Political Response to the Depression

Political Response to the Depression

Mackenzie King

• Liberal Prime Minister during the onset of the Depression.
• Viewed the Depression as a typical phase of the business cycle; therefore, he had limited concerns.
• Provided no assistance to non-Liberal Provinces, maintaining a partisan stance.
• Focused on balancing the budget and implemented cuts to some simple taxes.
• Sought to protect Canadian businesses from foreign imports rather than initiating active recovery measures.
• Adopted a passively optimistic wait-and-see approach to the economic crisis.

R.B. Bennett

• Millionaire bachelor, presented himself as an alternative to Mackenzie King.
• Promised decisive action with a confident tone to rally public support.
• Advocated for funding provincial public works and relief programs to combat unemployment.
• Introduced subsidized freight rates for farmers to aid agricultural producers.
• Attempted to establish preferential trade conditions with the United States, which turned out to be largely ignored by American policymakers.
• Initially hesitant to embrace, but later acknowledged the ideas of Keynesian economics, which advocate for active government intervention to stimulate economic growth.

John Maynard Keynes

• A prominent British economist who argued for government intervention in the economy.
• Proposed that in situations of inadequate private demand, governments should engage in significant spending, even if it means incurring massive debt.
• Believed that once a recovery occurs, the increased government revenues during economic growth would allow for the repayment of the incurred debts.
• His theories became foundational in modern macroeconomic policy and are often referred to as Keynesian economics.

Tim Buck & the Canadian Communists

• Advocated that capitalism inherently generates conflict between social classes, specifically between the wealthy (bourgeoisie) and the working class (proletariat).
• Predicted that the proletariat would eventually rise and overthrow the bourgeoisie, abolishing private property and class divisions.
• Pointed to the USSR as a functioning alternative, asserting that it had eliminated depressions through enforced equality, albeit leading to a uniformly low standard of living.
• Called for a revolutionary approach to change the socio-economic system in Canada.

The Cooperative Commonwealth Federation (CCF)

• A socialist political movement formed partly in reaction to the issues of the Depression, distinct from communism.
• Emphasized the need for labor to have a significant voice in national affairs and decision-making processes.
• Blamed the crisis on the excessive power of large banks and corporations, advocating for more governmental control to protect workers.
• Influentially led by James Woodsworth, who sought to mobilize public support for social reforms.

William (Bible Bill) Aberhart

• Leader of the Social Credit party in Alberta; a former preacher with a unique economic approach.
• Proposed that the government should create credit to generate new money for distribution among Canadians, with the aim of stimulating economic activity.
• Elected to provincial government, attempted to pass laws that fell under federal jurisdiction, drawing criticism for overstepping powers.
• Expressed grievances against the Ottawa government, believing central Canada was responsible for the economic struggles in the West, a sentiment that continues to resonate in Western Canadian politics today.

Maurice Duplessis & the Union Nationale

• Became a prominent political figure among rural French-speaking citizens in Quebec, acting as a response to English capitalist interests.
• Mobilized support from the Roman Catholic Church, which feared a drift towards communist ideologies, thus aiding in his removal of the Liberal government in Quebec.
• Promoted a message of reform and change but repeatedly failed to enact substantive reforms during his tenure.
• His administration was marked by significant corruption, benefiting from the support of Protestant English elites and the Church to maintain power for years.
• His actions ultimately contributed to the emergence of the Quiet Revolution and growing separatism feelings within Quebec society.