As a result of the Depression, several new regional political parties were formed in Canada. These parties proposed  solutions to the economic and social problems which Canadians were facing. They included:
 

The Co-operative Commonwealth Federation  (C.C.F.) Founded in Saskatchewan by J.S. Woodsworth. Called on the federal government to nationalize banks, public utilities and natural resources. Proposed creation of social security schemes such as minimum wage, accident and sickness insurance, old age pensions and unemployment insurance.

Social Credit Founded in Alberta by William Aberhart. Called for government take-over of banks and greater control of money supply. Proposed that the government should provide interest-free loans to families.

Union Nationale (UN) Founded in Quebec by Maurice Duplessis through a coalition of the Action Libérale Nationale and the Conservative Party. Called for economic reforms that would help Quebec overcome its problems. Promoted traditional and conservative values of Catholic Church and rural life.

Federal-Provincial Relations

• Conflicts developed between the federal and provincial governments over control of social programs.

• The Depression showed that the provinces did not have the money required for important projects. Ottawa wanted more control of social programs and to have total control over taxes. In return, the provinces would receive grants from the federal government.

• These measures, which were suggested by the Rowell-Sirois Commision in 1940, were rejected by the provinces.