Canadian History 1201 Unit 6 Canada Matures: Growth in the Post-War Period (1945-1970) Student Workbook 6.1 Student Name: SCO 2.0: The student will be expected to demonstrate an understanding of the economic, political and social conditions in Canada following the Second World War and Canada s changing role on the international stage. 6.1: Economic Changes: growth of primary and secondary industries, infrastructure, Cold War economy, labour relations
Return to Peacetime Veterans Come Home 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 Veterans could buy building lots at good prices Many Canadians could get financing to buy houses under the National Housing Act (1944) Canada s Postwar Economic Position The GNP doubled during WW2 Wages, savings and tax revenues rose Europeans and Americans were buying Canadian goods 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 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 Section Review Textbook Questions (Pages 250-252) Page 252 Question #3: How would the benefits provided to returning veterans strengthen the economy?
Page 252 Question #5: What are three reasons for Canada s strong economic position after the war? Page 252 Question #7: Provide evidence from this chapter that shows that the federal government was prepared to spend money on economic security for Canadians. Which government measure do you think was most significant? Why? 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
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 Canada-Under Construction! Houses and buildings of various types went up all over the country to support the growing population There were also mega-projects like subways, railroads, oil fields, hydroelectric developments, the St Lawrence Seaway and the Trans-Canada Highway 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 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 ) 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 Radar defence installations were built and maintained across Canada s north The Avro Arrow was developed and (almost) manufactured in Canada Section Review Textbook Questions (Pages 257-263) Page 263 Question #2 (a): What were some domestic, or internal, reasons for the economic boom of the 1950s and 1960s?
Page 263 Questions #2 (b): How did international factors boost the Canadian economy? Page 263 Question #4: American influence on the Canadian economy was growing in the 1950s and 1960s. Use evidence from the topic to show its positive and negative effects on Canada. Page 263 Question #5: Which of the major construction projects mentioned in this topic (and shown in Fig. 7.3.h) do you think was most important for Canada s development? Why?
Economic Problems Economic Downturn The boom times lasted until about 1957. 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 Unemployment rose Immigration rose Migration to cities from rural areas More women entering full-time employment 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. 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. Labour Relations in the 1950s-1960s Blue collar workers wages increased 30% between 1945-1950, 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 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 Many Canadian factories were American branch plants All of this investment was good, but there were problems as well 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
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 Section Review Textbook Questions (Pages 264-268) Page 268 Question #3: What were three problems the Canadian economy faced in the 1950s and 1960s? Page 268 Question #4: What were four negative impacts of economic development on Canadians at this time? Page 268 Question #5: Create an organizer listing the pros and cons of American investment in Canada.