February 7 2014
Canada Inc.: the rise of the modern corporation and the second Industrial revolution
An Evolving Economy
CND lives were drastically changed by the acceleration the second indur5tial revolution in CND.
The second industrial revolution (hereafter 2 IR) was based on the new technologies such as:
the internal combustion engine, the development of resources, electrical power and new
chemical processes. This started the continuous move away from primary industries to
secondary industries and increased growth in the tertiary sector (service industries)
The 2 IR
Technological innovations increased product output without expanding the labour force.
Electricity also had a large factor in this and will be further discussed in a later class. A new
emphasis was placed on ‘consumer-durable’ goods, and there was a construction boom, as well
as the rise of suburban growth. Expanded credit, banking and insurance opportunities allows
allowed companies to grow.
A good example of how the economic sectors evolved is the AUTOMOBILE.
• Ontario had a corner on most of the market in manufacturing.
• The war had proved the usefulness of the automobile.
• Cars could deliver goods directly to a store, without the hassle of using trains.
• Every city then needed, car dealerships, gas stations, repair shops, auto insurance
brokers, tire shops, etc.
• Demand for better roads led to construction of hard surfaced highways.
• Restaurants and cabins along busy routes.
• To0urism boomed – increased number of jobs.
• The increase in HP meant more accidents, and death, and a larger police force.
Secondary industries also boom car appliances, furniture, radios, retail stores all of which
contributed to the rise of a consumer society. The rise of the department store also contributed
to this (ex: Eaton’s) and represented 20% of the CND retail market. It also promoted mass taste
New Technologies New technologies allowed for the increase in productivity and volume of goods, old machines
made new machines, and mechanization lead to mass production.
Taylorism: Scientific management, also called Taylorism, was a theory of management that
analyzed and synthesized workflows. Its main objective was improving economic efficiency,
especially labor productivity. It was one of the earliest attempts to apply science to the
engineering of processes and to management. (http://en.wikipedia.org/wiki/Taylorism)
1.The standardization of the product (nothing hand-made: everything is made through
machines, molds and not by skilled craftsmanship)
2.The use of special-purpose tools and/or equipment designed to make assembly lines