1. Canadian Economy Post WW1

2. Improving Economy
Beginning of 1920s – Depression (Effects of WW1 Debt)
Mid 1920s – Recovery
Wheat was important export
Huge growth in Natural Resources exploitation
Paper/Pulp Mills,
mining, forestry,
hydro stations

3. Trading Improves Pre-WW1 – Post WW1 – Traded mainly with Britain
Britain = In debt
USA = New World Economic Leader
USA investment in Canada INCREASED
Trade with USA INCREASED (eg. 75% of newsprint produced exported to USA)

4. USA & Canada Relations
Instead of lend money to Canada (like Britain did)…USA investors setup Branch Plants in Canada
Branch Plant – Businesses owned & Controlled by USA companies, but operated in Canada (and provided jobs for Canadians)
Benefit for USA…they did not have to pay taxes to “Import” products…because these products were produced in Canada! (eg. Car companies – General Motors, Ford, Chrysler replaced all Canadian Car makers…and did not pay tax in Canada)

5. USA / Canada cont’d Canadians happy  with USA investments…
Long term consequences…”ahh who cares”…nobody thought of this
Canada economy based on Primary Industries (harvest raw materials…logging, mining, etc)
Raw materials
USA used Raw Materials to make new products (Secondary Industries)

6. Primary & Secondary
Primary Industry – extract Raw materials (eg. Mining of lead, zinc, copper, metals)\
Secondary Industry – use raw materials & make new products (eg. Use metals from mining to make cars)
Which is more profitable ?
Why?

7. One Manufactured Product
Canada exported 1 manufactured (processed) product to USA Post WW1
ILLEGAL ALCOHOL (Bootlegging to USA)
(Prohibition = NO ALCOHOL SOLD)
Prohibition took place in both Canada & USA during WW1
Canada Prohibition ended in 1920
USA Prohibition ended in 1933

8. Urbanization of Canada
Growing economy & manufacturing sector in Canada => more people move to city for jobs
ALSO…farming & technology = less labour workers for farming (because of machinery)…less people needed in rural farm area
Modern Canadian cities formed this time (Vancouver, Toronto, Ottawa, Montreal)

9. Problems that occurred..
Slums (homeless/poor people concentrated)
Pollution (from factories)