What Is The Cause Of The Grat Depression In Canada

In late 1929, the Grat Depression started in United States and reached in Canada unexpectedly rapidly, up to 27% of unemployment forces man businesses to close and bring millions of losses. The Canadian government came with a series of solutions, some are
At the Depression, the provincial and municipal governments were already in debt after an expansion of infrastructure and education during the 1920s. It thus fell to the federal government to try to improve the economy. When the Depression began Mackenzie King was Prime Minister. He believed that the crisis would pass, refused to provide federal aid to the provinces, and only introduced moderate relief efforts.
New Deal[edit]
The Bennett Government initially refused to offer large-scale aid or relief to the provinces, much to the anger of provincial premiers, but it
He reduced expenditures and increased the sales tax and the income tax. The poor and unemployed got nothing.[28] The $25 monthly social dividend never arrived, as Aberhart decided nothing could be done until the province 's financial system was changed, and 1936 Alberta defaulted on its bonds. He did pass a Debt Adjustment Act that canceled all the interest on mortgages since 1932 and limited all interest rates on mortgages to 5%, in line with similar laws passed by other provinces. In 1937 backbenchers passed a radical banking law that was disallowed by the national government (banking was a federal responsibility). Efforts to control the press were also disallowed. The party was authoritarian and tried to exert detailed control over its officeholders; those who rebelled were purged or removed from office by the new device of recall elections. Although Aberhart was hostile to banks and newspapers, he was basically in favor of capitalism and did not support socialist policies as did the Cooperative Commonwealth Federation (CCF) in