Unit Six: Canada Matures: Growth in the Post-War Period ( )
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1 Unit Six: Canada Matures: Growth in the Post-War Period ( ) 6.1 Economic changes: growth of primary and secondary industries, infrastructure, Cold War economy, labour relations
2 Veterans Come Home Return to Peacetime Returning veterans expected a new and better life Unlike the end of WWI, the Canadian government was prepared for them: Pamphlets & books on how to return to civilian life Job counselling Money for education, farmers and fishermen
3 Return to Peacetime Veterans Come Home Veterans could buy building lots at good prices Many Canadians could get financing to buy houses under the National Housing Act (1944)
4 Return to Peacetime Canada s Postwar Economic Position The GNP doubled during WW2 Wages, savings and tax revenues rose Europeans and Americans were buying Canadian goods
5 Return to Peacetime Rising Confidence: Consumer Demand and the Baby Boom Canadians had saved money for 6 years of war and went on a buying spree for consumer goods A baby boom after the war lasted into the 1960s
6 Return to Peacetime Confidence and Social Security Canadians felt confident because of financial security Unemployment Insurance Act (1940) Family Allowance (1945) Old age pension had existed since the 1920s A health care plan would come about in the 1960s
7 Boom Times in the 1950s & 1960s Growth in the Old Industries There was dramatic growth in the mining and oil industries Towns like Timmins and Elliott Lake grew up virtually overnight due to mineral discoveries. These included nickel, copper, silver, uranium and asbestos
8 Boom Times in the 1950s & 1960s Growth in the Old Industries Alberta s Leduc oil fields were discovered after the war (the tar sands came later ) Alberta s wealth became tied to the oil industries and it still is today
9 Boom Times in the 1950s & 1960s Canada-Under Construction! Houses and buildings of various types went up all over the country to support the growing population There were also megaprojects like subways, railroads, oil fields, hydroelectric developments, the St Lawrence Seaway and the Trans-Canada Highway
10 Boom Times in the 1950s & 1960s The Canada-US Automotive Products Agreement (Autopact) Many small auto manufacturers went out of business in this period; by the 1960s only Ford, GM and Chrysler were left These three signed the Autopact in 1965 to allow limited free trade of autos and parts It lowered costs, but also eliminated the practice of individual factories producing a full range of models; today they specialize
11 Boom Times in the 1950s & 1960s Manufacturing: Consumer Goods Refined consumer products, like Refrigerators, Record players, TVs (black & white) were bought Some new products were dishwashers, colour TVs, hi-fi stereos, 8mm movie cameras and portable transistor radios Service industries expanded in restaurants, department stores and supermarkets. Shopping plazas were new (malls came later )
12 Boom Times in the 1950s & 1960s A Cold-War Economy Some of the growth in mining was directly due to military equipment Nuclear weapons and energy were extensively developed, as were radiation machines for cancer treatment
13 Boom Times in the 1950s & 1960s A Cold-War Economy Radar defence installations were built and maintained across Canada s north The Avro Arrow was developed and (almost) manufactured in Canada
14 Economic Problems Economic Downturn The boom times lasted until about Why did things change? The economies of Europe and Japan finally revived after WW2 The European Common Market (ECM) raised tariffs on Canadian products American wheat surpluses drove prices down
15 Economic Problems Economic Downturn Why did things change? continued Unemployment rose Immigration rose Migration to cities from rural areas More women entering full-time employment
16 Economic Problems Economic Downturn What did the government do? Set up a number of make work projects The Governor of the Bank of Canada said Canada was entering a recession and raised interest rates. PM Diefenbaker disagreed and he was dismissed.
17 Economic Problems Economic Downturn Other Problems: The balance of trade wasn t in Canada s favour; we bought more imported products than those we exported. PM Diefenbaker devalued the Canadian dollar to 92.5 cents, which shook Canadians confidence.
18 Economic Problems Labour Relations in the 1950s-1960s Blue collar workers wages increased 30% between , after a series of strikes Legislation in the 1950s-1960s severely restricted unions By the late 1960s, unions had spread to many more industries and they were more militant
19 Economic Problems American Investment The Canadian economy s recovery in 1962 was partly due to American investment American companies owned 90% of Canadian petroleum and automobile production
20 Economic Problems American Investment Many Canadian factories were American branch plants All of this investment was good, but there were problems as well
21 Economic Problems American Investment Many Canadians feared losing control of their economy to Americans The government introduced tax incentives which favoured Canadian companies It also opened trade with other countries like Cuba and the Soviet Union
22 Economic Problems Economic Change: The Human Impact Family farms began to disappear East coast inshore fishing declined in favour of large-scale offshore fishing. Foreign overfishing was hard to control Traditional northern aboriginal lifestyles changed with the development of Canada s North
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