single unemployed men only
the focus was on public works and putting money back in the economic cycle
tariffs
due to canada raw material export bennett argued that other countries would lower tariffs against canada in order to get industrial materials
Canadas New Deal
based upon US president F>D> Roosevelts New Deal
progressive taxation(the more you make the more you pay) minimum wage unemployment insurance vs poegy(welfare) health and accident insurance a revised old age pension agricultural support regulations on wheat prices
Poegy
means welfare
Welfare refers to a range of government programs that provide financial or other aid to individuals or groups who cannot support themselves.
CCF
co-operative commonwealth federation
people considered it radical and seen as communist
forerunner of the NDP
led by J.S. Woodworth
its foundation for regina manifesto- a heavy socialist platform
Regina Manifesto
The primary goal of the Regina Manifesto was to eradicate the system of capitalism and replace it with a planned socialist economy. The CCF was a Canadian democratic socialist party founded in 1932 by farmers, workers, and socialist groups against the backdrop of the Great Depression.
tariff meaning
a tax or duty to be paid on a particular class of imports or exports.
bennetts depression response
largest tariff increase on imports since 1896
$20M given to provinces for work projects
promoted empire based trade
talked with US president Hoover about a St Lawrence deep water project
government aid for prairie wheat pools
**created bank of canada
FIRST GOV BANK
why didnt bennetts New Deal work?
he got voted out before he could implement his New Deal
The social credit party coming to power
stormed to power in alberta based on the platform that capitalism was a wasteful economic system
banks hoard money
preventing people from purchasing the very goods that capitalism produced
social credit party beliefs
they believed that government should grant each person a social credit
$25/month to buy necessities
obviously for the average depression era citizen this was very appealing
kickstarts the economy
Bible Bill
Aberhart
was a charismatic preacher and teacher who led the Social Credit Party
he publicized his socialist theories on his weekly radio program voice of the prairies
Social Credit Party control
controlled alberta until 1971 under earnest manning and harry strom
