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The Twenties: Boom

The Twenties: Boom In this context, what does the word Boom mean? A period of rapid growth and high employment Read p. 78 in the text

If these people were doing their stunts today, what reaction would they get? Compare the previous video with the next one.

The first video and the text mention the stock market. What did you notice that was the same, and different between the two videos? The first video and the text mention the stock market. What is it? What do people buy and sell on the stock market? Why do people invest in the stock market?

Economic Boom During the 1920’s the Canadian Economy, and the economies of most countries, began to grow dramatically In Canada, this growth was centered around natural resources What are some of Canada’s natural resources? Energy, pulp, paper, oil, gold, silver, copper, zinc Roughly ¼ of the worlds newspapers were printed on Canadian paper 80% of the world nickel came from Sudbury

How would Canada’s natural resources help grow the economy? Create jobs, profit when sold or traded Demand for Canadas natural resources grew as cars and appliances become more common Who would Canada sell and trade their goods with? The US and Britain Why these two countries?

However close trade with a country isn’t always good. The US has a much bigger population, which means that they can produce and sell products more cheaply than in Canada. Why? So what do you do? In the world of international economics you create a Tarrif A Tarrif is a tax on an imported product that makes it more expensive so that Canadian companies can compete to sell their products

In the 1920’s Canada had a 35% Tarrif on vehicles imported into Canada from the US This means that for every $100 in the price of a US made car, Canadian’s would have to pay $135 So you’re a US car company and you want to sell your cars in Canada, but the Tarrif is so high, you’re worried you won’t be able to make any money. What do you do?

You build a car plant in Canada. That way you don’t have to import your vehicles, because they’re made in Canada And you still get to keep the profits. This is called a Branch Plant and began to become very common in the 1920’s

Advantages for Canadians Disadvantages for Canadians What would be the advantages and disadvantages for Canadians in US companies building branch plants in Canada? Advantages for Canadians Disadvantages for Canadians Large-scale industrial investments were made into Canada Many small Canadian manufacturers were closed down Lots of manufacturing jobs were created Top management positions were often held by Americans Prices were lower because of large-scale production Company decisions were made in the US head office Brand-name products were available for consumers Profits went back to US owners and investors

At one time, as many as 70 Canadian companies were making or selling their own cars. But as the “Big Three” automakers – Ford, GM, and Chrysler – set up branch plants in Ontario, they drove these smaller Canadian firms out of business. The last to fold was the Brooks Steam Motor Company of Stratford, Ontario, which closed in 1926 Read the profile on the Billes Brothers on p. 82

The Twenties: Bust

The Twenties: Bust Times were good for many people in the 1920’s. Unemployment was low, and half of all Canadians owned a car. Do you think everyone benefitted from the economic boom of the 1920’s? No What groups of people would not have seen the same benefit? Maritimers and Newfoundlanders Workers Minorities Aboriginals

Maritimers and Newfoundlanders During the 1920’s the Maritimes and Newfoundland were struggling economically There are a number of reasons for this. Large debt because of WWI (Newfoundland) As Canada got bigger (westward expansion) the distance to Canada’s midpoint got very far from the Maritimes (from Ottawa to Manitoba) Couldn’t attract large manufacturers Demand for coal from Nova Scotia fell because of competition from Alberta’s oil producers. Britain is no longer Canada’s dominant trade partner.

What impression of life in a coal-mining town do you get from this painting?

Workers Business owners and investors made large profits during the 1920’s The regular worker, however, worked long hours at low wages There was no unemployment insurance, or free medical care No pension plan until 1927 Paid $20 per month Had to be 70 years old and have lived in Canada for at least 20 years Have almost no income Money had to be repaid, with interest, after the person died.

Visible Minorities Minorities faced widespread discrimination Many companies wouldn’t hire Asians, or if they did it was for very low wages If you can’t get hired for a job, what do you do? Remember there’s no welfare programs to support you. Although Blacks had the right to vote, there was still not treated as equals In Nova Scotia and Ontario, Black students were sent to separate schools than white students. Often these Black schools were under funded, resulting in a poorer education and fewer job opportunities

Aboriginals Aboriginal people had been living under strict rules since 1876 and the creation of the Indian Act The goal of this act was to assimilate (absorb) aboriginals into Canadian society The Deputy Superintendent of the Indian Act once said the object of his department was “to continue until there is not a single Indian in Canada that has not been absorbed into [mainstream society]” Starting in 1920, all First Nations children aged 7-15 were required to live most of the year at a Residential School

Residential Schools In 1920 there were 80 government funded residential schools in Canada The aim was to remove children from their home and culture Use the education system to assimilate them into Canadian society Traditional languages, clothing and religious practices were strictly forbidden Children were required to speak English or French, wear uniforms and become Christian There have been many proven cases of physical and sexual abuse that took place at residential schools

https://www.youtube.com/watch?v=s_V4d7sXoqU https://www.youtube.com/watch?v=v_tcCpKtoU0 https://www.youtube.com/watch?v=GbZDUvvy258 What went wrong?