Great Depression of Two Countries in the Region Essay Example for Free

capital printing of Two Countries in the Region EssayCompare and contrast the resolution to the Great Depression of two countries in the region. The outbreak of the Great Depression in 1929 ca ro conduct economical hardship for society in the Americas. World trade was quelled and the consequences devastated the United States of America and Canada. Both countries suffered a breakdget in demesne trade and resulted in a decrease of domestic revenue. The politicss were tasked with restoring an economy that faced a 40% and 37% drop in their GDP in Canada and the U. S respectively. Additionally the increased range of unemployment heightened the difficult situation. In 1933-34 during the hardest parts of the depression, Canada faced 28% unemployment and the US 25% forcing the government to act on various policies and of necessity spending on recovery. The long term laissez faire approach from the government had to be reconsidered and simply instilling asceticism measures were n ot going to be effective in balancing the federal budget. The attitudes of business organisation of America is business was also evident in the initial Canadian response.Similar to Herbert Hoover of the U.S, Prime Minister Mackenzie fagot believed that the crisis was a passing phase and refused to provide federal aid. This was partly attributed to the fact that Canada was already in debt due to expansion of infrastructure and education during the 1920s and only introduced moderate relief efforts. Hoovers exceedingly economically republican outlook was not popular and by 1932 Franklin D. Roosevelt was elected President. Correspondingly in Canada a new Prime Minister Richard B. Bennett was tasked with alleviating the situation. Roosevelt initiated a New Deal, which would provide America with relief, recovery and reform from the economic depression. In response to the Great Depression Congress accelerated its tariff policies, culminating in the Reciprocal raft Agreements feign of 1934 which enabled the President to negotiate tariff reductions on a bilateral basis. In an angered response to the SmootHawley tariff of republican government in 1930, the Mackenzie government welcomed the British introduction of trade protectionism and a strategy of Commonwealth preference during 1931-32.In addition Canadian congress retaliated by raising its own rates on American imports. However this was not sustainable in the long run as the Canadian export economy had a dependence on a few primary products as it shrank by 50%. The worst hit industries such as farming, mining and logging saw prices collapses with dinky prospect to find some other job. In 1935 the Bennett Government eventually initiated a Canadian New Deal. Mirroring the ideas of Roosevelt, Industrial Standards Act was designed to bring Canadian workers and employers together under the auspices of the state to establish minimum engage and work standards. In America between1933-4 the National Recovery Admin istration also encouraged competitive fee to encourage spending and purchasing power for society. Roosevelt was also successful in his Job creation policies. In 1933 Alphabet agencies were designed to put people back into work and in turn reducing unemployment. The noncombatant Conservation Corps (CCC) made it possible for 3 million young men to develop matter and state park systems.Contrary to the highly capitalist system in America the Federal taking into custody Relief Administration (FERA) was set up to give relief to the unemployed with a budget of euchre million dollars. In contrast the Canadian government were comparatively to a greater extent unsuccessful in creating more jobs. The bailout of the Canadian National railway took the debt to a further debt of $2 billion and while losing popularity Bennett could only fall for minimum wage, unemployment insurance programs. These efforts were largely unsuccessful the provinces challenged the rights of the federal government to spellage these programs. A return of the Mackenzie world power government in 1935 meant a turning point in CanadianAmerican economic relations. The government passed the 1935 Reciprocal Trade Agreement undoing the devastating trade war of 193031. The second new mass from the Roosevelt government added changes to crusade policy.The Works Progress Administration became the most significant relief agency in the New Seal. It received $4.8 billion and was particularly noteworthy in helping women, artists, young people and the African American population. During Roosevelts tenure unemployment rate returned to 9% and continue to fall until the Second World War. on with the fiscal strategies used by the American government there was also a prominent use of monetary policy to help the recovery. In the atomic number 79 reserve Act of 1914, the dollar was pegged to the price of Gold at $35 an ounce, making exports considerably cheaper and imports cheaper. In another attempt Federal si lver bring was increased to 30% of Golds stock to raise prices Silver Purchase Act of 1914. yet Bennetts government created legislation to establish the Bank of Canada to regulate monetary policy in 1935 the Canadian chaff board was created to market and establish a minimum floor price for wheat.In actuality the monetary strategies had little impact as they were not radical enough. On the other hand Premier of Alberta William Aberhart felt same(p) farmers were being exploited by high society in Toronto and Montreal. His radical and evangelist stance led to Social Credit movement 1932 to handing out a dividend of $25 a month to every man and woman. This ultimately failed but Aberhart did pass a Debt Adjustment Act in 1936 that cancelled all the amour on mortgages since 1932 and limited all interest rates on mortgages to 5%. This was an indication of some of the far-reaching changes that were requisite to drive growth. The Canadian recovery can also be credited to the foundation CRBC- Canadian wireless broadcasting council 1932. The depression was not just an economic term but also a feeling in order to raise spirit and keep morale high the radio was used as an escape for the Canadian people.Conversely the productivity in the U.S recovered much quicker while the labour force sustained a melancholy feeling. Canadas Crown in council also helped to create another national corporation Bank of Canada. It was used to regulate currency and credit which had been badly managed amongst citizens. Another finishing of the BOC was to serve as a private bankers bank and to help the government on its own debts and financial matters as it eventually steered Canada to prosperity after the Second World War. This coincided with the recovery in American economy which created a better market for exports and a new inflow of much need capital.