Canadian History 1201 THE ECONOMY

 Natural Resources and Foreign Trade were important parts of Canada’s economy  There was a shift to include a stronger manufacturing base  Control of the Canadian economy was increasingly based in Central Canada  Due to the the huge farming boom A CHANGING ECONOMY

 A Capitalist System was developing  Means of production are privately owned by individuals or corporations that compete with one another to produce good and services for profit  Capitalists make decisions about products, volume of production, and selling price based on the demands of consumers  Mass Consumer Culture emerged  High levels of consumption by all levels of society A CHANGING ECONOMY

 People were moving to more urban areas so they were becoming less self-sufficient and relied on buying manufactured goods rather than making their own or relying on local producers  Such purchased items were clothes, tools and food products  New products on the marked included household appliances, new farm machinery and automobiles A CHANGING ECONOMY

 Due to the shift towards a Capitalist System there was a move away from the blacksmith’s shops, mills and workshops  Only a small number of people remained employed in these areas  New factories were mass-producing products in factories that employed hundreds  Workers joined or created Unions  Groups of workers would join together to protect and promote their interests LIVES OF WORKERS

 Primary Industries  Those industries that harvest, extract or produce natural products  Examples: farming, fishing, mining and lumbering  Export of wheat became an important part of the Canadian economy  Canada’s forests were also being harvested to meet the demand of the growing international demand for lumber, pulp and paper  Before 1900, most of the countries wealth depended on primary industries INDUSTRIAL GROWTH

 Secondary (Manufacturing) Industries  Produce finished products from primary goods  For Example: furniture from wood, fish nuggets from fish  20 th century rapid population growth increased demand for manufactured goods  Products produced included: tractors, nails, pans, buggies, canned meats and vegetables  George Foss built Canada’s 1 st gas driven car in 1897 INDUSTRIAL GROWTH

 Tertiary (Service) Industries  Industries include financial services, clerical services, transportation, utilities and education  This was a new industry forming in the early 1900s INDUSTRIAL GROWTH

 Refers to the total dollar value of the goods and services sold for the country in one year  The GNP per Capita takes that dollar value and divides it by the population of the country  Increase in population led to increase in tertiary industries GROSS NATIONAL PRODUCT (GNP)

 For example: If the GNP for Mooresville was $5,000,000 and there were 1,000 people in the country, then the GNP per capita would be: $5,000,000 / 1,000 people = $5.000 per person (or a GNP per capital of $5,000) GROSS NATIONAL PRODUCT (GNP)

 Trade in the 19 th century was based on exporting primary goods and importing manufactured goods  John A. MacDonald adopted a policy of high Tariffs (taxes) on foreign goods to encourage people to buy Canadian goods FOREIGN TRADE

 Manufacturing was increasing but primary exports were still the most important part of the export trade  There was a shift in the market for Canadian goods  Increase in trade to the US  They were interested in mineral products and newsprint FOREIGN TRADE

 New technology helped develop industries  Refrigerated railway boxcars, telephones, typewriters fueled the industrial boom  Power sources such as steam and electricity allowed factories to develop TECHNOLOGY AND THE INDUSTRIAL BOOM

 Improvements in machinery made jobs easier, faster and this required fewer workers  Goods were being Mass Produced  Large scale production or distribution  Assembly lines and specialized machinery led to mass production  Sam McLaughin produced car bodies for Buick engines TECHNOLOGY AND THE INDUSTRIAL BOOM

 More goods produced  Less cost  Increase in modern communication that reaches a vast audience  For example – silent motion pictures IMPACT OF MASS PRODUCTION

 Loss of traditional jobs and skilled workers  Working in loud factories  No specialized workers  ARE THESE POSITIVES OR NEGATIVES?? * Factories Handout IMPACT OF MASS PRODUCTION