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1867  to  present  day  

ECONOMY  IN  THE  CONTEMPORARY  PERIOD  

•  Confederation (1867) is when Canada became a country with some power to make decisions about its own future –  Canada was called the Dominion of Canada

•  The 4 original provinces were Quebec, Ontario, New Brunswick, Nova Scotia

–  Before this, they were all former British colonies

•  In 1870, HBC sold Rupert’s Land to the Dominion (this is how we got a lot of territory west of Ontario)

•  There are 4 economic factors why we decided to become a Dominion

How the Economy Affected Confederation

1.  End of Britain’s Protectionist policies and beginning of free trade

–  Forced British North American (BNA) colonies to develop better trade relations w/ each other in order to cope w/ international competition

2.  1st Phase of Industrialization –  Strengthened connection b/t BNA colonies b/c of the vast transportation

networks

3.  Threat of American expansion –  US wanted territories west of Canada – this encouraged the BNA colonies

to make strengthen their business ties

4.  End of the Reciprocity Treaty with the USA –  Canada used to be able to trade raw materials with the US without having

to pay customs duties…but in 1854 the US cancels this! –  (Be sure to check out your worksheet on the Reciprocity Treaty)

The 4 Factors leading to Confederation

•  When  we  first  became  a  country,  Canada  was  very  poor.        –  We  didn’t  have  a  lot  of  powerful  industries.      –  We  didn’t  have  a  big  populaCon  –  We  had  few  trade  partners  

•  Unemployment  was  on  the  rise!  •  Even  banks  weren’t  doing  well    

because  people  didn’t  have  capital    to  invest!  

•  Sir  John  A.  Macdonald  –  the  first  prime  minister  had  to  figure  out  what  to  do!  –  His  soluCon  was  the  NaConal  Policy  which  was  implemented  in  1879  –  It  was  a  very  good  plan  for  Canada!  

Canada  is  very  poor!  

1.  To protect Canadian industry using a protectionist tariff policy

–  Higher customs duties on most goods made elsewhere in the world (especially the US)

2.  To encourage the expansion of the railway network –  To link the provinces and thereby increase trade –  Facilitate transportation of immigrants across Canada

3.  To promote immigration to Canada (especially the west) –  Stop threat of American expansion –  Increase the labour force –  Create a new consumer market

The National Policy (Be sure to check out your worksheet on the National Policy)

Exam  Documents  about  the  naConal  policy  

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“Give  me  a  Home  market  for  my  produce  amongst  the  well  paid  mechanics  every  Cme”  

•  About 1850-1900

•  Before this time, apprentices learned their trade from a master craftsman for accommodation and food

•  Starting in the 19th Century, ppl became salaried workers and they were largely unskilled –  They could not make an entire product themselves –  They could make part of it – a team would be

assembled where each person was responsible for 1 step (example of shoemaker)

(See  worksheet  on  the  1st  Phase  of  IndustrializaCon  &  2nd  Phase  of  IndustrializaCon)  

Meanwhile,  the    1st  phase  of  industrializaCon    

had  started  

•  Factories were built for large scale production

•  Coal was used as the main source of energy –  It’s the first time that machines help a lot in the

production process (“mechanized”)

•  Natural resources are exploited to make other products. –  Timber –  Leather –  Dairy –  Tobacco

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•  Living  condiCons  in  working  class  neighbourhoods  were  ciCes  terrible  (remember  what  we  talked  about  in  “PopulaCon”)  –  Unhygienic  –  Unhealthy  housing  –  Air  &  street  polluCon  –  Over  crowding  

•  Remember  this  is  when  there  is  URBANIZATION!!!  –  Ppl  need  jobs  outside  of  agriculture  –  They  need  to  live  close  to  their  work  because  there  were  minimal  transportaCon  opCons  other  than  walking  to  work  

–  Eventually  streetcars  were  developed  to  help  ppl  get  places  (closer  to  1900)  

Working  class  Neighborhoods    in  the  late  1800’s   A streetcar in Mtl in 1906

•  Working  condiCons  were  awful  because  there  were  no  labour  laws  –  6  day  work  week  of  60-­‐70  hours  – No  minimum  wage  – Women  and  children  were  paid  significantly  less  than  men  

–  Child  labour  was  common  – Dangerous  and  unhygienic  working  condiCons:  Stuffy,  dirty  air,  use  of  dangerous  machines  with  no  protecCon  

– UNIONS  WERE  ILLEGAL!  

Working  condiCons    in  the  late  1800’s  

•  About 1900-1929

•  Energy sources were much more advanced than coal! –  Hydroelectricity (REALLY IMPORTANT!!!) –  Oil

•  Natural resources were still exploited to make other products –  Copper, Silver, Gold, Zinc, Asbestos –  water

•  Compared to the 1st phase of industrialization, more specialized workers AND mechanization was needed for the 2nd phase to be sucessful

The  2nd  Phase  of  IndustrializaCon  begins   Typical  Exam  documents  about  the    2nd  phase  of  industrializaCon  

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•  Côte-­‐Nord:  Ctanium  and  iron  •  AbiCbi  and  Gaspésie:  copper  and  wood  

Sector Type of Production Pulp & Paper Newsprint, cardboard, etc. Mining Iron, steel, aluminum, etc. Chemicals Dyes, preservatives, etc. Oil Cars, plastics, etc.

•  In  the  early  1900’s,  workers  began  to  unionize  to  fight  for  beier  working  condiCons  (Many  of  these  1st  unions  were  based  out  of  the  US)  

•  They  demanded:  – A  reducCon  in  working  hours  – ProhibiCon  of  child  labour  – Beier  pay  

•  Factory  owners  were  not  pleased…union  strikes  olen  ended  badly  

•  The  Catholic  Church  decided  to  support  unionizaCon  and  helped  workers  form  “Catholic  unions”  – E.g.  ConfédéraCon  des  travailleurs  catholiques  du  Canada  (CTCC)  founded  in  1921  

The  fight  for  beier  Working  condiCons    

•  In  the  late  1800’s  there  were  improved  produc@on  techniques.      

•  The  biggest  change  was  the  development  of  farm  machinery  

•  Also,  the  development  of  the  Québec  dairy  industry  was  important    –  they  someCmes  put  a  picture  of  cheese  on  the  exam…sounds  silly  but  you  need  to  know  it’s  the  2nd  phase  of  industrializaCon  

•  Between  1945-­‐60    – most  rural  areas  in  QC  got  electricity  – People  worked  an  agricultural  coopera@ves  

•  Aler  1980  –  Improved  access  to  internaConal  markets  – Focus  on  organic  producCon  – ReducCon  in  the  area  of  land  under  culCvaCon  

 

Yes…Agriculture  was  sCll  important!  

•  Agricultural sector that experienced the greatest progress after 1880

•  Produced: milk, butter, cheese, and cream

•  1890 à more than 80% of cheese production was for export!

•  This encouraged the development of schools to train ppl in the dairy industry

Dairy Industry

•  The Great Depression = MAJOR recession

•  Between 1929 and 1933, Canadian exports fell by 50%

•  More than 25% of Canada’s employable population were out of work

•  Municipalities which were responsible for helping their poor were on the brink of bankruptcy and needed help

•  Worst year was 1933 à after that it VERY, VERY slowly started to get better

The  1930’s  and  the  Great  Depression  

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•  Causes  –  Stock  market  crash  – OverproducCon  of  goods  –  not  enough  ppl  to  buy  – High  tariffs  

•  Economic  effects  – Decline  in  exports  and  prices  –  Bankruptcies  –  Factory  closings  –  Reduced  wages  

•  Social  Effects  – High  unemployment  –  EvicCons  – Misery  and  poverty  

(see  the  worksheet  on  the  Great  Depression)  

the  Great  Depression  

•  Government  reacCons  – Work  camps  – Shorter  work  week  – Direct  aid,  soup  kitchens  – Public  works  – “back-­‐to-­‐the-­‐land”  (QC  only  – Prime  Minister  Bennei’s  “New  Deal”  

•  PoliCcal  Consequences  – New  poliCcal  parCes  were  formed  that  are  concerned  about  social  welfare  and  sharing  the  naCon’s  wealth  

– The  government  became  increasingly  involved  in  the  management  of  the  economy  and  society  

Typical  exam  documents  about  the  depression  

“Back to the land” movement in QC

•  Rich man •  PM during the

Depression •  Ppl wrote to him to ask

for aide •  He sent $ from his own

accounts to all those who asked for help

Prime  Minister  of  Canada  Richard  Bedford  BenneI  

Some interesting info

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•  Cars  being  pulled  by  horses  became  a  common  sight  during  the  Depression.    •  During  the  boom  years  of  the  1920s,  many  Canadians  had  bought  cheap  vehicles  

for  the  first  Cme,  but  during  the  depression,  many  found  they  did  not  have  enough  money  to  operate  them.  This  was  especially  true  in  the  hard-­‐hit  Prairie  Provinces.    

The Bennett Buggy •  Canada entered the war in Sept 1939 •  Again, the Allies relied on Canadian

industry for food and equipment •  This increased demand, which increased

production, which resulted in more jobs, which really brought Canada out of the Depression

Impact of WWII

•  Growth of the tertiary sector – Govt. wanted to offer more social services – Built new public and administrative

infrastructures – # of civil servants increased – Training and specialization of workers increased

•  Mass Consumption – # of unions increased and ppl got more rights @

work (p. 213) •  Opening of Resource Territories

– Demand for resources in Canada was high (esp. from US)

– Large American companies invested in development of new mining towns in QC

– During 1950’s QC depended on trade relations w/ USA ***

Post WWII Doc.  4  -­‐  p.  141  Division  of  economic  sectors  according  to  the  GDP  in  2005  

•  How do the division of the economic sectors compare from post WWII to now?

A Little Comparison – Then and Now

What does this map show you? What kind of information can you use from it?

Opening of Resource Territories

Doc. 128 – p. 214 •  Since the Great Depression, govts have become more involved in managing the economy – Goal = to stabilize economic fluctuations

•  Impact of Quiet Revolution on Economy – Quiet Revolution = time of major change in QC – Goal: QC in charge of QC businesses à

“Masters in our own house” •  At this time, the govt took charge of:

– Education & healthcare...making it a Welfare State

– Construction of new public institutions and infrastructures

Public Investments in the 1960’s and 70’s

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•  Francophone Quebecers sought to take control of their economy

•  Particularly w/ regards to the management of resources and large industries

•  1962 – QC govt bought out most of the private electricity companies and merged them w/ Hydro-QC in order to nationalize the production and distribution of electricity

Economic Nationalism of the 60’s

What were the effects of the construction of these hydro-electric projects on the territory and the population of the affected regions?

Doc. 132, p. 217 Construction of Daniel-Johnson Dam in 1967

•  Active in: –  Public service –  Union movements –  Public corporations and

business world •  Engeneering in QC

became an export product!!!

•  World’s Fair of 1967 offered QC companies a chance to show off –  Bombardier –  Lavalin –  SNC

Francophone Business Class Emerged

•  Teritary sector continued to expand •  CEGEP system was created in the 60’s •  More ppl started going on to get university

degrees as well

Effect of higher education on the economy

•  A division still existed •  The govt made some effort to get rid of this

disparity •  They were largely unsuccessful or had little

impact •  Most still chose to live in urban economic

hubs because this was where most jobs were available

Hubs and Outlying Regions

How did the construction of highways contribute to urban sprawl? In what ways was the construction of public infrastructures, such as highways, an expression of the State's desire to support the province’s economy?

Doc. 130, p. 216 Construction of Autoroute 30 in 1975

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� Who  covered  the  construcCon  costs  for  the  public  transportaCon  networks?  

Document 137 – page 219 The Construction of Mtl’s Metro – Jarry Station in 1964

•  Quebec’s debt grew in the 1980’s after the spending sprees of the 60’s and 70’s

•  A recession hit in the 80’s •  1996 – Premier Bouchard aimed for a “zero

deficit” so that we could start paying it off •  NAFTA – North American Free Trade

Agreement (1994) – Created the world’s larst free trade area – Province’s exports increased – esp.

Technologies, telecommunications, and aeronautics

Since the 1980’s

•  We have been competing on an international market

•  We have faced problems with business de-location – A change in the geographic location of a

company’s activities, particularly to reduce production costs

•  How we offset it: – Encourage companies and the labour force o

specialize – Implement measures to help ppl who lose their

jobs due to global competition find new jobs in QC’s economy

•  QC’s tertiary sector continues to grow, while the primary and secondary sectors are in decline

Since the 80’s...globalization •  Which economic

sector is affected the most by business de-location? Explain your answer.

Document 150 – Business Delocation

QUÉBEC’S  ECONOMY  TODAY  

•  Knowledge  based  economy  with  new  and  specialized  industrial  sectors  – A  lot  of  labour  force  training  – Numerous  investments  related  to  research  and  development  

•  3  sectors  of  an  economy  – Primary:  exploitaCon  of  natural  resources  – Secondary:  processing  of  raw  materials  – TerCary:  providing  services  (business,  educaCon,  health,  finance)  

Overview  of  QC’s  Economy  

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•  Economic  hubs  – Montreal  – GaCneau  – Quebec  City  – Trois-­‐Rivières  

•  Economic  hubs  provide  the  majority  of  services    

•  Home  to  the  majority  of  the  province’s  processing  industries  

•  Ppl  are  airacted  to  these  areas  because  of  employment  opportuniCes  

Economic  hubs  

•  Areas  outside  of  major  urban  centers  – Most  of  the  Cme  they  depend  on  the  exploitaCon  of  natural  resources  in  their  territory  

•  Examples  of  regional  economies  – Motérégie:  agriculture,  dairy  producCon,  hydro,  mining  

– LaurenCdes:  exploitaCon  of  forests,  dairy  producCon  

– Côte-­‐Nord:  Fishing,  exploitaCon  of  forests,  hydro,  mining,  aluminum  

– Mauricie:  hydro,  Cmber,  pulp  and  paper,  agriculture,  dairy….  

Regional  economies  

•  QC  has  a  lot  of  natural  resources  

•  We  use  them  in  QC  as  well  as  export  them  

•  Our  main  natural  resources  are:  – Water  – Forests  – ore  

Natural  resources  

Imports    

1.   Hydrocarbons  –  Energy  source  –  combusCble  fuel  

source  –  In  solid  form  they  take  the  form  

of  asphalt  –  Used  in  gasoline,  roofing  

compounds,  pavement  composiCon  

2.   Motor  vehicles  –  Cars  &  other  vehicles  

Exports    

1.   Aeronau@cs  –  E.g.  Bombardier,  Prai  &  Whitney,  

Rolls-­‐Royce,  Mecachrome  

2.   Dam  construc@on  –  Dams  =  energy  producCon    

3.   Performing  arts  –  Cirque  du  soleil  

Imports  &  exports  

1.  RecogniCon  of  professional  qualificaCons  with  France  

– Goal  is  to  help  people  from  France  get  permits  to  pracCce  a  profession  or  trade  in  Quebec  (and  vice  versa)  

– Created  in  2008    2.  Labour  mobility  and  the  recogniCon  of  

professional  qualificaCons  in  the  construcCon  industry  with  Ontario  

– The  right  to  equal  access  to  bid  for  work  on  construcCon  projects  in  Ontario  and  Quebec  

– Created  in  2009  

Our  main  economic  partnerships