1. Learning Outcome: Analyze the relationship between the National Policy and the industrialization of Canada

2. Political Cartoon-The National Policy

3. So what do you need to know? ► How the National Policy helped change our country ► How it helped move our country from a less developed to a more developed nation ► How it helped grow our nation’s economy ► How it promoted industry (mass production of goods, trade, infrastructure, etc.)

4. Background … ► Pacific Scandal: in 1871, political corruption in the awarding of contracts to build the transcontinental railway. ► Depression: between 1874 and 1878 Canadian economy suffers from the effects of a worldwide depression with high unemployment, widespread business failure, and loss of confidence in financial institutions.

5. Need for a National Policy ► With British Columbia being lured by the Americans to join their union, and the Red River Colony in the West trading exclusively with the Americans, and the Transcontinental railway not completed by the Liberal government, MacDonald needed to step in with a bold maneuver.

6. Three Initiatives ► The National Policy consisted of three initiatives: ► Protective tariffs against foreign goods ► Completion of a Transcontinental railway ► Greater immigration and settlement of the West

7. Results ► Duties of over 40% levied on products coming into the country (imported goods) ► Secondary manufacturing industries developed in the new Canadian Heartland of Ontario and Quebec ► Protective tariffs: taxes imposed on imported products to encourage people to buy domestic products ► These tariffs allowed struggling Canadian businesses to get back on their feet ► The east and west would now provide a supply base for a strong central manufacturing base in central Canada.

8. Pros and Cons ► The new supply base of the east and west allowed the central Canadian firms to grow stronger, with money and people moving in to build up the growing markets. ► This had the conversely negative effect of making the east and west suffer an economic decline, the well being of these areas taking a back seat to the development of central Canada. ► Industrialization took hold of Central Canada creating harsh working environments, exploitation of women and children by industries, sweatshops, piecework, and lack of a social safety net.

9. Definitions ► Sweatshops: places in which people labor for long hours under harsh working conditions, for little wages. ► Social safety net: government programs and services that provide aid for citizens in need. ► Piecework: work that is paid on the basis of the amount done, not on the time it takes

10. Social response to Industrialization  Canada underwent a great transformation during the industrial revolution  The standard of living decreased for many in order for the new manufacturing industries to thrive  In the cities many working class people lived in slums, sometimes sharing houses with other families  There was a lack of running water, sewers, and electricity. These people were also malnourished and babies suffered from high infant mortality rates.

11. Social response to Industrialization ► The middle class responded to symptoms of the new age such as poverty, alcoholism, and child abuse ► The Progressive movement took initiatives to help the poor, other groups targeted the problems of prostitution, gambling, and the consumption of alcohol ► Others helped to improve public health system such as new hospitals and clinics ► New sewer and water treatment plants were built ► Subsidized housing helped replace crowded houses and eliminate slums

12. Workers response ► There were two ways for workers in this day and age to stand up to the industrial factory owners: ► Strikes and collective demands for shorter working hours, and more pay ► Others would organize new labor associations and unions, such as the Knights of Labor which expanded into Canada in the 1880’s ► These responses from the middle class and the workers would lead to Canadian citizens strong sense of social responsibility

13. Review Cause and Effects ► Threat of American annexation of the West ► Too much reliance on American business (competition) ► Desire for workers rights ► American aggressiveness ► Railway construction ► Lack of social safety net ► Poor working and living conditions ► Building of the CPR and exploitation of Chinese workers ► Industrialization of Nova Scotia ► A central Canadian heartland and western and eastern hinterland ► Creation of labor unions ► Canadian sovereignty over the west ► Introduction of protective tariffs ► Pacific Scandal (exposure of political corruption)