Depression: Unemployment and Mackenzie King Essay

1020 WordsAug 6, 20115 Pages
Research Essay: To what extent was the Canadian government successful in its attempts to deal with the Depression? Carol Liang After World War I, the North American economy was booming, Canada had the world’s fastest growing economy. The start of the Depression came as a surprise to Canadians. When the stock market in the US, the biggest exported target for Canada’s primary resources after war, crashed, they reduced their demand for the products, people in Canada’s primary industries went bankrupt, unemployment rate raised from four point two percent to thirty percent, people could no more effort the luxurious lives, they did not buy much goods, which made other Canadian companies bankrupt, within a year millions of Canadians lost their…show more content…
In order to get the people on his side, Bennett promised word, to promote the strengthening of Canada's industry behind tariff walls, and to "blast (Canada's) way into the markets of the world." His government spent twenty million dollar for work-creation programs, eventually, it did not work much. When he noticed that the budget had been shortfall, he cut back severely spending on the federal government. This action deepened the crisis on the economy in Canada. He had another plan, raised tariffs to protect the domestic industries. Unfortunately, this plan produced more damage than benefit. The other countries raised their tariffs followed by to Canadian goods. The high tariffs hit the exported business by increasing cost. In the other hand, the domestic market could be not sufficient for the Canadians, less and less consume made the Depression more and more grievous. When this plan failed, Bennett had to take some other actions, to ensure the unemployment insurance, reduced the workweek, and set the minimum wages, industrial codes and a permanent economic planning. But those plans did not work out on the way he expected. As the number of jobless and homeless people in Canada growing, Bennett feared these men would come under the influence of the Communist Party, so that, the Communist Party was banned by the government, and some leaders were arrested. As this point, federal government decided to establish the work camps for
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