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The Effects of the Great Depression on Canada.

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Introduction

´╗┐The Great Depression Summary: The Great Depression affected Canada a great amount. Effects, such as unemployment, drought, and bankruptcies, all impacted the country immensely. Whereas Canada?s poor government role on the foundation was at the slowest, social programs introduced during this period provided the foundation for Canada's current social safety net that is still around today. Labour: The Great Depression impacted Canada in many ways and factors, which caused and deepened the depression. The aftermath of the war created some problems in Canada that were not there before. This period was also known as the interwar years, when depression struck across the world, and unemployment was a large factor. Due to over production, factories panicked and laid off huge amounts of workers. As the Depression declined, so did unemployment. When a worker lost their job, they did not line up for unemployment benefits, they went into competition with other individuals who were out of work. What stood out mostly was the fact that earning a dollar a day was considered a good wage; it mainly went covering for food cost. As more and more workers were laid off, there was a decline in demand, which caused the Depression to deepen. In Canada, citizens reacted in different ways. Those who were young had the capabilities to work harder and were better liked, which in return helped them keep their job. Men as young as 16, left home to work in camps to reduce the burden on their family. ...read more.

Middle

However, the little money that wheat brought in did not cover production costs, let alone, neither did farm taxes, causing further depreciation. The net farm income fell from $417 million in 1929 to $109 million in 1933. The Stock Market: The stock market was another factor that added to the Great Depression; during the dramatic drop, many stocks became worthless. However, the United States was afflicted with an illusion that this was a new era. This was the time where top hit songs like Neil Armstrong?s ?When You?re Smiling? and Irving Berling?s ?Puttin on the Ritz? played hand in hand with the mood of the era, which was the feeling of optimism. This was the time where the stock market was booming; everyone had an interest in it. People like tailors and grocers had one kind of share or another in the market. This was also the first time that many ordinary Americans had begun to invest into the market. Stocks are shares of a company that are bought and sold on the New York Stock Exchange, having value based on demand; as list value of the stock goes up, price increase follows. As the stock market?s popularity increased, so did the popularity of its people. The public was fascinated with bankers and brokers, who became like celebrities and lived like royalty. This was also the time where President Herbert Hoover was running for the presidential election. During his election, he brought the expectation of the public that everyone could have some piece of the pie out of the rising prosperity. ...read more.

Conclusion

King was not prepared for the depression and so he didn?t take an interventionist approach to the economy. King was eventually openly criticized for his controversial comment that he would not give ?a five cent piece? of relief money to any province that had Conservative government. One of the most dramatic political responses to the great depression was formation of new political parties. They were the Canadian Co-operative Federation (later known as the N.D.P) and the Social Credit Party. They created social programs and later proposed more. But as the depression deepened, enlightened leaders realized that the government would have to take a more active role in caring for the poor. National economies began to be strictly controlled by elected governments. Many things originated during the depression such as unemployment insurance, sick benefits, child benefits, and welfare. Much of these formed the basis for the social safety net Canada has today, which masked a great deal in the 2008 Ression Conclusion: In conclusion, the depression affected Canada greatly in many different ways and changed the role of government forever, from employment insurance, to sick benefits, child benefit and welfare. The unemployment rate now is 8.4% compared to 19.3% in 1933. That means that crime, and other factors dependent on the employment rate, are better now than they were in the Depression. Society as a whole is much stronger. The reason the Depression was devastating was because people panicked and stopped spending and saving entirely. Today, there are structures in place, things like welfare and social security that will ensure people do not starve like they did in 1933. http://www.tradingeconomics.com/canada/unemployment-rate Labour Force During The Great Depression http://homes.chass.utoronto.ca/~echist/lec9.htm ...read more.

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