DOSSIER 4 – THE CONTEMPORARY PERIOD Chapter 2 – Economy & Development

Review  Economic development during the…  Natives BC – 1608 AD  The French Regime  The British Regime  The Contemporary Period 1867-Today

PART I Development in the 3 Sectors

Economic Development since 1867 HHow did Canadian Confederation change the economic landscape? CCanada was now an independent country IIn control of its own economic policies WWhat did John A. MacDonald have to promise certain provinces in order to join? AA train connecting Canada from coast to coast CCertain economic/political freedoms

Canada’s Development – The Railroad  As the railroad progressed:  More provinces started to develop out West  In order to stimulate growth inside Canada…what kind of economic policy do you think they used?  Protectionist Policy  Why? To make sure Canadian business could grow  It was called the National Policy

Economic Development  During the 1800’s – Canada’s economy was mostly based in what sector(s)?  Primary: Fur, Timber, Fishing and agriculture

Economic Development  The Primary Sector:  In the 1800’s there was still a lot of famine  This was mostly due to industrialization and urbanization  And the fact that people were working, but times were rough  1930’s = the mechanization of farming  1940’s = electricity (everywhere)  1950’s = electrical appliances!

Economic Development  The Primary Sector (cont’):  Agriculture began to diversify  Number of farms Size of Farms  Productivity of the farms also increases  Used to be a FAMILY business – now run as small/medium sized businesses  what is a COOPERATIVE?

Economic Development  The Primary Sector (cont’):  Forestry – still offering lots of employment  New natural resources are developed  Mining: Nickel, gold, zinc, silver and copper in Abitibi- Témiscamingue Asbestos in the Eastern Townships Iron in Cote-Nord Copper in Gaspésie

Economic Development  The Secondary Sector  1800’s - Industrialization first affects light industries Leather, shoes, clothing, tobacco, food (butter, milk, cheese, beer, sugar) etc.  By the 1900’s – more export oriented industries start to develop Pulp and paper, wood processing, newsprint Ore processing (aluminum, iron) Chemical production (oil refining) Transportation materials (especially for the railroads)

Economic Development  The Secondary Sector  Since 1970 – the secondary sector has decreased  Mostly due to cheaper labour cost in places like Asia, Mexico and India

Economic Development  The Secondary Sector  Hydroelectricity What is “potential?” The first hydroelectric stations were built in the late 19 th century The bigger projects started after the 1920’s But these projects were all privately owned Shawinigan St-Maurice The Saguenay The Ottawa

Economic Development  The Secondary Sector  Hydroelectricity In 1963 the Quebec Government nationalized the electricity industry – why? Quebec became a world leader in hydroelectric technology Although Quebec has attracted a lot of business because of its cheap electrical rates…what are some of the consequences? Flooding – environmental damage Native Rights – most of these projects are on their land!

Economic Development  The Tertiary Sector  The tertiary sector has been growing since the 20 th century  The creation of the “office worker”  Consumption therefore retail  A more socialist government?  Increased Standard of Living ?  Also, after the 1950’s – more and more women were becoming part of the work force.

Creating your own Graph Activity # 5

Activity # 5 - Graphing  Create your own graph  Using table 2.28 on page 78, create a graph that shows the changes in the various sectors from 1850 to  Make sure your axises are labelled correctly and that your graph has a title.  Then write up a short paragraph which discusses the shift with the sectors and how Canada has changed as a result.

PART II Economic Cycles

Concentration of Capital  By the end of the 1800’s – the means of production = virtual monopoly  The Dominant Social Class  Examples:  Canadian Pacific Railways & Laurentian Paper Company – borrowed huge sums of money to build their infrastructure.  The banks they borrowed money from were only controlled by a few Anglophones.

Concentration of Capital  After The Great War – This would change (2.34)  English Capital: Decreased  American Capital: Increased  Good or Bad?  This helped with the development of new economic ventures (mining, industrial growth)  Created a dependence on the United States  Which would lead to things like…

Economic Cycles  Industrial societies: growth vs recession  Causes of Recessions? Overproduction Decrease in demand Increased prices The media(?)  Causes for growth? Increased consumption Low credit rate = easy to borrow money

The Great Depression  The Roaring 1920’s  Lots of production  No control over borrowing  Heavy investment in the stock markets  Black October…  One thing goes wrong, everyone starts selling their stocks…  Once it starts, it is hard to stop.  Suddenly people are losing their life savings – their homes, their businesses, etc.

The Great Depression  Almost all industrialized countries were affected.  No one could sell their products, factories closed, unemployment rose, consumption decreases…  In Quebec, the average income fell 37%  The unemployed often packed up and moved in search of job opportunities  Many ended up out West

World War II  War breaks out = Full Employment  War is generally good for business  Everyone is working, but food and essential goods are rationed  Women are also helping with the war effort

The Baby Boom  After the war…  Workers had accumulated savings  Employment was high  People were getting higher wages  Demand increased = MASS CONSUMPTION  This period of economic growth from WWII would last for 30years

Activity #6 NEIGHBOURS – by Norman McLaren

Activity #6 - Neighbours  Watch the short movie Neighbours by Norman McLaren. 1. What is the basic message of McLaren’s film? 2. What do you think is the most effective/creative part of McLaren’s production? 3. How does it apply to what was happening in North America during the 1950’s? 4. Do you think McLaren’s message is still valid today? Explain your answer with a specific example.

The First Energy Crisis 1973  In 1973, The Organization of the Petroleum Exporting Countries [OPEC] decided to withhold oil because the US was funding Israel’s army.  The Result? The rise in the price of oil caused a rise in the price of transportation…  Prices increased everywhere, unemployment grew, Interest rates also went up in an attempt to control the situation.  Quebec and Canada would experience many other recessions – the biggest being last October 2008.

PART III

Economic Policies  Before the Great Depression, the Canadian government’s economic policy was…  The Government was only involved in:  Encouraging private enterprise  Constructing transportation networks  Investments (RRSP’s, Savings bonds, etc.)  Protection tariffs

Economic Policies  However, after the Great Depression – the government needed to help.  Agricultural colonization In Quebec, L’office du Credit Agricole 1936  Bank of Canada 1934  Unemployment insurance  Taxation (WWII = income tax)  Economic liberalism – questioned?

Economic Policies  During the Quiet Revolution – 1960’s  Régie des Rentes du Quebec 1965 – wage reductions, retirement pensions, family allowances, etc.  Caisse de Dépôt et de Placement du Quebec 1965 – to manage revenue and to invest in the economic development of Quebec

Economic Policies  Foreign Trade Policies  In 1866 – the U.S. decided not to re-new the Canadian-American Reciprocity Treaty of 1854  The Americans also adopted a Protectionist Policy – AT THE SAME TIME!  As a result, Canada was hit by a tough recession

Economic Policies  Foreign Trade Policies  In 1878, Canada adopted the NATIONAL POLICY in order to make things better: Encourage immigration, especially towards the West Improve railway transportation Impose customs and tariffs of 25 to 30% on the importation of manufactured goods  Did it work?

Economic Policies  Foreign Trade Policies  1993 – The North American Free-Trade Agreement [NAFTA] United States, Canada and Mexico Results? Canadian exports increased Manufacturing jobs relocated

Work Relations  1800’s Industrialization = New Social class…  Horrible working conditions led to the creation of Unions (which were illegal until 1872)  BUT…when they did make Unions legal, the Canadian government imposed strict rules.  In 1885, the government of Quebec legislated the first laws limiting the number of hours workers could work and a minimum age for workers. 60 hours for women, 72 hours for men 14 years for girls, 12 years for boys

Work Relations  The 1940’s to Today  Lots of strikes  As a result, working conditions slowly improved  Better wages, vacation funds, pensions, social benefits  Disparity between men and women  Because of the growth of unemployment in the Tertiary Sector and technological advances – education has become an essential condition for employment.

THANK-YOU Ninjas have Unions too…