Economic Change and Divisions in Canada:

What is the cause and significance of the centralization of provincial powers? Is U.S. foreign investment a threat? Is It a necessity? How was post-war economic growth distributed in Canada? What groups got more or less and why?

Distribution of Government Powers: During the war: centralization of power to Federal government P.M. Mackenzie King wants to make powers permanent Some oppose: too much federal power, should be in hands of private industry Creation of social programs during war (unemployment insurance, family allowances) – Canadians want to keep

Distribution of Government Powers: How to continue social programs when some provinces cannot afford? – Transfer taxation powers to federal government – Federal control of social programs – Give provinces revenue to pay for health and education Equalization (transfer) payments to provinces: revenue from wealthier provinces helps fund programs for poorer provinces

Post-war Economic Prosperity: Transition to peacetime economy = job loss for those in armed services and munitions industry New industries, products from wartime inventions (e.g. plastic) Natural resources wealth: metals and minerals, boom towns around mines 1947: Oil discovered in Alberta Ontario: manufacturing, 99% of auto industry Extent of environmental impact of these industries not yet apparent

Infrastructure: Towns and cities growing: need improvement in infrastructure Sewers, roads and highways, power plants, schools, hospitals Megaprojects: public works Paid for with tax revenue from booming economy Construction creates jobs, wages for workers to spend: further stimulates economy

Public Works Megaprojects: : Transcanada Highway (St. Johns Newfoundland to Victoria B.C.) Longest national highway in the world. St Lawrence Seaway: joint U.S.-Canadian Links Great Lakes to Atlantic Ocean: move Canadian products from central Canada (Ontario manufacturing) to world markets Trans-Canada pipeline: Alberta gas to central Canada

American Investment: U.S. economy also booming: high production, lack of raw materials Canada as source of natural resources Canada requires large capital investment to extract resources 1956: 68% of oil industry in Canada is US- owned. 88% by 1967.

Over 50% of all manufacturing in Canada is controlled by U.S. Many of largest factories are branch plants (subsidiaries of American companies). Excluded from tax incentives to protect Canadian industries. Concern: too much? Loss of independence? Issue of debate, ongoing … Free Trade agreement in 1988

Advantages of high U.S. Investment: -Jobs -Access to U.S. technology Disadvantages: -Large portion of profits leaving Canada -Loss of economic control (sovereignty)

Labour Movement Post-war wealth concentrated in upper class Workers want their share, increase in organization and strikes Increase in non-industrial unions: teachers, nurses, postal workers, police Successes: modest increase in wages, growth of middle class 40 hour, 5 day work week, paid vacation Benefit to business: consumer spending up with workers time and wages

Poverty Amid Prosperity: Not all Canadians experience strong economic years Working poor in cities: many immigrants Veterans and war widows get preference for jobs Women: can’t afford to not work. Pressure, guilt of not being at home. Legal discrimination by employers: paid less for same work

Aboriginal Poverty Environmental damage from resource industries Mercury poisoning of fish Disruption of hunting grounds by industrial development and infrastructure 1965: $1600 average wages to $3500 National average Lower life expectancy Suicide rate 11 times the national average Less access to credit, loans, sanitation services

“Money, Power, Greed”

“Red Man Watching White Man Trying to Fix Hole in the Sky”

Exit slip: Write a paragraph on 1)If you think the U.S. has too much economic control and influence on Canada, 2)What positive and/or negative consequences you see that cause you to believe that, and 3)If and how you predict this will change in the future.

What is the cause and significance of the centralization of provincial powers? Is U.S. foreign investment a threat? Is It a necessity? How was post-war economic growth distributed in Canada? What groups got more or less and why?