3.2.6 The Great Depression in Canada
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3.2.6 The Great Depression in Canada
Economic Success to Economic Disaster
Inscription: ANOTHER CASE OF ATTEMPTED DESERTION AND ABANDONMENT OF FILIAL RESPONSIBILITY
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©Blaming it on Bennett, by Arthur George Racey, published in the Montreal Star in 1931 Courtesy Library and Archives Canada C-141243
From 1919 until 1929, Canada had the fastest-growing economy in the world. However, during the Great Depression, Canadians were hit hard. Production dropped and unemployment was high. Businesses closed as corporate profits became losses. Families
lost their assets and took on huge debts. As prices dropped for agricultural, mining, and lumber products, thousands lost their jobs.
Unlike the US government, the Canadian government did not take immediate and extreme action to deal with these issues. When the Depression began, Liberal Prime Minister MacKenzie King was in power. He believed the economy would right itself. He lost the 1930 federal election to Conservative R.B. Bennett who made some minor attempts at creating work projects for the unemployed, but he maintained a laissez-faire attitude.
Consider the political cartoon to the left. The cartoonist shows the Liberal Party, as symbolized by the man on the left wearing a working man's cap representing former Liberal Prime Minister Mackenzie King putting on the Conservative government's doorstep a baby, in a basket entitled "Getting rid of the Liberal government's administrative errors".
Bennett's policies led to the formation of the Bank of Canada, the central bank of the country. Prior to Bennett's rule, banks in Canada were privately owned. The Bank of Canada was used to regulate the economy. Today, Canada's banking system is considered by the World Economic forum to be the most efficient and safest banking system in the world.
Eventually, Bennett tried to implement similar policies to those of the New Deal, but many were struck down by the courts. In 1935, he lost the federal election to MacKenzie King, who implemented many of the social programs that remain in effect in Canada today.
Bennett was a wealthy man who had grown up in a relatively poor household. He lived by the motto "Work as hard as you can, earn all you can, save all you can, and then give all you can." However, he often flaunted his wealth, which made him unpopular with the thousands of unemployed Canadians. During this period in history, many Canadians owned cars but could not afford gas. Often, they removed the engine and windows and pulled the car with horses. These vehicles were named "Bennett buggies" as a discredit to Prime Minister Bennett who many blamed for the country's poverty.
Unlike the US government, the Canadian government did not take immediate and extreme action to deal with these issues. When the Depression began, Liberal Prime Minister MacKenzie King was in power. He believed the economy would right itself. He lost the 1930 federal election to Conservative R.B. Bennett who made some minor attempts at creating work projects for the unemployed, but he maintained a laissez-faire attitude.
Consider the political cartoon to the left. The cartoonist shows the Liberal Party, as symbolized by the man on the left wearing a working man's cap representing former Liberal Prime Minister Mackenzie King putting on the Conservative government's doorstep a baby, in a basket entitled "Getting rid of the Liberal government's administrative errors".
Bennett's policies led to the formation of the Bank of Canada, the central bank of the country. Prior to Bennett's rule, banks in Canada were privately owned. The Bank of Canada was used to regulate the economy. Today, Canada's banking system is considered by the World Economic forum to be the most efficient and safest banking system in the world.
Eventually, Bennett tried to implement similar policies to those of the New Deal, but many were struck down by the courts. In 1935, he lost the federal election to MacKenzie King, who implemented many of the social programs that remain in effect in Canada today.
Bennett was a wealthy man who had grown up in a relatively poor household. He lived by the motto "Work as hard as you can, earn all you can, save all you can, and then give all you can." However, he often flaunted his wealth, which made him unpopular with the thousands of unemployed Canadians. During this period in history, many Canadians owned cars but could not afford gas. Often, they removed the engine and windows and pulled the car with horses. These vehicles were named "Bennett buggies" as a discredit to Prime Minister Bennett who many blamed for the country's poverty.
As you read, takes notes on the section question:
How did capitalist economic systems respond to classical liberalism?
As you read, take notes on the following:
- What ideas are presented about classical liberalism and laissez-faire capitalism?
- How did these signify a shift from classical to modern liberalism?