Key Concepts
The concept of economic stabilization was central to Canada's response to the Great Depression. The government implemented various policies aimed at stimulating economic growth, including:
- Infrastructure projects, such as road construction and bridge building
- Farm subsidies and price supports
- Economic diversification, particularly in the manufacturing sector
Technical Details
The Unemployment Insurance Act of 1934 introduced several key technical innovations, including:
The establishment of a national unemployment insurance fund, which provided financial assistance to unemployed workers
A system of contributory benefits, where employers and employees contributed to the fund through payroll taxes
A minimum benefit amount, set at $30 per week (approximately $450 in today's dollars)
Applications/Uses
The Unemployment Insurance Act of 1934 had significant applications in Canada, including:
- The establishment of a national unemployment insurance system, which provided financial assistance to millions of Canadians during the Great Depression
- The promotion of economic diversification, particularly in the manufacturing sector
- The stimulation of infrastructure development, through projects such as road construction and bridge building
Impact/Significance
The Unemployment Insurance Act of 1934 had a significant impact on Canada's economy and society, including:
A reduction in unemployment rates, from 25% in 1933 to 12% in 1935
An increase in economic growth, driven by infrastructure development and economic diversification
A strengthening of the social safety net, through the establishment of a national unemployment insurance system
Related Topics
The Unemployment Insurance Act of 1934 was part of a broader set of policies aimed at addressing the Great Depression in Canada. Some related topics include:
- The Canadian government's response to the Great Depression, including the establishment of the Royal Commission on Unemployment Insurance
- The role of social policy in promoting economic growth and stability
- The development of unemployment insurance systems in other countries
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