Great Depression Canada Essay

940 Words2 Pages

Assess the success of Canadian policies to solve the economic problems caused by the Great Depression.
The economic problems caused by the Great Depression that the Canadian governments sought to solve were most significantly the stagnating growth of the economy; the foreclosure of farms; and the need for relief due to high unemployment. The responses to these problems varied between McKenzie King and Bennett, with McKenzie King originally ignoring the existence of a crisis. Their successes were also varied, although minimal, with World War Two being the main cause of Canada being lifted out of Depression. Government responses to the stagnating growth of the economy varied – whilst McKenzie King was opposed to any policies that would raise …show more content…

Bennett increased tariffs to protect Canadian production, an action that did little to stimulate the economy as it caused a further fall in demand for Canadian goods, removing them from the world market as fewer consumers were able to afford them. Clements in particular argues that Bennett's policy was unsuccessful as he says that the effect of the policy was to limit trade even more. This argument is largely true as the tariffs resulted in a diminished market for Canadian goods. Furthermore, this diminished market resulted in producers of staples being laden with surplus products. It is estimated that in Manitoba, for example, the overall cost of the tariffs in lost revenues was $100 per farm. Whilst the measures may have saved some firms from bankruptcy, they did little to help exports because of the fall in international demand. This led to overproduction and further losses, therefore rendering this …show more content…

Bennett most notably introduced the Farmers' Credit Arrangement Act, which aimed to allow farmers to remain in their farms rather than face eviction through foreclosure. It has been argued, particularly by Clements, that this policy was somewhat successful since it generally benefited the farmers rather than their creditors. However, this argument is only true to some extent as although 36,000 cases had been handled, only $4 million of interest on the debts had been removed from the total indebtedness figure of $159 million. This is a minute percentage, proving that the Farmers' Credit Arrangement Act had a far smaller impact than Bennett anticipated. Furthermore, McKenzie King failed to act in response to the problem of farm foreclosures. Government policies in response to agricultural issues were therefore insufficient in meeting the needs of farmers, indicating that the policies were for the most part

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