The Rise of the “Welfare State” Canada in the 1950s & 60s and the Creation of a Social Safety Net

Canada “Booms” Economic Boom: Post-WWII, Canada’s vast resources were in high demand, creating an upsurge in all industries and leading to more jobs Large oil deposits made us almost self-sufficient Uranium (now in high demand) was discovered in Canada The gov’t began a massive building program to improve transportation for people and industry The Trans-Canada Highway (1950) The St. Lawrence Seaway (1951)

Population Boom: WWII had delayed many young people from marrying and starting families When WWII ended, the young men returned and soon the “Baby Boom” began In 10 years (1949-59), Canada’s population grew from 13.5 million to 17.5 million These new families purchased homes, cars and lots of consumer goods The government spent money on building new schools, libraries, hospitals and other new facilities to accommodate the growing population

Things to Think About…. What might a sudden, massive rise in population do to a nation? What might a government have to do to deal with this rise? How might this effect the economy? What might be the effect on a society’s priorities when so many people become parents?

A new Mindset Some worried that the end of WWII might bring an end to economic prosperity Many remembered the Great Depression and what it was like to be out of work or poor The CCF (later the NDP) became prominent under its leader Tommy Douglas The CCF supported programs that benefited workers, protected families and increased government involvement in the economy Although they never formed a gov’t, the popularity of the CCF influenced the Liberals (and later the Conservatives) to support programs that strengthened Canada’s social safety net

Welfare State: Social Safety Net:

Government Social Programs National Housing Act (1946): Created the Canada Mortgage and Housing Corp.(CMHC) Created to improve housing conditions (building codes, renovations) Helped to create decent, affordable housing Helped families to secure mortgage loans Family Allowance (1945) The “Baby Bonus” was a small, fixed amount of money given to families for every child It was provided regardless of income

Employment Insurance (1941): Employed people paid a certain amount of their wages into the fund as “insurance” If they lost their jobs, the fund would provide them with money to live on This was to avoid the crushing poverty experienced by many during the Depression Old Age Security Act (1951) & The Canada Pension Plan (1966) These were programs to provide for the elderly when they could no longer work People pay into the CPP while they work and then get a fixed amount of money once they reach the age of 60 This was one of the first examples of “co-operative federalism” where both Federal and Provincial gov’t work together to achieve a goal

The Suburbs and Universal Healthcare Answer the following Questions: What might be the benefit of all these new social programs? What might be the downside if the new social safety net? We pay for these programs with our taxes. Is it fair that some people will pay for things that they might never use (EI, etc.) and others will benefit from it? Why?