The Great Depression

The Great Depression of the 1930s in Canada

The Great Depression of the 1930 's is a benchmark for all depressions and recessions in the past and in the future. In the booklet "The Great Depression of the 1930s in Canada" , Michiel Horn gives an intellectual dissection of the events that occurred during the Great Depression. Michiel Horn 's approach leaves the reader with a foul taste for the Dirty Thirties. This essay will summarize Michiel Horns key points as well as discuss the ability of Michiel Horn to report his findings.

Michiel Horn is currently the Chairman of the History Department at York University. His interests in the Great Depression revolve around the history of taxation. Therefore, he is interested in making sure that this sequence of events is fully understood so that future generations never allow it to happen again.

There are several causes of the Great Depression which Michiel Horn touches on throughout his writings. The initial tool that he used to help understand the situation was to look at statistical data from that time. Through use of this data, a greater understanding of the physical hardships could be quantified and compared to present day. The reading begins with statistics about the shocking rate of unemployment. In 1933, at the height of the depression, the unemployment rate was between 19.3and 27 percent. The industrial activity in 1933 was only 57 percent of the average activity for the years 1925-29. The causes for the Great Depression were easy to see, but hard to fix. The problems included the inability of foreign countries to purchase surplus goods produced by other countries. Before the Great Depression, the British used this tactic to stabilize the market. Unfortunately, during the depression the British were still hurting from the First World War. The only country that could have stepped in was the United States and they elected not to. With no other countries stepping in, the price of goods fell. With the price of goods continuing to fall, the international market was flooded with goods that were below cost. The governments of larger countries decided that they would increase tariffs on importing goods. This, in turn, led to an even tighter international market where goods could not be traded. With no market, the goods were sold at a loss. As a result of the losses, layoffs occurred. These layoffs started at the bottom and slowly trickled upwards. "White collar workers faired better than blue collar workers".

The lower class was devastated by layoffs especially those families who were just scraping by to begin with. It was especially hard for a lower class male to find a job and he would usually be the first to lose it. Women had a slight advantage in retaining a job as they made less money than males. The amount of money they did make would not have supported a family. With little money coming in, the lower class increasingly relied on savings as well as government hand outs. Even though they were faced with adversity, these people were still able to enjoy themselves. The churches organized different activities that included dances and other relatively cheap forms of entertainment. James Gray wrote "the people all across the west discovered there was no essential relationship between income and the enjoyment of life…" As the depression continued, the salaries of even the white collar workers declined.

The only people who were safe from the depression were the upper class. If you had money, the depression was a great time. "You could take your girl to a supper dance at a hotel for $10, and that included the bottle and a room for you and your friends to drink it in" John David Eaton. This showed the decreasing value of goods and services and the fact that if you had money life was easy.

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The little enjoyment that people could partake in was diminished again as the depression continued and worsened. The depression not only affected the financial and entertainment aspects of life, it started to affect life itself. As people were having fewer children at this time, the population growth of Canada slowed. In an effort to keep jobs for Canadians, the government decided that it would reduce immigration. The first group targeted was the Jewish people. Some Canadians even decided to go to the United States in search of "greener pastures" . The movement of people from the country to cities also slowed. This was because it was easier for people to subsist in the country where they could chop their own firewood and live off the land. Life on the farm was actually not much better than in the city, as a drought cost many farmers, particularly those in the west, their crops.

The political scene was dominated by a Liberal party that would not "commit a five cent piece towards the cost of unemployment relief" . This eventually led to their defeat in the summer of 1930. The winner of the election was the Conservative party. Their goal was to get Canada back up and running. In an effort to do so, they raised tariffs on imports and tried to protect national interests. This actually had the opposite affect on the economy and pushed the country further into economic hardship. The government around this time was also trying to balance the budget. In order to balance the budget, they increased taxes which also had a detrimental affect on the economy. After five years, the Conservatives were defeated due to unorganized leadership. The Liberals won the election in 1935. Although the Conservative plan for action was eventually used, the Liberals were slow to make any sort of moves. The so called "New Deal" included unemployment insurance and did not take affect until the war began. The war basically started the economic engine of Canada. Overall, the depression was a time in Canadian politics where very little action was taken. Most of the work being done was on a speculation basis. Instead of Canada looking forward to the future, they were looking back at the 20 's and trying to re-create those times. Eventually, the war led to an economic recovery in Canada.

Michiel Horn 's article, as a whole, brings the Great Depression to life. The author uses a good mixture of facts, figures and actual quotes from the time. The overall message is one of hardship. It gives the impression that people were struggling just to survive. The types of history that were discussed were social and political. These two types of history were tied-in very well. The social ramifications of the lack of political leadership led the people of this time into a desperate struggle for their lives.

Overall, the essay has a very important message and is extremely relevant to students of this time and in the future. With the threat of an economic recession looming over the United States, now more than ever is the time when people should be looking at the past. The majority of the writing showed the results of the recession. In order for this never to happen again, there is a need to learn from the mistakes in the past and to look for the warning signs. The problem is not just restricted to one country, but is a global problem and needs to be addressed as such.

The Great Depression often seems very distant to people of the 21st century. This article is a good reminder of potential problems that may reoccur. The article showed in a very literal way the idea that a depression can bring a growing country to its knees. The overall ramifications of the event were never discussed in detail, but the historical significance is that people 's lives were put on hold while they tried to struggle through an extremely difficult time.

Bibliography

Michiel, Horn. The Great Depression of the 1930s in Canada. Ottawa: The Canadian Historical Association, 1984.

Bibliography: Michiel, Horn. The Great Depression of the 1930s in Canada. Ottawa: The Canadian Historical Association, 1984.