Canadian Economy Post Canadian Economy Post WW1 WW1

1920s1920s

Improving EconomyImproving Economy Beginning of 1920s Beginning of 1920s –– Depression Depression

(Effects of WW1 Debt)(Effects of WW1 Debt)

Mid 1920s Mid 1920s –– Recovery Recovery Wheat was important exportWheat was important export Huge growth in Huge growth in Natural Resources Natural Resources

exploitationexploitation Paper/Pulp Mills, Paper/Pulp Mills, mining, forestry, mining, forestry, hydro stationshydro stations

Trading ImprovesTrading Improves

Pre-WW1 Pre-WW1 –– Traded mainly with BritainTraded mainly with Britain

Post WW1 Post WW1 –– Britain = In debtBritain = In debt USA = New World Economic LeaderUSA = New World Economic Leader USA investment in Canada INCREASEDUSA investment in Canada INCREASED Trade with USA INCREASED (eg. 75% of Trade with USA INCREASED (eg. 75% of

newsprint produced exported to USA)newsprint produced exported to USA)

USA & Canada RelationsUSA & Canada Relations Instead of lend money to Canada (like Instead of lend money to Canada (like

Britain did)Britain did)……USA investors setup USA investors setup Branch PlantsBranch Plants in Canada in Canada Branch Plant Branch Plant –– Businesses owned & Businesses owned &

Controlled by USA companies, but Controlled by USA companies, but operated in Canada (and provided jobs for operated in Canada (and provided jobs for Canadians)Canadians)

Benefit for USABenefit for USA……they did not have to pay they did not have to pay taxes to taxes to ““ImportImport”” products products……because these because these products were produced in Canada! (eg. Car products were produced in Canada! (eg. Car companies companies –– General Motors, Ford, Chrysler General Motors, Ford, Chrysler replaced all Canadian Car makersreplaced all Canadian Car makers……and did and did not pay tax in Canada)not pay tax in Canada)

USA / Canada cont’dUSA / Canada cont’d Canadians happy Canadians happy with USA with USA

investmentsinvestments…… Long term consequencesLong term consequences…”…”ahh who caresahh who cares”…”…

nobody thought of thisnobody thought of this

Canada economy based on Canada economy based on Primary Primary Industries Industries (harvest raw materials(harvest raw materials……logging, mining, etc)logging, mining, etc) Raw materialsRaw materials

USA used Raw Materials to make new USA used Raw Materials to make new products (products (Secondary IndustriesSecondary Industries))

Primary & SecondaryPrimary & Secondary

Primary Industry Primary Industry –– extract Raw extract Raw materials (eg. Mining of lead, zinc, materials (eg. Mining of lead, zinc, copper, metals)\copper, metals)\

Secondary Industry Secondary Industry –– use raw materials use raw materials & make new products (eg. Use metals & make new products (eg. Use metals from mining to make cars)from mining to make cars)

Which is more profitable ? Which is more profitable ? Why?Why?

One Manufactured Product One Manufactured Product

Canada exported 1 manufactured Canada exported 1 manufactured (processed) product to USA Post WW1(processed) product to USA Post WW1 ILLEGAL ALCOHOL (Bootlegging to USA)ILLEGAL ALCOHOL (Bootlegging to USA)

(Prohibition = NO ALCOHOL SOLD)(Prohibition = NO ALCOHOL SOLD) Prohibition took place in both Canada Prohibition took place in both Canada

& USA during WW1 & USA during WW1 Canada Prohibition ended in 1920Canada Prohibition ended in 1920 USA Prohibition ended in 1933USA Prohibition ended in 1933

Urbanization of CanadaUrbanization of Canada

Growing economy & manufacturing Growing economy & manufacturing sector in Canada => more people sector in Canada => more people move to city for jobsmove to city for jobs

ALSOALSO……farming & technology = less farming & technology = less labour workers for farming (because labour workers for farming (because of machinery)of machinery)……less people needed in less people needed in rural farm arearural farm area

Modern Canadian cities formed this Modern Canadian cities formed this time (Vancouver, Toronto, Ottawa, time (Vancouver, Toronto, Ottawa, Montreal)Montreal)

Problems that occurred..Problems that occurred..

Slums (homeless/poor people Slums (homeless/poor people concentrated)concentrated)

Pollution (from factories)Pollution (from factories)