History 2125F/G Lecture Notes - Lecture 3: Mercantilism, Protestant Work Ethic

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Manufacturers of Labour in 19th Century British North America (1840-1879) roughly Themes: -->New ÒFree TradeÓ idea(l)s -->Impacts of Free Trade/Coping -->Continuing Growth -->A First "Industrial Wave" -->LabourÕs Reaction to Industry * LabourÕs limits Mercantilism- operating in a closed economy New (?) Ideas Take HoldÑFree Trade into the Forefront -Hugo Grotus, 1625: why not Free trade?* Asking whatÕs this closed system? -Treatise of Taxes and Contributions (1662)* Sir William Petty Ðwriting about that there are limitations to the mercantilist
economy -Andres Chydenius* The National Gain -Adam Smith * Great grandfather of free-trade and globalization (capitalism would improve (n
ot society as a whole) : the rich would get richer, not everyone)* Hinting at industrialization * Wealth of Nations -Mercantilism does not guarantee cheap raw materials (so why not look elsewhere
for cheaper raw materials?) -Getting rid of two major ÒtariffsÓ that exist:1. Corn Laws (about grain, usually paid a penalty, now it doesnÕt)2. Navigation Act (ships coming from other colonies, removed) * In England this works, making Britain powerful but here in the colonies it is
not working: usually supplied raw materials to mother country and now mother cou
ntry will get it elsewhere o Elites in Montreal riots, burned down Parliament, what to do? so: -Exit Mercantilism * What to do?o Keep at ito Sell it at home (sell it within CanadaÑyouÕll need infrastructure to do that)o Look South (before we could not)* At first thereÕs anger and hostility, later realize for the best -But growth & activity persist: Toronto, Montreal *busy active places * Montreal Ðtrain * Timber/lumber persist Ðthey realize they can produce square timber efficiently,
even with less tariff protection they remained competitive -->ÓKeep at itÓ* Fish-Easy Coast busy Ð continued and with growth -Growth: because look to various other countryÕs markets (American, etc.) -Crucial Infrastructure in Place:* Mails* Currency * Banking-BritainÕs Industrialization: * kicking off immigrants from islands so immigrants coming to work and giving us
very cheap labour (low reservation price)* French Canadians also have to compete for cheaper labour and lower their rese
rvation price (altogether cheap labour available) New TechnologyÑSteamÑof Crucial importancea. To transportationb. To manufacturing -Mercantilism coming to an end could have been bad but with the continuing grow
th: Plenty of people, new technologies, infrastructure coming into place -Government a Big Help* Reciprocity Treaty of 1854o Free trade treatyÑfree trade in ONLY natural products (raw materials)o Good for us because Canadians can ship south but we donÕt want raw material so t
his treaty helps us more than the Americans o After 10 years, Americans cancelled it: they realized relatively little benefi
t for themselves * Non-Reciprocity items: very little, so we gain a lot in exports* We are getting in on American trade * Reciprocity: Short-lived -Road Travel has its limits * Dorchester ÐFirst Locomotive in BNA* Steam ships (steam engines), trains * 1st Rwy: Champlain & St. Lawrence (first train in Canada)* Train allows: Forward looking Entrepreneurs or?o This technology, what to do with it? GovÕt is ready to help, people are aware of
the beneficial use, two acts: 1. Guarantee Act * (GovÕt said if you build a railway and so long as you build at least 80 miles, y
ou were guaranteed to pay no more than 6% of interest of the loans) ÐGovÕt debt up t
o $15 million from this 2. Municipal Loan Fund Act* Communities (not just businesses) wanted railways * Towns willing to pay in offering railways so they end up going broke * All the towns added together (Municipal) pool their money together and the Col
onial GovÕt looks after it * Railways use up all the money and Colonial GovÕt in debt $30-40 million dollars * Total expenditures by GovÕt on railways Ð a lot -Samuel Zimmerman: * Worked on Lake Erie canal (therefore called himself an Engineer, and in those
days thatÕs how professions were done)* Nowadays we have unions for professions * He has no money, marries a merchants daughter (money from father-in-law)* Calls himself an engineer and finds railways that have been chartered by the G
ovÕt and havenÕt been constructed o ÐHe promises to build the railway and he makes money by taking as long as he can
to build the railway Ðbad railways, cracking, etc. o Entrepreneur taking advantage of the railway boom o By 1860 heÕs a millionaire GTR Works Hamilton 1953 Great Western Yards HamiltonRailways Among 1st Big Firms:* Made millions of dollars on railways and back then $200 annual salaries* Thousands of labour workers (among the big 6)* Trains = New Issues o ie. TIME Ðthere were no schedules so you donÕt know when they depart or arrive (mi
nutes did not matter)o ie. Faster Communications Ðtelegraphs make sure they donÕt collide* Faster Communication: Telegraphy * Through wires and dot, this communication=strong impact, effects everything -Trains One Factor in Shift Toward ÒFirst Industrial WaveÓ * Factories sector growing ÐCanada was self-sufficient in manufacturing products (
unlike now) -We were making stuff not just taking it -Paternalism Challenged:* Redefining Labour/Capital Relations o Paternalism is what we now call the Human Resources model (employer and employ
ee relations)* Employers donÕt want to have to look after the employees* Employees never felt like they were looked after * Paternalistic model-arguably a fiction to justify why the owners got to have a
ll the say and none for employees -Thinking About Work/Labour: What is it that characterizes a worker?* Ex. Shareholder companies, CEOs, etc. they are ÒjustÓ investors not workers * ÒWorking hardÓ in Western society is different; ancient times: slaves worked; Bibl
e says working hard is a punishment for sins * Until the Industrialization of Europe (Protestant Work Ethic) Ðthat is when Òworki
ng hardÓ became a good thing -Employers: from Paternalism to INDUSTRIAL view* use mechanical not people skills* turn to inanimate power* develop new ways of processing raw materials -EmployersÕ move from Paternalism --> INDUSTRIAL setting * More employers working for you (used to be 4 now 300), used to have a human re
lationship where they knew each other (better employer-employee relationship) no
w just boss and worker relationship1. ÒDeskillingÓ Ðbroke down all the steps into Òmaking a shoeÓ and each person does one sh
op (one cuts, one laces, etc.) Ðnot assembly line yet but closer to (BECOMING MECH
NIZED)* Cheaper for consumers, worse for employees* Shoemakers were losing their jobs to deskilling * ItÕs the skilled workers (the skill status, and income) he has is being blown aw
ay by industrialization * Ex. Typesetters Ðthose unions were fine for a while though Ðharder to deskill that
* But, carpenters, ship makers, etc. their status at risk with industrialization* ex. rolling mills, boot and shoe manufacturers, tobacco factories -->these des
killed, but those that own these factories entrepreneurs get wealthy:* That is industrialization: small numbers get wealthier and the larger mass get
worse off b. ÒDepersonalizationÓ* Crucial developments: not thinking of each other as people just boss-workers -->Reacting to these changes -->workers looked to a variety of increasingly sop
histicated * ÒLabour OptionsÓ -Early Labour Evolution* Unplanned Unrest (Employers saying they canÕt or wonÕt pay this week, etc.)* Confraternities/Fraternal Groups* Independent Labour Unions c. 1812 + -Challenges for Labour* Labour sides with Businesso Combination Act (you cannot publically complain about your employer)o Master & Servant Act (powerful, employer could tell you what to do in any/ever
y aspect of your life)o Peace near Public Works Acts -Adam Smith Wealth of Nations* He approves of employers controlling as such -Internal Divisions (everywhere there is conflict within and discrimination)* Ethno-religious differences* Class divides * Gender divides (if you go on strike, weÕll hire women) -Practicalities (you donÕt work all year round, seasonally, so you are broke half
the time) -ÒSkilledÓ workers most active* Harder to replace* higher incomes--better able to stop work * solidarity in protecting "skilled" o Strongest unions are the various brotherhood of the railways because they are
a skill that others have not learned Discussion: -How much is there? How much of the basic requirements were in place?* Banking system in place * Railway, canals, infrastructure* Communication, telegraphs -How well have they done?* They have the basics for a sustainable economy * Free trade has opened up more options * Reciprocity Treaty Ðbetween America and Canada
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