Canada & The Depression
- Prime Minister Bennett had provided relief for the unemployed, but cut government spending in belief that the concept of Laissez-faire would lead the economy out of crisis.
- The bank of Canada was formed and took control of all of the money supply, and used interest rates to control the economy.
- Bennett put a stop to left wing protests and communist party activities in Canada. The economy wasn’t recovering by 1935, so Bennett introduced programs similar to Roosevelt’s new Deal, but the legislation he introduced was shut down by the courts.
- Mackenzie King was elected in the next year and he had the government become much more involved in the economy and created social programs, which were part of the modern welfare state and mixed economy. C.D. Howe; another politician made huge changes during his career and was a large contributor to the building up of the economy in Canada.
Ebb & Flow of Liberal Economic
Following the great depression, Canada followed the lead of the united states, and increased government spending in order to create more social programs and overall security. This established Canada as a welfare state and a mixed economy.