History 2125F/G Lecture Notes - Lecture 8: Ivan Rand, Keynesian Economics, Licht

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9 Feb 2013
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-->Missed beginning (Starting slide 20) WAR BRINGS CHANGE & CONTINUITY -GovÕt says businesses would get ÒrebatedÓ for taxes during the war* But not individuals and taxes* Ô43 to Ô45 had to pay forced savings (these earned interest but it was forced not
like victory bonds) * Victory bonds were highly advertised telling people to buy bonds and that woul
d lead to us winning the war Business joins in the war effort (while selling product) in their advertisement
s * They say to buy the bonds because it will give you savings Link wartime and peacetime production For now help fight but keep buyers dreams alive * Slide 30 Ð advertising is towards Òkeeping fighting and buy this stuffÓ* Keep your war savings piling up* YouÕre going to want to spend after the war * Income rises, Savings rise, FamilyÕs income rise (because of all the wives worki
ng)* Government spends so much so that annual deficit is bigger than the economy o No one is worried (debt is only a crisis if you choose to make it one)o Debt is large, biggest it has been in Canada War saw the Government look for loyal Image on slide 36:* Hands: one is a businessman, one is a workero Government believes the two must work together to produce and improve economy
(smoke from factories)GovÕt says production is how we will win the war * ÒLabour and Management are pooling their strength to give us the means of victor
y in warÉand progress in peaceÓ* How to get workers to say I buy into productivity * This is the beginning of modern labour relations in Canadao GovÕt says we have to have some way of producing in Canada Slide 40: Rationing of products, frugality * Limit sugar and coffee (has to be shipped from overseas so ration it because o
f the extra cost associated) Woman could contribute in many ways, knitting socks for fighters WAR and Labour Relations: Keep Production* To win the war you have to be loyal * Work hard because the soldiers, sailors, etc. rely on you to make it well * Everyone can contribute (Slide 46) so work hard no matter what you do not just
those fighting * Largely volunteer force * Workers remember (from 1939) that people were not doing well o 11 million people and only 300,000 taxpayers (well over 90% of households were
making less than $1,000 single or $2,000 married) -->Only 2.7% make enough to p
ayo War adds some but still hardly well off* Life at home was still tough, wages gone up a little and a little more full-ti
me work but still challenging * There was some improvement ($1,600 a year roughly made by worker) but still o Union members: increase in membership (almost doubles during war)* People want to make sure things donÕt go bad again * ThereÕs a labour shortage so workers realize that they arenÕt likely to get fired* Want to ensure after the war that things donÕt go bad again* If youÕre producing something the GovÕt doesnÕt care about ex. Gold (not used in war
) then there would be a strike in that industry * To keep things settled * Labour Law ArisesÑGovÕt gradually steps in preventing strikes and lockouts --and
encourages businesses to recognize unions * GovÕt slowly adds regulations, creeping along, adding little by little * Feb. 1944 Cabinet meets and issues Privy council orders P.C. 1003 (the order n
ame) Ðthis is modern labour law in Canada Ðhas the impact of a law not a law * Gov't want a mechanism to prevent strikes, they want continuous production * Legal recognition of the right of unions to exist in the workforce * Job of the union to make sure that workers never stop working just because the
y are angry about something (union leadershipÕs job) Ðgrievance being emphasized* Company has the right on everything that isnÕt in the contract (as a union leade
r you want everything you can imagine to be in the contract)* Really benefits business than labour (?)Ford Workers at Windsor Lead on Automatic Checkoff * Automatic Checkoff Ðwhen you get your pay * Ivan Rand: It is against human rights to force someone to be a member of a uni
on, but you must pay dues because the union means better working conditions (Ran
d Formula) is how it is calculated ÐFinancial version of modern labour relations i
n Canada (this and the P.C. 1003) War and WomenÕs Work * Also involved in military* Filling in for jobs while men were away (railway job, Bren guns, etc.)* Maintaining automotive work, fish work, etc.* They didn't work in underground mines (superstitions about women underground)* Practical issues of women at work (washrooms for women)* After the war when men came back, unions are supposed to protect them, so they
allowed women to be fired on the basis of being women * Wages do go up during war (gains to family income) Economics Continentalism Triumphant* During war, American comic books were cut off Ðwe had to deal with Canadian comi
cs (because of the only spend what you need to and save concept during the war)* Permanent Joint on Defense -->1940* Hyde Park Agreement -->1941o American agrees to buy and invest more in Canada because Canada needed the mon
ey (US will get control of our economy)o Trade with US picks up during war Looking Past the War* End of the war we sell off war related supplies inexpensively (supplies, facto
ries, aircraft)* Free Trade?o We had agreed to free trade but that did not go through, but we agreed on the
international monetary fund (IMF) and general agreement on tariffs and trade (GA
TT) Ðgoes on for longer though * Changing from protectionism into new way * Who Should Lead the Economy? (1944)o Public sector should run the economy (that is the view at the time) ÐGovernment
should run belief o Keynes believed he should be in charge-no real doubts for 3 decades * Keynes says economy goes up and down in boom and bust * He says we should fight the cycle go contracyclical concept* Ex. in good times, tax it out of the system, and in bad times, shoot that into
the economy* DonÕt do this by giving it to a company, give it to the poor people, so that way
the money will get into the economy, multiplier effect * Applying Keynesian during wartime* Unemployment insurance (1940)* Report on Social Security ÐLeonard Marsh ÐheÕs copying what someone in Britain said * Family Allowance (for mother's with children) * VeteransÕ Charter * Baby bonus Ðas a first universal social program (all mothers get it) The Government of the Bank of Canada, praises Keynesianism:* he believes this is how we wills top mass unemployment This interventionist perspective on the postwar era would lead Canada toward bi
gger business, govÕt and to some extent labour Which crisis is more influential on labour and business, the Great Depression o
r World War II (and why)? Without the Depression you would not get rid of the laissez-faire way of thinki
ng. The Great Depression allowed individuals to better appreciate the improvemen
ts during World War II. The lack of Government intervention during the Great Dep
ression helped lead to the greater involvement from Government during World War
II. The laissez-faire attitude was not working and the economy as well as societ
y was suffering due to the lack of Government involvement. However, the years to
come were moving toward Keynesianism, where workers confront the economic crisi
s and womenÕs work gets challenged and shows a new role for women in the workforce
. It is during World War II when Government takes a better initiative on improvin
g production and improving employment because of the need for labour. Also, wome
n being able to participate in the labour force. Overall income and savings had
increased for the individual and the family because wages were increasing and al
so full-time work was more available. Also, labour laws and unions improved during the war PC 1003: Government wants
a mechanism to prevent strikes, they want continuous production. Legal recogniti
on of the right of unions to exist in the workforce and the job of the union is
to make sure that workers never stop working just because they are angry about s
omething (union leadershipÕs job). However, the company has the right on everythin
g that isnÕt in the contract (as a union leader you want everything you can imagin
e to be in the contract). Likewise, the Rand Formula, introduced by Ivan Rand, calculated how much worker
s had to pay to their unions; this formula is still used today. This shows the g
reat impact of World War II and how they impact modern labour laws to this day. All in all, both the Great Depression and World War II were influential on labo
ur and business but World War II brought improvement to both these areas that ar
e monumental to history and the modern economy.
12-10-25 2:53 PM12-10-25 2:53 PM12-10-25 2:53 PM
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