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IB Diploma history

CANADA TAKE HOME TEST

My thesis statement is that the measures taken by the successive Canadian governments failed in
order to face the serious problems due to the Depression, such as unemployment,the human cost
and the international trade.
During the 1920s Canada experienced an incredible period of prosperity fueled by a boom in the
economy. It was largely based on the USA prosperity, especially on international trade of staple
products to the US; also consumerism played an important role in fueling the boom. However, when
the Depression hit the USA, the weak basis on which the Canadian prosperity laid fell, leading
Canada into the Depression. In fact, international trade experienced a huge fall, as well as
consumerism.
Between 1925 and 1930 Mackenzie King was the Head of Government. He was a strong supporter
of laissez-faire and of limited government intervention in the economy.Thus, he initially refused to
provide any kind of relief to people or to increase government spending. He strongly believed the
economy would right itself with a resurgence in international trade.
From 1929 to 1934 Bennett was Prime Minister. Bennett ,although sustaining laissez-faire, approved
measures to provide relief by creating new jobs and develop stronger relations with Britain.To
reduce unemployment by creating new jobs financing provinces and municipalities ,the
Unemployment and Farm Relief Act in 1931 and the Public Works Construction Act in 1934 were
approved. Overall, these measures were not strong enough and the situation did not change. The
creation of relief camps represented another attempt to deal with unemployment. However, even if
employment was provided by the federal government, also this measure was not effective because of
the military-style discipline of the camps and low pay.The living standards of the participants
remained eventually unchanged.
Bennett also supported the idea of Imperial Preference hoping that by increasing international
trade, the economy might recover. In 1932, during the Ottawa Conference, Bennett achieved to
obtain tax reductions among the countries within the British Empire. As a result, Canadian exports
to Britain rose by 60 per cent. However, just as the other measures,even if it represented an
improvement in the economy, it was not enough to end the Depression, which continued.
Towards the end of his presidential mandate, Bennett changed his approach in dealing with the
Depression. He proposed a Canadian version of the New Deal, including unemployment
insurance,minimum wages and a centralized planning economy. This radical change might be
interpreted as an admission of failure of his own previous measures. However, in 1935 he lost the
election and his New Deal measures did not pass. People believed Bennett government did not do
enough to end the Depression. Therefore they elected president King again.
Interestingly, King changed his previous approach to the Depression too. He seemed to have
realized that the economy would have right itself and that citizens were asking for more radical
measures. Therefore,he renounced the idea of a balanced budget, increased government spending

IB Diploma history

and he agreed to pay for job creation schemes. However, his measures were largely ineffective and it
was eventually the war that brought Canada out of the Depression.
In conclusion, it is clear that the measures adopted by successive Canadian governments were
unsuccessful. By 1939, the economy was still depressed and living standards did not improve. In fact,
unemployment was still high and international trade was overall still low compared to the 1920s.
Both King and Bennett failed in order to make the economy recover. It was eventually the war that
solved the Depression, by raising dramatically GNP and lowering unemployment to technically
zero.

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