The Great Depression Flashcards
How did the American government attempt to encourage the consumption of domestic goods in 1930?
In 1930 the government introduced a series of tariffs on international trade, but other countries including Canada introduced similar policies, substantially slowing international trade and leading to numerous business failures
What was the dust bowl?
A series of droughts in North America in the 1930s that led to financial difficulties for farmers
What were the social effects of the great depression?
People with low incomes were hit hard and many began to swing towards collectivist ideologies, unemployment led to strikes and protests, and people began to question classical liberal economics
What was the Regina Riot?
At the start of the depression, Richard Bedford Bennet’s conservative Canadian government set up work camps for men to work on government projects. In 1935, 16 000 men walked out demanding better conditions. They protested in Vancouver before riding train box cars to Ottowa in the On-To-Ottowa trek. Bennett agreed to meet with 8 men if the rest stayed in Regina, but the negotiations went poorly and riots ensued. The RCMP was called and over 100 protesters were hurt
What was Richard Bedford Bennett’s (Canadian) response to the great depression?
He established relief camps but eventually cut government spending. He tried to quiet left-wing protesters and communists. When we realized his strategy wasn’t working, he tried to establish new-deal style policies but was shut down by the courts
What was Mackenzie King’s (Canadian) response to the great depression?
He beat Bennett out of office in 1935 and sought more government involvement in the economy. He introduces welfare policies in Canada.
Who was C.D. Howe?
The ‘minister of everything’; served in multiple minister positions and supported welfare policy. During WWII he introduced 28 manufacturing businesses for supplies for the allies, lowing unemployment and boosting the economy
Who was Maurice Duplessis?
The Québec premier in 1936 who imposed interventionist policies, instated a fair wage commission, farm credit program and benefits for single moms and the blind. He also introduced the Padlock Law.
What was the padlock law?
A law introduced by Maurice Duplessis in 1937 that allowed the sites of communist meetings to be padlocked for a year
Who was Herbert Hoover?
An American president during the great depression who believed Americans should fend for themselves. This led to people moving to ‘Hoovervilles’. He was later replaced by Franklin Roosevelt.
How did Franklin Roosevelt react to the great depression?
He replaced Herbert Hoover. Immediately, he closed banks for four days to quell panic, created new legislation and aimed to create government jobs to give citizens purchasing power
What was the new deal?
A series of programs and projects introduced by Franklin Roosevelt during the great depression to reinstate economic prosperity
How did the supreme court react to the new deal?
They declared many of Roosevelt’s actions as unconstitutional. Unions were formed and unrecognized.
What is the Keynesian Economic Policy?
A policy that thinks total goods and services produced and their prices are determined by DEMAND. (Demand-side economics). The new deal was the first major conversion of Keynes’ ideas
How does the Keynesian policy say we should respond to inflation and recession periods?
During inflation, interest rates and taxes should increase, and government spending should decrease, allowing the government to save up. During recession, the government should lower interest rates and taxes, while increasing government spending on projects and welfare.
