The Bennett New Deal The Bennett New Deal

The Bennett New Deal

The Bennett “New Deal” ¢Franklin Roosevelt became president of the USA in 1933 on the strength of a promise of a “new deal for the working man. ” ¢This “New Deal” involved a program of relief for the unemployed, economic recovery and reform. ¢Bennett attempted to borrow aspects of this plan, but for most Canadians it was too little too late.

Bennett’s New Deal - 1935 His promises included ¢ Unemployment insurance, a minimum wage, health insurance and agricultural marketing boards. ¢ Few of these promises were ever translated into policy. Farm Family 1930 s

Conditions in Canada in 1935 ¢Unemployment by 1935 was ten times that of 1930. ¢Mortgage foreclosures and unemployment were the common lot of many Canadians. ¢“On to Ottawa Trek” to protest conditions in relief camps. ¢Riots broke out in Regina on Dominion Day 1935.

“King or Chaos” Mackenzie King ¢ This slogan helped bring King and the Liberals back to power in 1935. ¢ Bennett’s “New Deal” collapsed with the fall of his government. ¢ Two new political parties, the CCF and Social Credit, elected MPs for the first time. ¢ These “parties of protest” were a response to the failures of the Liberals and Conservatives.

The Cooperative Commonwealth Federation ¢ The CCF was founded in Saskatchewan in 1933. ¢ Its program was outlined in the Regina Manifesto. ¢ The basic beliefs were that the government should own all important industries. ¢ Business and the wealthy should be taxed to provide social benefits for the citizens.

Social Credit ¢ This political movement was founded in Alberta and its first leader was William Aberhart or “Bible Bill. ” ¢ He believed that more money would stimulate the economy. ¢ Social Credit promised a “Basic Dividend” of $25 to each citizen over the age of twenty-one. ¢ This never happened but Social Credit became the party of business and free enterprise.

The Liberals after 1935 ¢ King and the Liberals returned to power just as the economy began to improve.

International Economic Problems and the Rise of Hitler

International Economic Problems Europe and, in particular, Germany was badly hit by problems that the prosperity of the “twenties” only briefly improved. In Germany the collapse of the economy after 1929 resulted in the rise to power of National Socialism (the Nazis) and ultimately to another world war.

The German Economy ¢During World War I the German government had borrowed large sums of money to finance the war. ¢After the war the new government printed too much paper money in an attempt to pay down the debt. ¢The result by 1923 was hyper-inflation.

The Weimar Government ¢In Germany the Weimar Government was established following the collapse of the autocracy in 1918. ¢This new government was weakened by political turmoil and too many political parties. ¢There was little respect in Germany for democratic institutions.

The Treaty of Versailles ¢ This treaty signed in 1919 was considered by many Germans to be unfair. ¢ Germany’s boundaries were considerably altered leaving many German speaking people outside of Germany. ¢ Germany was forced to accept guilt for causing the war. ¢ Large reparations payments were imposed on Germany.

The Great Depression of 1929 and Germany ¢ The crash of the American stock market ended loans to Germany. ¢ These loans were necessary to pay reparations. ¢ German banks failed and unemployment rose by March of 1932 to over six million. ¢ The middle class which had been badly hurt by inflation in the 1920 s now faced complete ruin.

Unemployment in Germany 1928 -35