Essay On How The Great Depression Shaped Canada

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How the Great Depression Shaped Canada Many significant events have shaped Canada. The Great Depression, referred to as the dirty thirties, is one event that helped shape Canada. The Great Depression began on October 29, 1919, when the stock market crashed in New York. The effects of the depression were catastrophic, but led to a better Canada. The Great Depression, shaped Canada’s future by impacting Canada’s economy, social programs, and politics. The Depression shaped Canada by impacting the economy. During the Depression people rapidly lost savings and employment. In 1934, after passing the Bank of Canada Act, Prime Minister R.B. Bennett’s government established The Bank of Canada. This was the banker for the federal government, owned …show more content…
Old age pension was established by the federal government in 1927, and was funded by the federal and provincial governments. A person collected twenty dollars a month if they were British subjects, 70 years or older, and had lived in Canada for 20 years. After the Depression the plan was changed to a more modern plan that was more inclusive and easier to survive on (“Old-Age Pension”). Due to the Depression employment insurance (government relief paid during times of unemployment) was established in July 1941. Today’s employment insurance can be linked back to the depression. Canada’s unemployment rate spiked to around twenty percent and the government knew more assistance was required. Recipients had to prove they had worked between four hundred twenty and seven hundred hours to receive unemployment (Smith). This allowed unemployed Canadians to provide for their families. Without Canada’s employment insurance many Canadians would be living in poverty. A third social program that occurred because of the Depression was the Family Allowance. The depression caused birth rates to drop due to inability to support families. Canada’s population remained low after the Depression. To raise it the government gave each family a Family Allowance to encourage them to have children (“Family Allowance”). This shaped Canada because it helped regain population lost during the depression.