Glossary

7.3 Political Responses and the Rise of New Parties

6 min read•august 6, 2024

The hit Canada hard, sparking new political movements. Traditional parties struggled to address the crisis, leading to the rise of alternative voices like the and .

These new parties offered radical solutions to economic woes, challenging the status quo. Their emergence reshaped Canadian politics, reflecting growing discontent with established policies and a desire for change during tough times.

Government Responses to the Great Depression

R.B. Bennett's Policies

Top images from around the web for R.B. Bennett's Policies

  • Prime Minister R.B. Bennett and group at the CNE | Flickr - Photo Sharing! View original

    Is this image relevant?

  • R. B. Bennett - Wikipedia View original

    Is this image relevant?

  • Prime Minister R.B. Bennett and group at the CNE | Flickr - Photo Sharing! View original

    Is this image relevant?

1 of 3

Top images from around the web for R.B. Bennett's Policies

  • Prime Minister R.B. Bennett and group at the CNE | Flickr - Photo Sharing! View original

    Is this image relevant?

  • R. B. Bennett - Wikipedia View original

    Is this image relevant?

  • Prime Minister R.B. Bennett and group at the CNE | Flickr - Photo Sharing! View original

    Is this image relevant?

1 of 3
  • , Conservative Prime Minister from 1930-1935, initially responded to the Great Depression with traditional laissez-faire economic policies and limited government intervention
  • Bennett's government provided some relief through public works projects and direct aid to provinces, but these measures were insufficient to address the scale of the crisis
  • In 1935, Bennett introduced a "" platform, which included proposals for unemployment insurance, minimum wages, and other social welfare measures, but it was too late to save his political career
  • Bennett's policies were criticized for being too little, too late, and he was defeated in the 1935 election by the Liberals under

Mackenzie King's Approach

  • Mackenzie King, Liberal Prime Minister from 1935-1948, took a more interventionist approach to the Great Depression than his predecessor
  • King's government introduced the (1938) to stimulate the construction industry and provide affordable housing
  • The (1935) was established to assist farmers in the drought-stricken Prairies through soil conservation, irrigation projects, and financial aid
  • King's government also created the (1934) to regulate the country's monetary policy and provide stability to the financial system
  • Despite these measures, King was criticized for not doing enough to address the root causes of the Depression and for maintaining a balanced budget at the expense of social welfare

Fiscal and Monetary Policies

  • The Canadian government initially responded to the Great Depression with a tight monetary policy, maintaining the gold standard and high interest rates, which exacerbated the economic downturn
  • In 1931, Canada abandoned the gold standard, allowing the Canadian dollar to depreciate and providing some relief to exporters
  • The government also implemented protectionist trade policies, such as the 1930 Smoot-Hawley Tariff in the United States, which raised tariffs on imported goods and led to a decline in international trade
  • Fiscal policy during the Depression was generally characterized by government austerity and attempts to balance the budget, despite the need for increased spending to stimulate the economy
  • The Bank of Canada, established in 1934, helped to regulate the money supply and maintain low interest rates, but its effectiveness was limited by the government's fiscal conservatism

Impact on Canadian Society

  • The Great Depression had a profound impact on Canadian society, with widespread unemployment, poverty, and social unrest
  • Many Canadians were forced to rely on government relief or private charity to survive, and the economic hardship led to increased social and political tensions
  • The Depression also had a significant impact on Canadian agriculture, with falling commodity prices, drought, and soil erosion leading to the abandonment of many farms and the migration of farmers to urban areas
  • The term "" was coined to describe the horse-drawn carts used by many unemployed Canadians during the Depression, as they could not afford to maintain their cars or purchase gasoline
  • The social and economic upheaval of the Great Depression led to a growing demand for political change and the rise of new political movements in Canada

Rise of New Political Parties

Co-operative Commonwealth Federation (CCF)

  • The (CCF) was founded in 1932 as a socialist political party, advocating for public ownership of key industries, social welfare programs, and economic planning
  • The CCF's founding document, the (1933), called for a "complete transformation of our economic and political institutions" to address the failures of capitalism and the hardships of the Great Depression
  • The party gained support among farmers, labor unions, and intellectuals, particularly in Western Canada and Ontario
  • In the 1935 federal election, the CCF won seven seats in Parliament, marking the beginning of its rise as a significant force in Canadian politics
  • The CCF's success in the 1930s laid the groundwork for the eventual formation of the New Democratic Party (NDP) in 1961

Social Credit Party

  • The Social Credit Party was founded in 1935, based on the economic theories of British engineer C.H. Douglas, who advocated for the distribution of "social credit" to citizens as a means of boosting purchasing power and stimulating the economy
  • The party gained popularity in Alberta, where it won the 1935 provincial election under the leadership of , and formed the government until 1971
  • Social Credit also had some success in British Columbia, forming the government from 1952 to 1972 under the leadership of
  • At the federal level, the Social Credit Party won 17 seats in the 1935 election, but its influence remained largely confined to Western Canada
  • The party's popularity declined in the post-war years, as economic conditions improved and its economic theories lost credibility

Communist Party of Canada

  • The , founded in 1921, experienced a resurgence of support during the Great Depression, as many Canadians became disillusioned with capitalism and sought radical alternatives
  • The party played a significant role in organizing the unemployed and supporting labor strikes, such as the 1931 Estevan coal miners' strike in Saskatchewan and the 1935 of unemployed workers
  • Despite its activism and growing membership, the Communist Party faced significant opposition from the government and the public, particularly due to its ties to the Soviet Union and its revolutionary ideology
  • In 1931, several Communist Party leaders were arrested and convicted under of the Criminal Code, which banned organizations advocating for the overthrow of the government
  • The party's influence declined in the late 1930s, as the Canadian government became increasingly hostile towards communism and the public's attention shifted towards the growing threat of fascism in Europe

Regional Impacts

Provincial Responses to the Great Depression

  • The Great Depression had varying impacts on different regions of Canada, and provincial governments responded to the crisis in diverse ways
  • In Western Canada, particularly the Prairie provinces, the Depression was exacerbated by severe drought and falling agricultural prices, leading to widespread poverty and the abandonment of many farms
  • The Alberta government, under the Social Credit Party, attempted to implement a system of "" to provide relief to citizens, but the scheme ultimately failed
  • In Ontario and Quebec, the industrial heartland of Canada, the Depression led to massive layoffs and factory closures, as well as labor unrest and strikes
  • The Ontario government, under Conservative Premier , implemented a program of public works and direct relief, but also engaged in strict budget-cutting measures and the suppression of labor activism
  • In Quebec, the Liberal government of maintained a balanced budget and resisted calls for increased government intervention, leading to growing social and political unrest
  • The Maritime provinces, already struggling with economic stagnation and outmigration before the Depression, were hit hard by the downturn in global trade and the collapse of the region's primary industries, such as fishing and coal mining
  • Provincial governments in the Maritimes provided limited relief and public works programs, but the region remained mired in poverty and underdevelopment throughout the 1930s
  • The varying regional impacts and responses to the Great Depression highlighted the economic and political disparities within Canada and the need for a more coordinated and comprehensive national approach to the crisis

Key Terms to Review (20)

Bank of Canada: The Bank of Canada is the country's central bank, established in 1934, responsible for formulating and implementing monetary policy, issuing currency, and overseeing the stability of the financial system. It plays a critical role in managing inflation and promoting economic growth, which influences political responses and the emergence of new political parties focused on economic issues.
Bennett Buggy: A Bennett Buggy refers to a type of improvised vehicle that emerged in Canada during the Great Depression, specifically when people removed the wheels from their cars and replaced them with horse-drawn equipment due to the inability to afford gasoline. Named after R.B. Bennett, the Prime Minister at the time, these makeshift vehicles symbolize the economic hardships faced by Canadians and their resourcefulness in adapting to challenging circumstances.
CCF: The Co-operative Commonwealth Federation (CCF) was a political party in Canada that emerged in the 1930s, primarily focused on social democratic principles and advocating for reforms to address the economic challenges of the Great Depression. The CCF was formed in response to the growing discontent with traditional political parties and sought to represent the interests of workers, farmers, and marginalized groups, eventually becoming a significant player in Canadian politics.
Co-operative Commonwealth Federation: The Co-operative Commonwealth Federation (CCF) was a political party in Canada, founded in 1932, that aimed to address the social and economic injustices exacerbated by the Great Depression. The CCF advocated for democratic socialism, promoting policies such as social welfare programs, public ownership of key industries, and workers' rights. Its emergence marked a significant shift in Canadian politics, providing a platform for new ideas during a time of crisis and influencing the political landscape in the years to come.
Communist Party of Canada: The Communist Party of Canada (CPC) is a political party founded in 1921 that advocates for Marxist-Leninist principles and aims to establish a socialist society in Canada. The rise of the CPC emerged as a response to the socio-economic challenges faced by workers during the early 20th century, particularly after World War I, and it became a prominent voice for labor rights and social justice.
George Henry: George Henry was a prominent Canadian politician and the first leader of the Progressive Party of Canada, which emerged in the early 20th century as a response to the challenges faced by farmers and rural communities. His leadership marked a significant shift in the political landscape as the Progressive Party sought to address the economic and social issues affecting agrarian societies, leading to a realignment of political allegiances across Canada.
Great Depression: The Great Depression was a severe worldwide economic downturn that began in 1929 and lasted until the late 1930s, profoundly impacting societies across the globe. It triggered widespread unemployment, significant declines in industrial output, and a collapse of financial institutions, leading to lasting social and economic changes. The effects of this crisis shaped responses in various areas such as social welfare, political movements, and even cultural shifts, fundamentally altering the landscape of nations during this era.
Louis-Alexandre Taschereau: Louis-Alexandre Taschereau was a prominent Canadian politician and the 15th Premier of Quebec, serving from 1920 to 1936. His leadership marked a significant period in Quebec's political landscape, coinciding with the rise of new political movements and responses to changing social conditions in the province.
Mackenzie King: Mackenzie King was the Prime Minister of Canada for three non-consecutive terms between 1921 and 1948, becoming one of the longest-serving leaders in Canadian history. His leadership during crucial times, particularly the Great Depression and World War II, had a profound social and economic impact on Canada, as well as shaping the political landscape with the rise of new political parties and movements.
National Housing Act: The National Housing Act is a Canadian law passed in 1938 aimed at improving housing conditions and promoting homeownership by providing financial support for the construction and renovation of homes. This act marked a significant shift in governmental policy toward housing, reflecting the rising need for affordable housing during the Great Depression and influencing the emergence of new political parties focused on social issues.
New Deal: The New Deal was a series of economic programs and reforms introduced by Canadian Prime Minister William Lyon Mackenzie King in response to the Great Depression, aimed at revitalizing the economy and providing relief to those affected by the economic crisis. It marked a significant shift in governmental policy, emphasizing increased federal involvement in the economy and social welfare.
On-to-Ottawa Trek: The On-to-Ottawa Trek was a protest movement in 1935 where thousands of unemployed workers, primarily from the Relief Camps set up during the Great Depression, marched from British Columbia to Ottawa, seeking better working conditions and direct relief from the federal government. This event was significant as it highlighted the struggles faced by many Canadians during the economic crisis and sparked political debates about unemployment relief and social welfare programs.
Prairie Farm Rehabilitation Administration: The Prairie Farm Rehabilitation Administration (PFRA) was a Canadian government agency established in 1935 to address the agricultural crisis caused by the Great Depression and the Dust Bowl. It aimed to rehabilitate marginal farmland, improve farming practices, and promote sustainable agriculture in the Prairie provinces of Canada, which were severely impacted by soil erosion and drought conditions.
Prosperity certificates: Prosperity certificates were financial instruments introduced in Canada during the 1930s as a response to the Great Depression. They were designed to encourage spending and stimulate the economy by allowing citizens to purchase these certificates and use them for transactions, effectively creating a form of local currency. This initiative was part of broader efforts by various political movements and emerging parties aimed at addressing economic challenges and increasing public confidence in the financial system.
R.B. Bennett: R.B. Bennett was the 11th Prime Minister of Canada, serving from 1930 to 1935 during the tumultuous times of the Great Depression. His government was marked by attempts to combat the economic crisis through various policies and programs, including the creation of the National Employment Commission and the implementation of tariffs to protect Canadian industry. Bennett's leadership and policies reflected the struggles of a nation facing severe economic challenges and laid the groundwork for political responses that followed.
Regina Manifesto: The Regina Manifesto was a key document adopted in 1933 by the Cooperative Commonwealth Federation (CCF), outlining the party's principles and vision for social democracy in Canada. It marked a significant moment in Canadian politics, representing a shift towards more progressive policies and serving as a foundation for the rise of new political parties focused on social justice, economic reform, and the welfare of working-class Canadians.
Section 98: Section 98 refers to a clause in the Canadian Criminal Code that was enacted in 1937, allowing for the arrest and detention of individuals involved in sedition or promoting the overthrow of government by force. This provision was part of the government's response to the rise of labor unrest and political radicalism during the 1930s, specifically targeting left-wing organizations and movements. The implementation of Section 98 reflects broader political tensions and responses during a time of economic hardship and social change.
Social Credit Party: The Social Credit Party was a political party in Canada that emerged in the 1930s, advocating for economic reform through the distribution of 'social credit' or monetary dividends to citizens. The party gained prominence during the Great Depression, proposing solutions to the financial crisis by advocating for policies that aimed to improve purchasing power and economic stability, thus appealing to discontented voters in an era of hardship.
W.A.C. Bennett: W.A.C. Bennett was a prominent Canadian politician who served as the Premier of British Columbia from 1952 to 1972. He is best known for his role in the development of the Social Credit Party and for implementing significant social and economic reforms that reshaped the province during his tenure. His leadership marked a critical period in British Columbia's history, reflecting broader political changes and the rise of new parties across Canada.
William Aberhart: William Aberhart was a Canadian politician, educator, and the founder of the Social Credit Party in Alberta. He became Alberta's 8th premier in 1935 and led the province through the economic challenges of the Great Depression. Aberhart's policies focused on monetary reform and social justice, reflecting a broader response to the economic hardships of the time, which influenced the rise of new political parties.
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
Back
Practice QuizGlossary
Practice QuizGlossary
Next guide