LECTURE ELEVEN/March 25
Economy running double the capacity of before the war, GNP double than before. Huge
government to help this war effort, changing relations in the US. Another aspect that made
Canadians aware of the world was the training and socializing in England during the war. Drinking
in England was popular, men came back with new sense of how to sit in a bar & drink beer. A lot of
migration for work,
• Reconstruction: basically the process of returning Canada from before the war. Suggests it
didn’t happen on its own, it was a conscious action by the Canadian government to make
this happen, first task was to bring the service personnel from overseas. Government was
very permitted to provide benefits to the service people, even the women (never got the
same benefits). Well known that the process of demobilization after ww1, was a disaster.
10,000+ unhappy ex-military personnel. You got compensation if you were injured, if you
were in good health you got nothing. You were paid during it but no compensation when
you returned, whose to say mental injury was less than physical. Lots of issues in 1919, set
about changing it after ww2, gave generous compensation for all those that served in the
war. this began in the late years, 1943 when they created the department of veteran affairs.
1944: past lots of social programs referred to..(see below)
– veterans’ charter: gave cash benefits based on the number of years you had served, if
you served over a few years you got 500, that was significant. Gave you low cost
loans to start up business, farms, health insurance for period of time, if you did have
later health problems you were covered. No one else had health insurance during this
time, major benefit to those that served. It also gave free university tuition for the
number of years you had served, this was a huge social benefit. It might not seem
that big now, but back than not a lot of people went, only for educated elite. Most
didn’t have the money to afford it, didn’t think of it as an option. At the end of the
war, everyone was positive world was on the verge of improving (reconstructive
mindset). Thousands more people were going to get degrees. No one in their family
would have gone till university until then, large social impact for free university
tradition. It took a big step into changing university into a mass institution;
enrollment never went down from end of ww2.
• Economic Growth
Basically the government withdrew from managing everything, sold off most of the crown
corporations and industrial plants. The government had accounted for 40% of the national economy
in 1944, in 1946 it had declined to 16%. Major privatization, but the government did not back out of
everything. In the business of providing housing it created the “war time housing” to build housing
for soldiers, but after the war it decided to stay in the housing business. It helped to facilitate the
housing for Canadians for mortgages etc. large government companies that did this, also decided to
stay in grain marketing, all free market commodities were controlled by the government during the
war & the government decided to stay in control.to set prices etc. some people thought this was a
mistake, the point it came out of the war time, good example today sort of living in the legacy,
supply management institutions created during the war. They kept their hand in taxation, provinces were able to tax but the federal government took that away, and during ww2 used the taxation to
fund the war effort, provinces assumed they would get this back when the war ended, but the federal
government liked this effort of controlling the money. They proposed they would keep it and
distribute to the provinces through population and economy etc. two largest provinces: Ontario &
Quebec strongly opposed this, 1945 both refused this, 1947 agreed that federal government would
be the only taxing government. What this did is it gave Ottawa, the power to redistribute the money,
equalization grants: all money comes in and decide the better off provinces don’t get as much back
and poorer get back (redistribution built in) why NS can afford to pay its teachers & nurses the same
as in other provinces. Built in our federal system, province of Quebec has been a beneficiary for a
while. Comes @ the end of the war. Although government did withdrawal a lot after war, but big
Late 40s -70s steady economic growth: began with a successful transition from post war, major
recession after ww1, unemployment very high. No post war recession in ww2, government managed
it very carefully, they deregulated things gradually, but also domestic demand, people had good jobs
in cities throughout the war, and money saved sense of security felt the world would approve.
People started buying, government facilitated the change, manufacturing guns to washing machines.
Electronic factories that converted from making radars to televisions. International demand for
North America products, industrial production and agriculture was destroyed in Europe.
Enthusiasm for domesticity, advertising was very good at making people want to be domestic. A lot
of domestic advertisement. Demand being created. Entire generation where people couldn’t have
families, depression than war, but this ended so people wanted to buy nice homes.
1945-1973 only one year where the economy did not grow (1954). Annual growth rates of 6% +.
GNP per capita doubled, making them twice as wealthy. Nothing was damaged in Canada.
New resources: Iron= late 1949, a whole new project was open in Quebec the “Iron Ore” company
opened up a huge mine in Quebec brought down the ore down to a port in the St. Lawrence, carried
Alberta oil & gas: 1947, huge oil formation 20km south of Edmonton.
New pulp mills, new illumine factories, they built a hydro facility that would fall off the cliff and
would be the source for their illumine factory. Resources opened up in the north for more
employment. Resources led to two infrastructure projects: St. Lawrence Sea Way built in 1950s,
proposed in 1951, the idea was you would make a ship channel through the St. Lawrence from
Quebec to Thunder Bay, you could sail a ship all the way to thunder bay, that meant much larger
channels. Deep enough & long enough to hold a ship. Great investment, one of the reasons they
built it was to get the ships to carry iron from lower st. Lawrence to Chicago to unload their ore and
make steel. (connection of America and Canada). The second “trans Canada pipe line” from Alberta
to central Canada, not to Quebec, allowed oil & gas to be transported from oil fields to central
Canada. This was a private project but was invested by federal government. By no means was the
natural resources boom the only one, the manufacturing was booming, all of etiboke was built in the
1950s. • Population Growth: Connection between economic & growth of population, Canada
population 1946 1971- 12 mil to 18 million, two important components.
– baby boom: 1946 the overall trend changed, birth rate went up. Variation from the
downward trend, birth rate created a large number of babies born in that years, larger
than average born in that period, as they aged, they were “pig and python” pig pokes
threw the python, what happened it was the largest group, normal demographic
event. The children who were part of this, as they proceeded generation saw almost
no negativity, as they aged nothing but good experiences. State built them schools,
large construction of universities when they went to university. So much was done to
serve the cohort, on top of this, there was lots of jobs being created. They had job
opportunities, economy was expanding, the service white collar job expanded. 25
years old got good paid jobs, generation of young people who had an easy life. This
is what defines the baby boom generation more culturally, life of entitlement