Economic Boom, Economic Problems CANADIAN HISTORY 1201

Winnipeg General Strike, 1919 o This was the most important and dramatic strike in Canadian history o 12,000 workers in metal-building trades wanted the work week reduced and wages increased o The employers refused to deal with the union so the employees went on strike o To show their support, 30,000 workers from other trades went on strike as well ◦This resulted in a General Strike ◦Almost all industries and key services shut down

Winnipeg General Strike, 1919 o Violence erupted in Winnipeg and one striker was killed and strike leaders were arrested and jailed o June 21, 1919 became known as Bloody Saturday o The government, factory owners and police joined forces and defeated the workers and forced them to return to work o In the long term, the strike drew attention to social and economic conditions that working people had to endure o In the 1920s labour leaders were elected to all levels of government

The Decline of the National Policy o In the late 1800s John A. MacDonald’s Conservative government put in the “The National Policy” ◦Its purpose was to protect the Canadian manufacturing industry and to avoid becoming dependant on the United States o In the 1920s there was a New Economy in Canada based on: o Electricity ◦Mining – INCO in Sudbury (Nickel) and ALCAN (Aluminum) ◦Pulp and Paper – Mills in Quebec, Ontario and New Brunswick o Manufacturing ◦Industrial developments in central Canadian urban centers such as Montreal and Toronto

o Manufacturing (cont’d) ◦The importance of the economy shifted away from the western provinces to Ontario, Quebec and British Columbia ◦To access Canadian resources for automobiles and manufacturing, there were massive amounts of American investment in Canada ◦Trade with Britain declined and trade with the United States increased ◦The changes in the Canadian economy shifted from East-West trade to North-South trade The Decline of the National Policy

Economy on the Upswing o By the mid-1920s, the Canadian economy was on the upswing o Foreign investors had a new confidence in Canada and investment picked up o Wheat ◦ prices rose steadily ◦Exports expanded to Europe ◦New technology (i.e. trucks, mechanical harvesters) ◦New strains of wheat developed ◦Co-operatives were organized ◦Businesses owned by farmers which loaned money to other farmers at low interest rates

Economy on the Upswing o Pulp and Paper ◦Newsprint paper production became the 2 nd largest industry ◦Americans needed Canadian pulpwood for their newspapers ◦Canada’s forests were being destroyed ◦Many workers left Canada to work in U.S. industries o Hydroelectric Power ◦Electric power began to replace coal ◦More demand for electricity in homes with the invention of new electrical appliances

Economy on the Upswing o Oil and Gas ◦The 1920s were known as the “Oil Age” with the increased use of automobiles ◦Oil and gas was also used for cooking and harvesting ◦The boom in the oil and gas industries had a devastating effect on the Maritimes where coal was mined ◦Many had to move to central Canada to find work o Mining ◦Many exciting mineral discoveries (i.e. copper, nickel, lead and zinc) ◦Rich mining deposits developed with American financing The effect of the Boom Years: people were optimistic and tended to spend more money!