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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 ... – PowerPoint PPT presentation

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Title: 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

IB Paper 3 Sample Questions
  • Analyse the main developments in Canadas
    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
  • 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
  • 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
  • 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
  • Grain prices fell by 1/3, however they were still
    high enough to encourage farmers to expand
    production, and Canada became the worlds largest
    exporter of wheat.

  • 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 Canadas 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 worlds larges
    producers of petroleum.
  • By the early 1920s, the U.S. had replaced Britain
    as Canadas number one trading partner.

  • 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)

  • The OBU was a socialist organization that was
    inspired by the Communist success in Russia in
  • 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 WinnipegBloody Saturdaytwo
    workers were killed and 30 injured by the
  • 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
  • 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 Canadas independence in
  • 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
    Canadas nation income.
  • Between 1928 and 1933, annual per-capita income
    in Canada declined by 48 from 471 to 247.

Richard Bedford Bennet
  • In the election of 1930 Bedfords Conservative
    party won control of the Canadian government.
  • He believed that self-help was better than public

  • He raised the tariff by almost 50 causing the US
    to retaliate and Canadas foreign trade decline
    by two-thirds from 1929-1933
  • By 1935 it was clear that the Depression was not
    going away so he created his own New Deal based
    off of FDRs.

  • 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 Bennetts 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.
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