What long-term consequences did the Great Depression have on Canadian government policy?

The long-term consequences of the Great Depression significantly influenced Canadian government policy, particularly by increasing the focus on welfare programs and regulation. During the Depression, widespread unemployment and economic hardship highlighted the vulnerabilities in the existing economic system. As a result, the Canadian government recognized the need for active intervention in the economy to provide relief to citizens and stabilize the financial system.

This led to the establishment of various welfare programs, such as unemployment insurance and old-age pensions, as well as initiatives to regulate industries, trade, and commerce more closely to prevent such severe economic downturns in the future. This shift marked a significant change from a more laissez-faire approach to one where the government took a more active role in managing the economy and supporting its citizens through social safety nets. This transformation was crucial in shaping modern Canadian social policy and the welfare state that developed in the years following the Depression.

In contrast, the other options do not align with the historical outcomes observed after the Great Depression. For instance, the idea of less government involvement is contrary to the increased intervention seen during this era. A shift towards isolationism did occur globally, but Canada took steps to engage more with its economy. Finally, while there was some emphasis on foreign aid post-World War II, it