Solutions to the 1930 depression in Canada

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History Debate – Opposition Leader As the opposition leader, I would like to restate, and possibly further strengthen, some of the points that my fellow opposition members have made. First of all, I would like to agree that the government did make some attempts to improve the economy and the conditions of the people during the Great Depression. However, there were certainly other things that could be done. For example, the idea of going deeply into debt to save the economy during a crisis such as the Great Depression, proposed by the British economist John M. Keynes, would certainly seem to be a nice solution. During a depression, it would be crucial to engage in deficit spending to stimulate employment and stabilize wages. The government deficit or debt could be repaid during good economic times when people were earning more money and paying more taxes. Yet, Bennett was reluctant to go into debt. He believed that the economy would correct itself through the natural fluctuation of the business cycle. This, we know, is quite impossible. After several years of terrible economic conditions, it now seemed apparent that we need to give the economy a push before it could return to its normal state. And where would that push come from? The answer is by going deeply into debts to create job opportunities so that the economy may return to prosperity. Besides going into debt, I would like to point out a few other things that the government could have done. Besides raising tariffs, Bennett refused to take any other direct economic actions. He could have, for example, raised taxes on the few remaining wealthy people. Another more effective solution would be deficit spending. Yet, what did Bennett do? He merely raised tariffs against Britain and U.S.A., which obviously wasn’t an effective enough policy. Bennett did make some attempts to solve this crisis.
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