Canada and Communism During the Great Depression

Summary

This video explores Canada’s turbulent experience during the Great Depression, revealing how a booming economy based on natural resources collapsed following the 1929 stock market crash. With unemployment soaring to 27% and severe economic decline, Canadian Prime Minister Mackenzie King's passive response frustrated citizens. After R.B. Bennett’s brief, controversial term focused on combating communism and establishing work camps, King returned to power as the economy began to recover. The narrative combines humor and stark statistics to illustrate the challenges faced by Canadians during this historical crisis.

Takeaways

• 😀 Canada was initially thriving economically in the 1920s due to booming natural resource extraction and agriculture.
• 📉 The stock market crash of 1929 led to a severe economic downturn, impacting Canada significantly.
• 😟 By 1933, unemployment in Canada soared to 27%, with income and agricultural prices plummeting.
• 💰 Prime Minister Mackenzie King's response to the crisis was ineffective, focusing on tariffs that angered citizens.
• 🚪 R.B. Bennett defeated King in the 1930 elections, promising to fix the economy but instead cracking down on suspected communists.
• 🔍 Bennett's government launched a campaign against communism, often labeling dissenters unfairly.
• 🛠️ Work camps were established for unemployed young men, paying them only 20¢ a day, reflecting social control measures.
• 📢 Protests against Bennett's policies were met with police force, illustrating the government's authoritarian response to dissent.
• 🏛️ By 1935, King returned to power and repealed Bennett's policies as the economy began to show signs of recovery.
• 🌍 Full economic recovery for Canada wouldn’t occur until World War II, highlighting the global impact of the war on national economies.

Q & A

What was the economic situation in Canada before the Great Depression?

Before the Great Depression, Canada had a booming economy, heavily reliant on natural resources and agriculture. The prairie provinces were producing record levels of grain, and trade with Europe and the United States was flourishing.

What triggered the Great Depression in Canada?

The Great Depression in Canada was triggered by the stock market crash of 1929, which led to a drastic decrease in demand for Canadian exports, including timber and agricultural products.

What were some statistics reflecting the impact of the Great Depression on Canadians?

By 1933, unemployment in Canada reached 27%, incomes fell by 50%, imports dropped by 55%, exports decreased by 25%, business investments fell by 79%, and private capital expenditure declined by 70%.

How did Mackenzie King's government respond to the economic crisis?

Mackenzie King’s response to the economic crisis was largely passive. He increased tariffs on imports but did little else to address the widespread economic hardship, which frustrated many Canadians.

What change occurred in Canadian leadership during the Great Depression?

In the 1930 elections, Mackenzie King was defeated by R.B. Bennett, who campaigned on promises to take action to fix the economy, although he focused more on anti-communism during his term.

What measures did R.B. Bennett implement regarding communism?

R.B. Bennett cracked down on suspected communists, imprisoning individuals deemed threats and establishing work camps for unemployed young men to keep them occupied and monitored.

What was the purpose of the Royal 20 Centers established during Bennett's government?

The Royal 20 Centers were work camps designed to employ single young men who were unemployed, providing them with minimal wages while allowing the government to keep an eye on them to prevent potential communist activities.

How did Bennett's government respond to protests by unemployed workers?

When a group of unemployed workers organized a protest march to Ottawa in 1935, Bennett sent in the police to suppress the protest, viewing it as a communist threat.

What reforms did Bennett introduce towards the end of his term?

Towards the end of his term, Bennett introduced some reforms inspired by the American New Deal, but many Canadians felt these were insufficient and too late to effectively address the ongoing crisis.

How did Mackenzie King's return to power affect Canada's recovery?

Mackenzie King returned to power when the economy began to show signs of recovery. He repealed many of Bennett's policies and began bailing out the provinces, contributing to a gradual improvement in economic conditions.