Canada in the 1920s and Canada in the 1920s and the Great Depressionthe Great Depression

IB ObjectivesIB Objectives

Mackenzie KingMackenzie King

RB BennettRB Bennett

IB Paper 3 Sample QuestionsIB Paper 3 Sample Questions

In what ways, and for what reasons, did In what ways, and for what reasons, did the relationship between Canada and the relationship between Canada and Britain change between 1900 and 1931?Britain change between 1900 and 1931?

““The political and economic impact of the The political and economic impact of the First World War on Canada was more First World War on Canada was more positive than negative.” How far do you positive than negative.” How far do you agree with this judgment?agree with this judgment?

IB Paper 3 Sample QuestionsIB Paper 3 Sample Questions

Analyse the main developments in Analyse the main developments in Canada’s economic relations with the Canada’s economic relations with the United States in the first half of the United States in the first half of the twentieth century.twentieth century.

Analyse the short-term and long-term Analyse the short-term and long-term effects of the First World War on the effects of the First World War on the economic and political development of economic and political development of Canada.Canada.

IB Paper 3 Sample QuestionsIB Paper 3 Sample Questions

Analyse the impact on Canada of Analyse the impact on Canada of participation in the First World War.participation in the First World War.

To what extent did the First World War To what extent did the First World War contribute to the emergence of the contribute to the emergence of the movement towards greater sovereignty for movement towards greater sovereignty for Canada?Canada?

Lecture OutlineLecture Outline

I.I. Canada in the 1920Canada in the 1920

A. Effects of World War IA. Effects of World War I

B. Economic Relations with the U.S.B. Economic Relations with the U.S.

C. LaborC. Labor

D. Canadian IndependenceD. Canadian Independence

II. Canada during the Great DepressionII. Canada during the Great Depression

Key TermsKey Terms

OBUOBU

Statute of WestminsterStatute of Westminster

Richard Bedford BennettRichard Bedford Bennett

Mackenzie KingMackenzie King

Canada Enters the WarCanada Enters the War

When the war broke out in 1914, Canada When the war broke out in 1914, Canada entered automatically as part of the British entered automatically as part of the British Empire.Empire.

In October 1914 more than 30,000 In October 1914 more than 30,000 Canadian soldiers were shipped to Canadian soldiers were shipped to Europe.Europe.

The war caused conflict between French The war caused conflict between French and English Canadians.and English Canadians.

Impact on CanadaImpact on Canada

The EconomyThe Economy 60,000 Canadians were killed in action 60,000 Canadians were killed in action

and around 200,000 were wounded out of and around 200,000 were wounded out of about 625,000 Canadian soldiers.about 625,000 Canadian soldiers.

Effects of World War IEffects of World War I

The transition from a war time to peace The transition from a war time to peace time economy led to a brief burst of time economy led to a brief burst of inflation where prices doubled from their inflation where prices doubled from their pre-war average, and then to a severe pre-war average, and then to a severe recession that lasted until 1923.recession that lasted until 1923.Grain prices fell by 1/3, however they were Grain prices fell by 1/3, however they were still high enough to encourage farmers to still high enough to encourage farmers to expand production, and Canada became expand production, and Canada became the world’s largest exporter of wheat.the world’s largest exporter of wheat.

PopulationPopulation

During the 1920s about 1 million people During the 1920s about 1 million people immigrated to Canada with most of them immigrated to Canada with most of them becoming part of the urban industrial becoming part of the urban industrial workforce.workforce.

By the end of the decade, British people By the end of the decade, British people made up half of the population and French made up half of the population and French people were a little over 28%people were a little over 28%

Economic relations with the U.S.Economic relations with the U.S.

U.S. owned 1/3 of Canada’s pulp U.S. owned 1/3 of Canada’s pulp productionproduction

U.S. capital was vital for the expansion of U.S. capital was vital for the expansion of the Canadian mining industrythe Canadian mining industry

Ford, Chrysler, and GM established auto Ford, Chrysler, and GM established auto production plants in Canada and produced production plants in Canada and produced about 75% of all cars in the country.about 75% of all cars in the country.

Economic RelationsEconomic Relations

Oil and natural gas was discovered in Oil and natural gas was discovered in Alberta in 1914 and Canada became one Alberta in 1914 and Canada became one of the world’s larges producers of of the world’s larges producers of petroleum.petroleum.

By the early 1920s, the U.S. had replaced By the early 1920s, the U.S. had replaced Britain as Canada’s number one trading Britain as Canada’s number one trading partner.partner.

LaborLabor

During the war labor unions had doubled During the war labor unions had doubled their membership and economic troubles their membership and economic troubles during 1918-1922 caused many workers to during 1918-1922 caused many workers to go on strike.go on strike.

In March 1919 western labor leaders met In March 1919 western labor leaders met at Calgary and organized into the One Big at Calgary and organized into the One Big Union (OBU)Union (OBU)

OBUOBU

The OBU was a socialist organization that The OBU was a socialist organization that was inspired by the Communist success in was inspired by the Communist success in Russia in 1917.Russia in 1917.

The Calgary delegates called for a general The Calgary delegates called for a general strike across Western Canada and in May strike across Western Canada and in May 1919 30,000 unionized workers in 1919 30,000 unionized workers in Winnipeg went out on strike and shut Winnipeg went out on strike and shut down the city.down the city.

““Bloody Saturday”Bloody Saturday”

On June 21 in Winnipeg—”Bloody On June 21 in Winnipeg—”Bloody Saturday”—two workers were killed and Saturday”—two workers were killed and 30 injured by the Mounties.30 injured by the Mounties.

The strike was broken and the military The strike was broken and the military took control of the city.took control of the city.

This caused Canadian unions to decline in This caused Canadian unions to decline in power and lose membership during the power and lose membership during the 1920s.1920s.

Canadian AutonomyCanadian Autonomy

In 1917 Britain invited prime ministers from its In 1917 Britain invited prime ministers from its empire to join the British Cabinet to form an empire to join the British Cabinet to form an Imperial War Cabinet to coordinate the war Imperial War Cabinet to coordinate the war effort. effort.

Britain also recognized Canada as an Britain also recognized Canada as an autonomous nation of an Imperial autonomous nation of an Imperial Commonwealth.Commonwealth.

After WWI, Canada had control of its armed After WWI, Canada had control of its armed forces and has influence on Imperial matters forces and has influence on Imperial matters that concerned its well-being.that concerned its well-being.

Statute of WestminsterStatute of Westminster

Officially recognized Canada’s Officially recognized Canada’s independence in 1931independence in 1931

Also gave independence to Australia, New Also gave independence to Australia, New Zealand, South Africa, Irish Free State, Zealand, South Africa, Irish Free State, and Newfoundland.and Newfoundland.

Causes of the Great Depression in Causes of the Great Depression in CanadaCanada

Decline in investment and demand in Decline in investment and demand in industryindustry

Shrinkage of agricultural marketsShrinkage of agricultural markets

A drought and subsequent prairie A drought and subsequent prairie dustbowldustbowl

A grasshopper invasion in 1937A grasshopper invasion in 1937

Effects of the Great DepressionEffects of the Great Depression

About 27% of non-agricultural workers About 27% of non-agricultural workers were unemployed and the total were unemployed and the total unemployment probably exceeded 50% at unemployment probably exceeded 50% at the height of the depression.the height of the depression.

Agricultural income shrank by 75%.Agricultural income shrank by 75%.

Impact of tariffsImpact of tariffs

The Hawley-Smoot Tariff in the U.S. in The Hawley-Smoot Tariff in the U.S. in 1930 was just one of several measures 1930 was just one of several measures that led to a drastic decline in exports, that led to a drastic decline in exports, which, prior to the crash, accounted for which, prior to the crash, accounted for more than a third of Canada’s nation more than a third of Canada’s nation income.income.

Between 1928 and 1933, annual per-Between 1928 and 1933, annual per-capita income in Canada declined by 48% capita income in Canada declined by 48% from $471 to $247.from $471 to $247.

Richard Bedford BennetRichard Bedford Bennet

In the election of 1930 In the election of 1930 Bedford’s Bedford’s Conservative party Conservative party won control of the won control of the Canadian Canadian government.government.

He believed that self-He believed that self-help was better than help was better than public assistance.public assistance.

BennettBennett

He raised the tariff by almost 50% causing He raised the tariff by almost 50% causing the US to retaliate and Canada’s foreign the US to retaliate and Canada’s foreign trade decline by two-thirds from 1929-trade decline by two-thirds from 1929-19331933

By 1935 it was clear that the Depression By 1935 it was clear that the Depression was not going away so he created his own was not going away so he created his own “New Deal” based off of FDR’s.“New Deal” based off of FDR’s.

BennettBennett

Parliament enacted unemployment Parliament enacted unemployment insurance, minimum wages and a insurance, minimum wages and a maximum 48 hour work-weekmaximum 48 hour work-week

Federal government created the Bank of Federal government created the Bank of CanadaCanada

His reforms were too late and his party lost His reforms were too late and his party lost the 1935 election and the Liberal party of the 1935 election and the Liberal party of Mackenzie King regained power.Mackenzie King regained power.

Mackenzie KingMackenzie King

Most of Bennett’s reforms had been found Most of Bennett’s reforms had been found unconstitutional and King did not unconstitutional and King did not implement any new social policy initiatives.implement any new social policy initiatives.

By 1938 the King government began to By 1938 the King government began to stimulate the economy with deficit stimulate the economy with deficit spending.spending.