By 1933, the Great Depression had reached its worst point in Canada with 25% unemployment. The government was pressured to take action as both the Liberal and Conservative parties had failed to solve the crisis up to that point. Canadians were exposed to and impressed by Franklin Roosevelt's New Deal policies in the US through radio broadcasts. In 1935, William Lyon Mackenzie King and the Liberals returned to power after promising policies inspired by the New Deal, including unemployment insurance and increasing government intervention in the economy. Provincial governments had also struggled with bankruptcy and unrest during the Depression as they lacked the resources to adequately address growing unemployment within their jurisdictions.

1. Great Depression:
Government Response

2. Political Situation
During The Depression
• PM William Lyon Mackenzie King (King)
has been kicked from power in 1930.
• R.B. Bennett comes to power under the
Conservatives promising to
end unemployment.
• King will later return in 1935.

3. Depression Bottoms Out
• By 1933 the depression was at its worst.
• With 25% of the workforce unemployed
the government is pressured to take
immediate action.
United
States
Great
Britain
France Germany
Industrial production –46% –23% –24% –41%
Wholesale prices –32% –33% –34% –29%
Foreign trade –70% –60% –54% –61%
Unemployment +607% +129% +214% +232%

4. No Progress
• In 1930, Canadians had voted for
Bennett because he had promised them
a cure for the depression
• By 1932 four provinces were bankrupt
• The Liberals did not have the solution
either
• Canadians were looking for something
new to ease the suffering

5. New Deal
• Introduced in US by Franklin Roosevelt
• Canadians were exposed to him via radio
• Even Bennett was impressed
• The New Deal of 1935 called for unemployment
insurance, minimum wage, maximum hours,
marketing boards to raise farm prices and
government intervention

6. Montage of the New Deal in the US

7. Provincial Issues
• Many provincial governments went bankrupt
during the depression and needed help being
able to run their day to day affairs.
• Provincial parties were being quickly booted
from office for also failing to stop the depression.
• Provinces were told by the federal government
that they were responsible for finding work and
dealing with unemployment.
• The provinces did not, however, have the
necessary tools to handle this duty.

8. Provincial Solutions
• Many provincial leaders attempted to put down strikes within
their own provinces.
• Duff Pattullo was elected Premier of BC in 1933.
• Pattullo shortened the work day, increased the minimum wage,
and increased work relief payments by 20 percent.
– In Short, Pattullo instituted a mini new-deal similar to
the US.
• The federal government challenged Pattullo on this issue.
• Mayors and the premier in BC were resented less than Bennett,
but were still blamed for being ineffective in the fight to slow
the depression.
• The reactions of the provincial governments varied depending
on which province you were in.
• In the 1936 Quebec provincial election: Union Nationale wins
led by Maurice Duplessis. A party that openly supports Quebec
separating from Canada

9. Election 1935
• The liberals won the election of 1935 easily
following Bennett and the conservatives
inability to lift Canada from the
depression
• In 1938 King and the Liberals put the bank
of Canada under government control
• The economy was beginning to improve
under a new reciprocity agreement with
the United States