Answer:
The outbreak of the Great Depression in the fall of 1929 caused much economic hardship in Newfoundland and Labrador. Most damaging was a breakdown in world trade, which caused the country's revenue to plummet. Despite its shrinking income, the government still had to make interest payments on a sizeable national debt and provide essential services to the public. Widespread unemployment during the 1930s exacerbated an already difficult situation by forcing the government to spend millions of dollars on various relief programs. Most, however, were ineffective. Dole rations, for example, were heavily policed and much too small to live on; land settlement also ended in failure.
At the same time the government increased relief spending, it also contributed to the crisis by laying off employees and making cuts to health care, education, and other social programs. When allegations of corruption surfaced against high-ranking political officials in 1932, it intensified the public’s mounting dissatisfaction with party politics and led to the swearing in of the Commission of Government in 1934. For the most part, however, the new regime proved equally incapable of improving the Depression’s impacts on the working class and on the country as a whole. It was not until the employment boom of the Second World War that the country recovered.
The impact of the great Depression was devastating to Newfoundland and Labrador’s export-based economy. A sudden slump in international trade dramatically reduced revenue from fish, mineral, and pulp and paper exports. Profits decreased from $40 million in 1930 to only $23.2 million in 1933. The national debt, meanwhile, continued to climb. By the end of 1933, the government owed $100 million – mostly to the United Kingdom and the United States. Interest payments alone accounted for 63.2 per cent of the country’s shrinking income.
The government responded to the crisis by borrowing more money from abroad. As the Depression deepened, however, the pool of willing lenders dried up. Britain and Canada worried that it would reflect badly on the Empire if Newfoundland and Labrador failed to meet its interest payments and agreed to lend the government money in return for a number of concessions. One was the appointment of a financial advisor to help organize the country’s finances. Sir Percy Thompson, deputy chairman of the Board of Inland Revenue, filled this position in August 1931. At around the same time, the Newfoundland and Labrador government appointed Montreal businessman Robert J. Magor to investigate various government departments and reduce spending wherever possible.
Unfortunately, it was the country’s poor and vulnerable who were most negatively affected by the ensuing government cutbacks. The government laid off one-third of its civil servants and reduced wages for the rest. At the same time, it introduced new taxes that increased the cost of living by approximately 30 per cent. The government also slashed spending on health and education, but doubled its police force in 1932 to better maintain law and order amid a growing atmosphere of public unrest. Perhaps most frustrating to the country’s unemployed, however, were Magor’s efforts to reduce public relief payments, widely known as the dole.
Explanation:
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Why did the framers of the constitution create separation of powers and how do they work?
Answer:
The Framers structured the government in this way to prevent one branch of government from becoming too powerful, and to create a system of checks and balances. Under this system of checks and balances, there is an interplay of power among the three branches.
