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HIST 279
Robert Dennis

HIth 279 20 Century Canada Professor Robert Dennis [email protected] Wed Jan 9/13  For Friday, read Ian McKay, “The Liberal Order Framework: a Prospectus for Reconnaissance of Canadian History,” Canadian Historical Review (December 2000): 617-645.  ABE books – search engine of used bookstores, reduced-rate books Fri Jan 11/13 Canada as Liberal Order: A Portrait to 1896  Consider Canada as an idea, an intellectual process o Defending and expanding liberal order in North America  Conceptualizing Canada o Canada is a process constantly being reinvented  Present-day conception of the place is a relatively new one o Canada is a process  Ever-evolving project undertaken for specific purposes  Those of constructing and defending a liberal order in northern North America o Canada has had very different meanings through history  Continually challenged, contested, refined o 21 century definition  Canada as democratic, a sovereign country, having a social safety net, and legally guaranteed rights and freedoms o 19 century definition  Not democratic, definitions of gender, race, class, not sovereign but a colony  Canadian as citizen not relevant until 1946 with Citizenship Act  No income tax, no labour laws, no health care  Liberal Order Framework o Introduction  Act of Union, Upper and Lower Canada became Canada East and Canada West, unite with other provinces to form the Dominion of Canada  British North American Act gave Canada some power, but Britain still held most  1900, many did not vote  Dominion made of areas that had not joined the United States  19 century, liberal does not mean democratic  1830s, 1870s, 1880s, armed rebellions  By 1900, Canada was a Dominion that was economically and politically liberal  Individual freedoms had been guaranteed  Most economic decisions were consigned to the market  Transformation of 19 century liberal inheritance where the state takes on more responsibility for social and economic life o Values  Liberty, equality, property  Property most important, preconditioned for liberty  Formal equality always subordinate to possessive individualism, property o Least important  Liberal leadership tries to extend liberal assumptions about society  Liberals give primacy to the category of the individual o Until the 1940s, the possessive individual  “The possessive individual”  White, property-owners, usually male  Sees the individual as more real, fundamental, than institutions and structures  Higher moral value to individual than society or collective group o Individual comes before society  Individuals require resources, so competition ensues o Society is composed of individuals, so its function is to serve individuals  Should respect their autonomy  Do not trespass on individual right to do as they please, as long as they do not cause harm  19 century liberals saw democracy as terrible o Mob rule, rights of the individual trampled underfoot  Capitalism  Mid-19 century, significant force  1879, National Policy, high tariff barriers to protect industries o Capitalist priorities at the centre of the liberal vision  1900s, industrial capitalism everywhere, but still relatively new o Moved from 1880s, competitive communities, to corporations  Gap between rich and poor at turn of the century was huge and growing  Still a relatively new idea, many Canadians felt they were encountering something very new o Tried to change or overthrow the system o Competitors and Challengers  Different visions of liberal order  Working model based on Great Britain o World’s preeminent modern nation in a favourable position  Worldview of a few men and how they attained hegemony o Political and social common sense  Liberal discourse, common language developed  Sharply restrained government, possessive individualism in 1900  Statute of Westminster o 1931, Canada gained right to make decisions over own foreign policy  Blend of old cultures and new cultures o Older societies presented challenges to liberal order  Young country in Quebec had to deal with old country of France, with anti-liberal, feudal traditions  Lands appropriated for new order  Workers began to act in non-liberal ways o Wanted security, unions  Alternate visions to liberal order o Visions of Canada  One Canada  Dominion of Canada was a great liberal dominion held in trusteeship for Britain  Widely-dispersed peoples living far apart  Dominion in 1900 asserted sovereign control over lands most Canadians had never seen o Highly-fragmented construct  Divided on language (English/French), religion (Protestant/Roman Catholic), politics (Tory/Grit)  Difficult to find uniting image of Canada  Canada as islands surrounded by oceans, arctic, US  Population began to emigrate o North to Canadian shield o South to the US  Most went south o 1890s, losing more through emigration than gaining through immigration  Settlement was patchy until west opened  In US, west was a lure  In Canada, not such  Two Canada(s)  Pact between English and French  Safeguards terms of initial pact (1867) between French and English  Bilingual, bicultural  Quebec should be independent, seen by some  Many Canada(s)  Many diverse regions and interests  No process of Canada seen as natural  Separatists in Nova Scotia, Quebec, native nations, etc. Wed Jan 16/13 Immigration and the Laurier Years  The Laurier Government o Insiders – buying into liberal project, advancing one view of liberalism or another  Try to contest the terms of debate o Outsiders – do not buy into the liberal project  Come from a different tradition (e.g. collectivism) o Canada as British vs. as a pact between French Canada and a British idea vs. Canada as something else o Many saw the basis of unity in Canada’s connections to Britain  Flag, anthem were British  Most important colony of the most important country  Canada as trustees of the British race  Canada as the brightest gem in the British empire o 2 Canada(s)  Result of a pact in 1867 between English and French  Created 2 nationalities  Need biculturalism, bilingualism o Argued for separate Catholic schools  French Canadians as truest Canadians o Loyalty to the land, not to Britain  English Canadians tried to destroy French culture outside Quebec  Would destroy British-ness  French Canadians tried to survive o Provincial jurisdiction over French culture  Set up Quebec and looked to other French-speaking communities o 1896 was turning point in history of polarization  English, imperialist movement urged sending soldiers to fight in the British Bore War in Africa  French thought Canada should be more independent  Conflict over the survival of separate schools in Manitoba  Liberal party transformed from anti- French and anti-Catholic  Led by Laurier, first French-Canadian to be prime minister o Toleration of minorities, maintenance of federalism o Always sought compromise  Sounded like an imperialist, but also to Canada o Practical steps  Committed some troops to Bore War, but never enough to please imperialists o Compromises in foreign policy, separate school questions o Because of him, Liberals replaced Conservatives as main political party o Coming to power in 1896 coincided with economic boom, change in Canadian capitalism and emergence of capitalism on a larger scale that relied on a wheat economy o Arrival of 1000s of Canadian immigrants  Before this point, population was declining  1880-1891, more than 1 million (1/5 pop) went to the US seeking opportunity  Canada was a good place to leave  Changed balance between French and English  Used to be 1:2  Now millions of Canadians who were neither French nor English arrived  Why Immigrants Came o Pull Factors  Change in approach by Federal Government towards immigration  Minister of the Interior, Clifford Sifton o Effective administrator, led nation’s search for new citizens  Large budget, needed new employees, promoted Canada o Immigration to the US declined greatly o Believed in the hard sell  Immigration had to be taken on as the sale of a commodity  Advertisements, missionary work o Bring in Americans, British, Irish o Asked people to write impressions of Canada o Used some unsavory methods  Immigration advertisements outlawed in Europe  Secret bonusing system  Recruiters in Europe would receive money for every adult they sent to Canada o Needed massive immigration to develop the west o Wanted to attract peasants who could survive on the land  Wanted people from places similar to Canada  Change in international situation  Combination of circumstances in 1890s o Rise in wheat prices o Fallen transport costs o End of available free land in the US  Transformation of prairie agriculture  Made agricultural settlement more attractive  New type of wheat created that was easier to grow in the west o Production grew rapidly, created more jobs  Jobs  Industrial and economic expansion  Agricultural boom created booms in other fields  After 1870, active participation in trans-Atlantic labour market  900,000 non-agricultural workers arrived in Canada between 1907-1930  Many Chinese brought to build railroads o Push factors  Implications of the Industrial Revolution  Land scarcity and over population  2 main waves o 1820-1890 from northern Europe o 1890-1930 from Eastern Europe  Religious persecution  Active and open repression of languages and religions  Response to Immigration o Argument for immigration  Will speed the development of Canada  Only a wave of immigration will settle the west quickly  Suddenly, by 1914, almost half of prairie residents were born in another country  1900-1930, prairie population increased 6x  People of British origin had declined, other Europeans increased  Many culturally and linguistically distinct areas o Began to worry about vast number of immigrants in a short time  Working class – immigrants used as cheap labour by predatory employers  Ethnic balance – French Canadians worried about flood of immigrants  Few were French-speaking  Seen as an attempt to root out French culture and language o Deep Canadian roots of prejudice and exclusion  Native and white relations often involved stereotyping of Natives as soulless barbarians and savages  Tried to wipe out culture through forcible Christian conversion  Blacks received separate schools, discrimination  Justified using argument of progress  White superiority taken for granted and bolstered by pseudo-scientific ideas of race  Uninhibited racism around 1900  Frequently took the form of compiling wish-list immigrants o British, American white, Scandinavians  Created list of undesirables o Asians, Blacks, various religious groups  Towards certain immigrants, Canadians could be hostile  The Immigrant Experience o Some were parts of organized groups and settled in cultural areas o Immigrants would follow the example of a relative  Kept chain of immigration going o Gravitated together in response to Canadian traditions and needed a sense of kinship o Case studies: Chinese and Ukrainian Immigrants  Ukrainian  Most controversial European immigrants o Clashed with British-Canadian sensibilities  Few goods, little money, unpronounceable names  Often illiterate peasants  Did not dress like Anglos, lived in different homes  By 1914, block settlement of Ukrainians through the prairies  Seen as ignorant scum, barely human, Canadians complained about them in newspapers  Chinese  Started arriving during the gold rush, 1858  Labourers had worked under appalling conditions on the railways o Low wages, high level of transience and strong work discipline  Immigration policy reflected Canadian racism o Obligated to pay a head tax (entry fee)  By 1900, Liberal government raised head tax to $100 to limit immigration o BC wanted $500, angered by this, so royal commission appointed  Concluded that Asians were unfit for full citizenship, dangerous to the state  Head tax increased to $500  Many brought by contractors with high head tax o Most were men who went to live alone, sending money home  Intended to return as soon as possible  1901, 10% of BC population was Asian  Gravitated to urban areas  Chinese not allowed to buy property outside Chinatown o Preserved traditions in Chinatown, developed own traditions  1890s, conference, decried the moral depravity of the Chinese o Moral opposition to these depictions came from the idea that low wages would hurt economic interests  Not permitted to immigrate unless came directly o Eliminated many who had to stop in Hawaii on the way o Immigrant experience as one of pain, conflict, exclusion Fri Jan 18/13 Triumphant Liberalism in the Hinterlands: The Opening and Development of the West  Importance of possessive individual o Right of the male individual to property and freedom, so long as he does not harm others o Strengths  Inner certainty of the truth, substantiated by British example o Weaknesses  Those from native or French societies was society as community-focuses  Non-Liberal, collectivist responses to liberal problems  The west o Tells us what kind of society liberals admired and sought to build  Free-hold land tenure, individualistic farming, society carefully measured out plots of land and provincial boundaries  Planned, measured landscape constructed by outside o Demands removal of other ideals o Showed that the liberal design was working o Fulfilment of one aspect of the national policy  Creation of trans-continental Canadian nation  By means of immigration, protected tariff, modern transportation system o Once acquired the west, Ottawa became a colonizer presiding over a hinterland  Canada not as country, but as part of an empire  Desire was to claim vast real estate for Britain  Wanted stable, farming, European population  New, logical order on lands previously settled haphazardly  Look at straight-line borders of Saskatchewan  Dominion Lands Act, 1872  The Legacy of the Liberal-Conservative’s National Policy o Land policies (Dominion Lands Act, 1872)  Federal government retained control over lands and natural resources  Not the provinces or territories  British constitutional norm  1871, farms given to farmers for $10  But 60 million acres available only by purchase  Land divided in a grid, equal plots  Began to pay off with massive population growth  1901-1921, huge prairie population growth  1931, 25% of Canadian pop lived in the prairies  Cost of growth  Uprooted communities of native Canadians o Threatened hunter/gatherers  Stamped west with grid of individualistic homestead  Problems  Antagonism aroused o Westerners had little influence over region’s most valuable resources  Liberalism valued over common sense or prudence o Headstrong optimism from Ottawa, did not think about variation in the land o Better- than-average rainfall from 1908 to the start of the war allowed full settlement  Then hit by severe drought, forced to leave o Railways  Prairie towns made and unmade by proximity to railways  Vancouver began with extension of railway  The Development of Western Cities o Major phenomenon of the period o 1841, only Winnipeg and Calgary o 1891, Winnipeg, Calgary, Regina, Saskatoon, Edmonton  24% of total prairie population  Railway service essential  Winnipeg became gateway to the west o Trading hub o Grain inspection headquarters o 1902, received more grain than Chicago o City of people from all over the world, wealthy and poor o Gradually declined, functions taken over by other cities o Opening of Panama canal, 1914  Vancouver became very important o Vancouver  Prosperity ignited by Klondike gold rush  By turn of the century, displaced Victoria as the leading commercial centre on the west coast  Creation of Vancouver stock exchange, 1907  Testified to spectacular economic activity  1908, founding of University of British Colombia  Before WWI, basic structure developed  By 1920s, replaced Winnipeg as leading western city rd  Became 3 largest city in Canada, behind Montreal and Toronto o Calgary  Relied on cattle and oil  Still no massive oil boom, but Turner Valley became Canada’s most important oil field o Edmonton  Slower, more uncertain rise  Fur trade challenged by nearby city, until merged  Importance of good connections and lobbyists o Regina  Got the university, so became capital o Saskatoon  Village for a long time until railways came through  1903, became a city o Canadian dream still available in the West  Individualistic ideal  Cities built on credit  Gamble that building of infrastructure would encourage population boom  New social problems  Lives transformed beyond recognition o Promise of national policy fulfilled  Wheat Economy o Cane wheat as a crucial development o 3 main moments  1880s-1890s, focus on Manitoba belt  Best for vegetation  1897-1908, occupation of the best semi-arid territory  Difficult, but still good prospects for development  After 1908, greatest error  Opening of settlement of relatively dry areas  Land that was not suitable for agriculture o 1901-1929, more acres of land available  Wheat production rose hugely  Indication of the potential of the prairies, but economic problems mounted  Perceived unfairness of an emerging national system whereby prairie wheat was taken to the world market o Wheat taken to railway shipping point  Could sell immediately for the “street price,” selling at the “track price,” or selling on the world market  Sell quickly, make less o 3-4 cents/bushel below the track price  Sell at intermediate risk, make a bit more o Fill a boxcar with grain  Sell on risky world market, make much more o 1890s, absence of competition blamed on ownership of elevators, that set prices  Led to first significant reforms in 1900 o In 20 century, farmers, seen as bastion of liberalism, now turned to setting up farmer- owned elevators  Alternatives of the free market system  The Wheat Pool  Rural Society o Myth of the West  Seized the imagination of Canadians and those around the world  Open skies, limitless opportunities, friendly state  Exemplified by the Mounties  Heroes of books, subdued armed, American, whisky traders  Liberal ideals of peace, order, good government  Hard-working men could make a new start  Propaganda and promotional literature pushed  Emphasized optimism in the west  Some was strange o Saskatoon advertised a warm, pleasant climate  Materialistic, self-obsessed, ruthless, rude, and bound for greatness  Moulded new character traits in the individual  Created new society (both positive and negative) o Democracy born on the frontier o Homestead failure in Manitoba ran up to 57%  1911-1931  Does not fit with mythology being developed o Allotted 3 years to succeed o Homesteading – cultivating land, but not having the title to it  Given a period of time to work with it, then it becomes theirs  40% or more failure rate in the beginning  Failed to secure their title o Needed economic advantage from the beginning in order to succeed o Early year, egalitarian period  Common problems  Later replaced by careful stratification  Anglophile elite, then farmer families of SE Europe  Tractor and truck made life more difficult for the poor  Poor undercut demand Wed Jan 23/13 Canadian Liberalism and the Onset of World War I  The Passing of Laurier’s Canada (1896-1911) o Foreign policy under Laurier: 15 years of saying “no”  Principled politician and brilliant tactician  Won the hearts and minds of Canadian historians o “Virtually impossible to dislike”  Civil and religious freedom, tolerance of minorities, liberalism in federalism  Found workable compromises  Smooth, Machiavellian political operator  Dominant political figure of his time, rivaled only be Mackenzie King  1910, won compromise after compromise  In foreign affairs, imperialists vs. Nationalists o Laurier was a realist  Canadian independence was unrealistic and would be divisive  English Canadians felt pushed down because did not have full involvement in Boer War  French Canadians felt that they should only defend Canada, that which was his  Ca. 1910, lack of social and intellectual discourse between French and English, except in politics  Laurier tried to defend the status quo  Canadian militia under English Canadian control by 1910  Laurier promised imperial British support, but included ambiguity in his promises  Hoped that no crisis would erupt that would make Canada have to take responsibility  Said “no”  To further imperial commitments  Called “dancing master”  Rival conceptions of Canada within the empire o The Naval Bill  Late 1908, rumours in Britain that Germany had increased naval program in a drive to overtake British superiority on the seas  Laurier had committed himself to a new naval policy in 1902  But had done as little as possible to bring it into effect  Laurier responded in1910 with the Naval Service Bill  Establishment of Canadian navy under British command  But is war erupted and parliament agreed, might be placed under imperial control  Illustration of Laurier’s compromise  Neither independent nor fully integrated into the empire  Called “tin pot” navy  Navy began with 2 aging British cruisers  HMCS Rainbow and HMS Niobe  Compromise should have worked  But in 1907, Bourassa left Ottawa o Laurier said “I regret your departure” o Height of his influence, worked against Liberals on provincial level o With Naval Bill, saw an issue that challenged survival of French Canadian nation  French Canadian boys would be forced to fight in Europe o Argued for referendum  Summer 1910, election in constituency of Drummond pitted Nationalists vs. Liberals about the Naval Bill  Bourassa wrote that liberal corruption prevailed over nationalism  Laurier depended on unshakable Quebec support  No longer seemed invincible against Bourassa o Reciprocity with the US  1910, Laurier appeared vulnerable in relationship with US  1908, American Canadian relations were good  Only one unresolved issue, that of trading arrangements o Canadian farmers and westerners demanded tariff relief to sell in the American market  January 1910, comprehensive agreement reached  3 principles o Most natural products were to be accorded free entry o Identical lower rates were to apply to secondary food products, agricultural implements o Canadians reduced duties on some other American goods, and vice versa  January 1911, proposals presented to parliament  Triumph for liberal party o Washington was pleading with Ottawa for freer trade  Gradually, conservatives believed they would oppose reciprocity  Fanned anti-American sentiment, tried to gain British support  Canadian businessmen went against Laurier and reciprocity o The election of 1911  Laurier was still in a strong position  Defended campaign against divided opponents  Had been in office for 15 years  In Ontario, Laurier fought on wrong side of navy and reciprocity questions  Wanted commitment to imperial defense  Worried about American investment drying up  In Quebec, Bourassa  Popular, nationalist  Vote was close  Conservative victory, 134-87 seats  Laurier shocked  Individualist liberalism seemed less capable of providing 20 century answers  Laurier represented the 19 century o First French Canadian prime minister  Borden at the Helm (1911-1917) o Initially, did not seem to represent philosophical difference  Called for government ownership  Arrived in office thinking he could sweep out corruption o Systematic approach to civil service, brought naval legislation o The antithesis of Laurier  Grim, grey businessman of Canadian politics vs. Laurier’s Sir Galahad  Extremely Anglo  Failed to attract French support  No sensitivity to French fact o Did not play to British favour  If Canada made a contribution, must also have a degree of influence  A Liberal War Effort o Voluntary enlistment strategy  August 4 1914, British ultimatum to Germany expired  Britain and the British Empire was at war with Germany and Austria Hungary  Borden promised to maintain empire  War seemed to bring Canadians together  Liberals would offer to criticism to war policy while there was danger at the front o Canada intends to stand by England  French Canadians told that England had defended their liberty, now it was their duty to defend the Union Jack  Even Bourassa gave to resistance to the war effort in 1914  No French and English Canadians, only Canadian  War Measures Act passed  Liberals and Conservatives agreed that government required “blanket powers to deal with the war emergency”  Gave the government the power to do virtually anything o In the face of war, invasion o Censorship, deportation, exclusion  Assumed would be a war ended by Christmas th o 19 century Liberal assumption about the state in play  Saw the state as tiny, businessmen ran the economy  Volunteerism became the order of the day  All assumed war would be quick and victorious  Core led by citizen soldiers, backed by compulsory military service  Begins with enthusiastic volunteers  By the end of the war, real military presence o State not afraid to compel people to become soldiers  Aspects of wartime liberalism  Voluntary enlistment strategy o Initially, no legal requirement to go to war o Sam Hughes summoned volunteers to train near Quebec city  Built himself a castle to survey the army o Unemployed flocked to enlist o Cost the government nothing  Recruitment from the private sector o By end of 1914, wanted 50,000 o By 1915, 150,000 o By 1916, volunteering had dried up o Maritimers underrepresented, Ontarians overrepresented o Government 1914 gave a pledge that there would never be compulsion or conscription in the war effort  Private sector provides organization of manufacturing of war material o Followed British liberal model  Laissez faire taken so far that even ammunition left to private sector  Sam Hughes, minister of militia, organized and gave out contracts to those he had pre-existing relationships with  When troops started to complain about the Ross rifle, championed by Hughes, created an issue o Weighed little, jammed often o Preferred dependable British guns o Source of embarrassment to the government  Charges of corruption to Hughes o Forced out of active leadership in 1916 o Rule of private sector  Provided the crucial organization of the manufacturing war material o Organizing the Canadian economy  Perception that nothing drastic would have to be done to change to organization of the economy  Coming of the war wiped out much of the pre-war unemployment problem  1915, military spending equaled entire government’s expenditure of 1913  Opposed to raising taxes  Refused to consider direct taxation, such as income tax  Resorted to asking Canadian people to lend money to the government o 1915, Bond Campaign set at 15 million dollars  Canadians invested 100 million dollars  Until 1917, demands of the war did not require rethinking of liberal framework of society  The Social Impact of War o Canada unprepared for war  1000s of Canadian women and children shouldered the war work  Created image of social utility o Groups and clubs gave time and money to war projects o Attitudes towards the proper role of women in society were liberalized by contribution of women to voluntary groups  Feminists of Halifax run the war effort  Argued that the war was being fought for women’s rights as much as anything else o Created nativism in Canada  Sam Hughes saw new immigrants as a menace  Recommended curfews and court marshals  August 1915, coal miners in Nova Scotia demanded removal of 110 Germans and Austrians from the employ of the Dominion Coal Company  Leaving for the Front o War was very popular in early years  Brought people together, enlivened dullness  Jailed for anti-patriotism  Workers stopped striking  Propaganda aimed towards children o 19 century image of war  Heroic, inspired, noble Fri Jan 25/13 Canada’s Labour Revolt: 1919-1920  Background o War had turned sour  Conscription crisis, 1917-1918  Provoked dispute between French and English  New kind of state emerged  Instead of protecting business interests and minimal social service, state drawn into more activist role in Canadian society and economy o Nationalization of 2 railways o Steps towards regulation of public health and housing o War measures act to exercise power o Formation of union government  Borden’s conservatives and pro-conscription liberals who abandoned Laurier  First break in the 2 party system o Workers broke through the confines of relatively cautious craft union and demand a new social order  Erased border lines that had drawn a distinction between public and private  Had been erased by the state itself o Labour responding to the sweep of the new, progressive state o Society had become politicized  State was seeing to the well-being of society o 3 dimensions  Political  New parties, including Farm-Labour Party and the Communist Party of Canada  Cultural  Ideas, songs, newspapers all testifying to the death of the old capitalist order  Organizational  New forms of trade unions o Drew workers together, regardless of their craft  Labour’s Pre-War Experience o Rapid growth  1901-1921, population increases 64% to 10.3 million  Many were immigrants, some who brought radical ideas o Some were sojourners, working for a short time o Some were permanent settlers  Immigration changed the nature of the working class o Employers depended on workers from Europe o Urbanization  Street car made suburbs possible o Transformation of the competitive to corporate capitalism  Large corporations absorbed small business  Monopolies, no competitive capitalism o Government not stopping international corporate capitalism  Banks controlled industry  Brought in foreign capital from Britain  Changes in the Workplace o Many places, like steel mills, required skill in operation and maintenance o Attempt to replace “craftsman’s moral code” (labour’s idea of a fair day’s work) with “scientific management”  Substitute machinery for manual labour (where possible)  Intensify labour through wage incentives and forceful driving of unskilled labour  Welfare policies to keep key skilled workers o Capitalists were compelled to dominate the workplace and bring more profits o Skilled workers compelled to fight back  The Labour Movement o Labour acronyms  Trade and Labour Congress of Canada (TLC)  Formed as early as 1886  American Federation of Labour (AFL)  International Workers of the World (IWW)  One Big Union (OBU) o Unfair contest  Small size, 19 century approach of trade unions  Number of unionists climbed, but the majority of industrial workers were still not unionized in 1914  TLC remolded in the image of a state federation within the AFL o Craft Union  People coming together who have a common skill, do a common thing o Labour unions are much larger than Craft Unions o Triumph of international unions  Mass immigration from US  Capital was more international, why not labour?  Strength of capital  New international labour markets, capital roamed the world in search of strike breakers and more compliant workers o The state th  Since mid-19 century, state had always been willing to crush worker movements by force  No laws to protect workers who joined unions in retaliation  Few laws regulated wages and hours  Liberal government created department of labour, 1909 o William Lyon Mackenzie King as minister of labour  Industrial Disputes Act, 1907  30 day cooling-off period in mining and transportation o 1914, struggle intensified, workers had few victories, sense of many wrongs that needed addressing  The Impact of War o Enthusiasm for the war was huge  Strikes against employment of immigrants o Followed British model  Laissez faire, all businesses in private hands  Shell committee was organization of 4 Canadian manufacturers who obtained permission through Sam Hughes o Sublet to Canadian manufacturers o Economic factors  Cost of living war soaring  Acute manpower shortage  Huge number went to war, most from industries o Strengthened the hand of labour  Attempt to undermine “crafts” within production o Non-economic factors  War fever led to sense of empowerment  Higher expectations and greater sense of own power and indispensability  Conscription  1917, alienated workers o Represented compulsion and clashed with idea of a working class united across national boundaries o Would place workers at the mercy of their employers  Businesses and politicians seen as profiting from the war o 1918, more polarization  Fearful of impending revolution  RCMP infiltrated every important institution in the West o Government is truly afraid of worker revolt  Saw Bolshevik revolts in Russia  Cabinet prohibited use of 14 languages used by enemy immigrants  Government banned worked stoppages o Workers began to dismantle traditional structure of craft unionism  In west, trade unionists tried to dislodge conservative craft unions  Suggested general strike o Coal miners opposed to own international union o September 1919, Quebec City, conference  Westerners angry with TLC  Demanded it be restructured as an industrial union o Movement defeated o TLC decided on a more conservative path just as workers became more radicalized  OBU was to be an organization of all workers in one union  Activists from socialist party saw this as best defense o In the East, radicalism took another form  AFL seen as less conservative  Had taken on a radical edge under the leadership of CC Dane  Organized into federal labour unions  Amherst (Nova Scotia) General Strike, 1919 o May 1919, workers mounted general strike  Successfully negotiated better hours and pay o 1920, 52 day strike at Halifax shipyards  Largest until WWII, most important o Coal miners supported Marxists  Forced dramatic concessions from coal companies o Labour becomes the official oppositions o Many strikes in 1920  Strike wave more than a normal occurrence  Workers won most strikes  Most in 1920, throughout the province  Winnipeg General Strike o Winnipeg as the “shock city”  Divided rigidly into classes  Many recent immigrants o 1918, capital and labour relations bitterly polarized  Workers outraged by fed’s anti-labour stance  Raids in October for radical literature  October 18, trades union council suggested general strike  No strike order from government  92% vote to strike  December, Walker Theatre Meeting  Calls for labour to rally to the fight for liberty  Calls for a soviet government o May 1919, strike called by metal trades council  May 6, building trades and metal trades council  Labour council held a vote, vast majority wanted a general strike  Including police  Strike committee asked police to stay  Strike committee wanted to maintain public order o 11am, May 15, 1919  Workers in every occupation, with a small exception, walked out on strike  Strike committee kept the water flowing by requesting water workers stay on job  Firefighters kept some working  Some services continued, “by permission of the strike committee” o Federal government drawn in  First concern was “what to do with its own employees that had joined the strike”  Postal workers given an ultimatum to work tomorrow or be fired o Yellow Dog Contract o June 9, entire police force dismissed for refusing to sign Contract o June 16, strike leaders arrested and imprisoned o Bloody Sunday, June 21  Silent parade protested the arrest of strike leaders  After assembling, 50 mounted men swinging baseball bats rode down main streets o Charged the crowd  1 killed, 30 injured o June 26, 1919, strike over o Uniqueness  Women organized and mobilized  Veterans and returning soldiers, majority siding with strikers  Social Gospellers, important in founding CCF, adhered to Protestant ideal, major part of the group  JS Woodsworth o Passivism in WWI caused him to lose position as reverend o Object of unfriendly attention of Winnipeg telegram  Lumped in with red socialists and anarchists o Outcomes  Short term, total defeat  Demands not met, leadership put on trial, almost 200 people were deported  Medium term, fueled Red scare  Drive to eliminate subversives and jail those with radical opinions  Long term, benefit for labour  Inspirational myth, call to arms, warning to future governments that there were conflicts that needed to be seen to   Fading of the Red Years o Eruption of class consciousness gave way as the recession set in in 1920  25 firemen went on strike for more pay, simply replaced  Hope gave way to caution o Sense of every man for himself o 2 choices  Abandon dreams of leave Wed Jan 30/13 The Rise of Mackenzie King  William Lyon Mackenzie King o Born 1874, chosen as Laurier’s successor in 1919 as leader of the Liberal Party  Leader 1919-1948  Prime Minister for almost 22 years o “Not necessarily conscription, but conscription if necessary”  2 great conscription debate, 1948  Distillation of how he approached politics  Famous for his ambiguity o How he was seen  From the conservative nationalists, seen as selling out to Americans, weakened ties to Britain by pushing autonomy  Very spiritual, lived a double-life o Communed with the dead, made important state decisions based on numerology  Respect for him among liberal perspective  Architect of supreme compromise nd  Preserved federal institutions and brought dominion through 2 world war  Respected even more by neo-Marxists and political economists (socialists)  See bold anticipations of welfare state and regulated capitalism in post- war Canada  Adversary and major architect of corporatist liberalism  From Borden to Meighen o Youngest prime minister in Canadian history  Brilliant, eloquent politician o Hard and fast principles  From a poor farming family, managed to graduate from University of Toronto  19 century, liberal economic principles  Favoured protectionism (in contrast to free trade)  Right winged, high tariff end of Liberal spectrum o 1919, forceful and reactionary force o Five things against Meighen as he entered the 1921 election  Sponsorship of the Military Service Act in the war  Never forgiven in Quebec o At the height of the debate over conscription, called French Canadians “a backward people”  Identified with crushing organized labour  In Winnipeg, had smelled a Bolshevik conspiracy o Approved illegal arrest of strike workers  Seen as the enemy of the poor  Rise of the Progressive Party  United radicals and moderates on a platform of low tariffs, regional fairness, support for farmers  If Progressive Party could capture 50 seats, Meighen government could not be re-elected, Liberals could not win majority  Autumn of 1920 – Depression  Worst depression of modern times  Depression of 1929 started earlier in some areas  Antagonistic towards social reform  Popular after WWI  The Arrival of Mackenzie King and the 1921 Election o Election results:  Liberal Party (Mackenzie King), 118 seats  Progressive Party (Thomas Crerar), 58 seats  Conservative Party (Arthur Meighen), 49 seats o First time there were 3 legitimate, viable parties contesting the election o Meighen and Mackenzie King hated each other  Minister of Labour under Laurier  Remained loyal to Laurier in 1917 o Increased his support in 1919  Meighen found King physical repulsive  King saw Meighen as cold, savage, champion of aristocracy o Bad wartime record  Had not fought in Europe  Was a consultant on labour matters to American industrialist Rockefeller o Recorded everything in his diaries  Victory came from god o Meighen made the mistake of running an honest, conservative campaign  Platform was the maintenance of existing policies  Including high tariffs, scorned free trade  Upsurge of radical ideas among voters  Meighen declared they were all striving for the unattainable, not working hard enough or smart enough  Assumed the electorate was a jury  Cautiously weighed political arguments set before it o King was the contrast  Almost no substance in in long, pious orations  Promised freer trade in the west, protection in the east  Painted election as a struggle of the people  Needed restoration of parliament’s ancient rights o Usurped by autocratic war government o Meighen as the architect of evil  Welcomed liberals who had left Laurier in 1917 during the conscription crisis  Healed liberalism that had seemed irreparably wounded  Had 2 trump cards  Quebec o French Canadian alter-ego  Manager, LePoint, in Quebec  Progressive Party o Not meant to be a real third party, but rescue liberalism of the Liberal party o Absorbed the Progressives back into the Liberal party  “Liberals in a hurry”  Mackenzie King as PM, 1921-1926 o First move was to absorb the Progressives  Crerar had finished 2 , could become leader of the opposition  Refused, gave it to Meighen  More issue-based  In exchange, reduced tariff enough to receive support, but not enough to disrupt east o Extended Canadian autonomy in international affairs  1922, British PM asked for Canadian military aid in Turkey  Replied that the Canadian government could not consider giving troops without consulting parliament, but doubted the crisis would justify a parliamentary hearing  1923, signed fisheries treaty with US  First time an overseas dominion was making own decisions  1926, dominions were equal and independent partners of England o 1925, King lost power and his own seat  Liberals began grooming his replacement  But did not resign  Persuaded governor general, Lord Byng, that he should meet parliament and attempt to win its confidence  King-Byng and the “Constitutional Crisis” o 1926, no one would have thought King would continue political career  Lost election, major customs scandal  Customs department full of corruption, nation-wide smuggler’s ring o King had promised the leader a seat in the senate o Drove away new supporters o Byng refused to allow King to dissolve parliament  Seemed absurd and dishonest, Meighen was ready to govern if King could not  King had promised that if he could not govern, would allow Meighen o King said he had ruled for 7 years o Repudiation of gentleman’s agreement  King resigned o House assembled, King rose to say that he was no longer Prime Minister, only a MP  Said that the governor general had declined to accept his advice to grant a dissolution, which he believed himself entitled  Laid a trap for Meighen  If Meighen accepted office, would argue that governor general had gone against constitution  Meighen, had not taken office, would humiliate the crown o As Meighen took power, King moved to win over wavering Progressives  Took advantage of a law that stipulated PMs had to forfeit seats and run in by- election before assuming office  Meighen, to keep majority, had to appoint all ministers as acting ministers o Received no salary o King rose and asked each cabinet minister if they had taken an oath of office  Had not  King accused acting ministers of usurping the authority of Canada  Having taken no oath, had no right to govern o Could either take oath, resign, face by-election  Constructed illegally, Meighen had mocked British parliamentary practice  Launched 2 attack  Declared that no British monarch had refused PM advice for 100 years o Reduced status from self-governing dominion to colony o Seen as nationalist fighting for sovereignty, and also as defending the crown from Meighen o Result: customs scandal ignored, King portrayed himself as the guardian of Canada’s independence  July 2, Meighen government defeated by one vote  TW Bird, Progressive, paired with absent member of opposition o Had cast vote inadvertently o Next day, King won 128 seats to 91  Controlled parliament and the Liberal party  Would control, without challenge, for the next 2 decades  Mackenzie King’s Historical Significance o Suspicious of steps towards Imperial Union o Attuned to Quebec opinion  Saw deep, French Canadian resistance to foreign war o A fundamental shift on the liberal tradition of political economy, which narrowly confined the state’s role in society o Wrote Industry and Humanity  Emerged from work for Rockefeller foundation  Mackenzie King as an “Organic Intellectual” o Speaks for the interests of a specific class  Sought to win consent to counter-hegemonic ideas and ambitions  Organic to the interests of a class o King was a combination of bureaucrat and big businessman who would remake Canada in the 2 quarter of the 20 century Fri Feb 1/13 Atlantic Canada in the 1920s  Images of the Maritimes: Peggy’s Cove, Bluenose, and Evangeline o Constructs of the 1920s  Images creating idea of unchanging conservatism o Thoughts in terms of a unified Maritime nation  Poor relations with the rest of Canada o 1920s, tourism massively increased  Anti-modern images flourish, especially at times of wrenching modern change  The “Maritime Problem” in Perspective o Maritime economy collapsed  Outflow of people from this regions greatly increased  Provinces came to feel a sense of regionalism  Advent of monopoly capitalism  Rural decline, collapse of small industries o Many of the most productive age group left  Absolute crisis o Why?  Outsiders blamed Maritime conservatism  But not sure why outside capital did not take advantage  Can blame on industry, but Iceland relies on fishing even more and turned out fine  Blamed on unbalanced policies  Highly unsympathetic governments of Meighen and King o More worried about west than east  External control aided by internal policies  Fragmented economy without strong business leadership or metropolis o New Brunswick, Nova Scotia, PEI hesitant to join confederation  Movement from maritime union to confederation of all British colonies  Why?  Suspected the real motives behind enthusiasm for confederation was to better the Canadian credit rating and to proceed with railway scheme  Suspicious of Canadian record of protecting the tariffs o Higher than those in the Maritimes  Meant increased cost of production  Confederation imposed  Nova Scotia and New Brunswick joined in 1867 o Much resistance, but eventually gave in  Recurring disappointments in federal government  Senate was a rest home for aging politicians  Managed to block some tariff increases in 1870s, but much depended on balance of power in Ottawa o Because of reliance on the tariff, needed much more money per person than the rest of Canada  Not given enough  PEI driven into debt, forced into property taxes  Many left the Maritimes for the US o But coal and steel industries growing fast  1900-1920, rose over 400% o Industrialized, but most industries were externally controlled  The Postwar Maritime Depression o Maritime identity emerged after the war o 1920s, maritime industries collapsed and many left the region  Fishing, lumber, mining, agriculture, manufacturing all entered a period of crisis  Left near destitution  Many problems were outside federal jurisdiction o International fall in prices o Exports to the US declined o Disruption of traditional trading patterns, growth in protectionism o Made worse by federal policy  Maritimers no longer able to secure the maintenance of railway tariff policies o Extreme international competition in fishing o Wartime construction and industrial boom ended  Jobs lost in every sector of the economy o Responses to crisis  Many left, especially labourers  Union membership was halved  Growing power of cities in the west created acknowledgement of decline of maritime power o Loss of representation in parliament after 1881 o Subsidies became an issue  Alberta and Saskatchewan created, received subsidies  Massive land giveaways  Manitoba, Ontario, Quebec expanded  Maritimes not compensated or given grants for public lands  Five Key Issues in Maritime Rights Movement o Question of representation  Reductions in federal representation justified by BNA act  Maritimers argued it counted on only 4 provinces, but denied  1914, agreement to make senatorial representation a basic minimum in house of commons in return for their consent to increase western senators  Given no cabinet representation o Subsidies issue  1905, Alberta and Saskatchewan given usual subsidies and grants  Later received per capita debt allowance, a further subsidy that would continue to increase o Maritimes did not receive anything o Loss of autonomy on the intercontinental railway  ICR followed circuitous route, thought to be longer than necessary  Maritimers see the railway as a political right, not a charity  Railway Act, 1919, provides for the integration of government railways as a single unit  Bailed out many corporations for Conservatives  For Maritimers, insult o Maritimers want a new “progressive” state, but they are in no position to obtain one  Maritime rights as a progressive movement  Social revolution that demands a new state for the collectivity  Often supported by those who supported the social gospel  Demanded social legislation  E.g. mother’s allowances  Came up against fiscal inability of government to provide it o Industry and banks passes out of regional hands  From 1890s, even the Bank of Nova Scotia became externally controlled  Maritime Rights in Perspective o Maritimes right movement slowed by emphasis on old parties and division in its ranks  Some favoured coalition of Liberals and Conservatives to demand constitutional revisions to give them control over their own trade and tariff policy o 1921, Liberals are the first to support maritime rights  King even presents himself as a Maritimer (sat in a PEI constituency)  Liberals win every seat  Needed to placate and absorb the progressives o West was unsympathetic to Maritimes o 1923, Tories replaced Liberals for maritime rights  Meighen wins Acadian constituency on basis of maritime rights o 1925, support for Maritimes carries Conservatives further than ever before  King appoints royal commission  Made some useful recommendations from a maritime point of view based on need and use of transportation as an instrument for regional development  Made grants conditional on Maritime “good behaviour” Wed Feb 6/13 The Impact of the Depression, 1929-1935  Ottawa, June 22, 1935 o On-to-Ottawa Trek  Well-dressed politicians on one side, working men on the other  Arthur Evans (Slim Evans) was the leader of the working men o Different in dress and physique from PM o Organized coal and hard rock miners in western Canada o 1920s, joined Communist Party of Canada o Demonstrated the unmarried, unemployed men of the depression  Single, Unemployed Workers Association founded by the CPC  Unrest spread through work camps  Workers trekked to Ottawa  Communist inspired and led, but support came from throughout population o R.B. Bennett  First millionaire to become Prime Minister o R.B. Bennett wanted to prove that the Trek was nothing more than a movement of foreigners who had been duped by criminal agents  Questioned each member of the delegation  Most not born in Canada  Bennett did not want to negotiate  Thought they were not worth it, their discontent stemmed from Soviet agents, camps were comfortable as any place  Tried to create the problem as something Other o Evans called the Prime Minister a liar  Attempt at propaganda  Not fit to be PM  The National Contours of the Depression o Some statistics from these remarkable years  By 1933, the total value of world trade had fallen 65% compared with 1929  In Canada, the gross value of pulp and paper and base metal product shrank from $248.5 million in 1929 to $117.5 million in 1932  Between 1933 and 1936, about 12% of all Canadians received emergency relief, while another 5% relied on charitable aid, mother’s allowance, or old age pensions  More than 1.5 million people out of a population of just 10 million  On estimate said 20% of the population relied on relief o Unanticipated, mass unemployment o Massive cutbacks on government expenditure  Saw the men as lazy, drunk, shameless  19 century, liberal individualist ideas  Let them suffer for it  Ration cheques go to landlords, grocers o Everyone would know who was on the dole o Poverty and unemployment must carry a stigma  For relief, had to give up personal privacy  Inspection of home and bank account  Reference of unemployment  Surrender car license plates  Had to accept any work provided by authorities  Soup kitchens, homeless shelters, shanty towns  Department of national defense organized relief camps and building projects  Workers often complained of the military regiment o Reminded everyday of their inadequacy  Single men seen as a threat to national security  Work was often not of much use  The Regions and the Depression o The Maritimes  Capita income of $185 in 1933 was only marginally about the Prairies’ $181 and very substantially below the Canadian average of $262  No exodus from the Maritimes, because there was nowhere else to go o Independent Dominion of Newfoundland  Economy influenced by 2 centuries of exploitation by outside forces  1933, responsible government given up, returned to British rule  Response to popular movements o The Prairie West  Average wheat crop in the 1920s produced 350 million bushels, whereas in the years 1933-1937 it produced an average of 230 million bushels  Approximately ¼ million people moved out of the Prairies, 1931-1941  A bushel of no. 1 Northern Wheat that had earned a farmer $1.03 in 1928 was worth $0.47 in 1930, $0.37 in 1931, and $0.29 in 1932  Too much wheat available on the world market  Drought, economic exploitation  R.B. Bennett and the Depression o Bennett was a throwback to an earlier political age, in 3 senses  Bennett was every inch a take-charge Prime Minister, who had no confidence in anyone’s opinion but his own  He was a throwback to the old ideals of Empire  Bennett’s economic policy as a reversion to high Conservative orthodoxy  His only real response to the Depression was the policy of high tariffs o Defeated King in the 1930 election  King had blundered in the House of Commons  Taunted King with his book  Said he would never give money to a Conservative Tory government for unemployed purposes  King destroyed by Bennett, even though he had predicted a majority o Replied to the letters he received, often sending his own money o 1935, declared individualist capitalism dead  “The old order is gone, it will not return. I am for reform. Reform means government intervention”  If cannot abolish the dole, should abolish the system  Sincere reversal of ideas, but came too late  King defeated him in the next election o Dealings with Communist Party showed his far right leanings  Communists saw the toppling of capitalism  1931, Bennett arrested 9 communists under section 98 of the Criminal Code  Banned unlawful associations  1932, radicals imprisoned  1935, RCMP charged an open air meeting in Regina  Killed one, injured many, demolished On-to-Ottawa Trek o Too little, too late  Alienated and radicalized much of the population Fri Feb 8/13 Constitutional Crisis and Opportunity during the 1930s  Book Review o March 8 by 4pm o 1500-2000 words o Concise summary, ¼ of review o Criticism and praise, ¼ review o Think about Canada as “project” or “process”  Is Canada changing?  What do the authors say?  Do you agree or disagree?  Why?  ½ review  The Constitutional Background and the Rise of the Populist Protests o Bennett’s policy  Local responsibility for the jobless o Three key ideas about federalism in the 1930s  Constant squabbles over who would foot the bill for the unemployed  Power of the federal government expanded  Began to recruit a core of senior civil servants who wanted to expand authority  “Re-confederation”, a new and far-reaching foundational doctrine  All Canadians were allowed to enjoy services at the average, national level  Beginning of a reversal of 6 decades of decentralization  Amendment of BNA Act o Constitutional history  BNA Act, 1867  Centralist document, but not explicit o Interpreted in a decentralist manner since 1970s  Gave province many powers o The Bennett New Deal  1935  State interventionism to save capitalism from itself  His party did not hear about his change of face until the radio broadcast  Measures providing unemployment insurance still left 40% of the workforce unprotected  Supported by the Liberals  Betted that most of the deal would be found unconstitutional o It was  1937, Privy Council ruled it Ultra Vires o “Ultra Vires”  Outside the jurisdiction of the federal government  Ottawa could not act unilaterally o Alberta, Ontario, Quebec Challenges  Premiers represented provincial rights  Quebec’s assertion of rights was grounded in Canadian nationalism  Admiration for European fascism in conservatives o Populist, nationalist sentiment  Duplicy came to power, put in padlock law o Illegal to use a house or hall to propagate communism or bolshevism, or publish or distribute literature intended to propagate communism  In Ontario, Hepburn  Conservatives called him a Bolshevik, extreme leftist  Became friends with Duplicy, alliance to stop King from expanding federal powers  Alberta  Elected social credit government, 1935 o Drew anti-Semites and anti-capitalists o Broad, social base of nearly everyone  Won majority  Douglas represented new economic theory o Popularized by Aberhart  Sunday broadcasts  Credit of Alberta Regulations Act o Credit policies shaped to produce Alberta producers  Disallowed as invasion to federal jurisdiction  The Breakdown of Federalism: The Case of the Unemployed o The doctrine of “least eligibility”  A Liberal inheritance from Britain’s Poor Law Amendment Act, 1834  Federal and provincial pushed responsibility for unemployment back and forth  More focused on money, but provinces went into great debt by trying to meet unemployment crisis o Only Ottawa could help  Canada among the last to create unemployment insurance, based on least eligibility  First goal was to preserve the motivation of those who worked, not protecting the unemployed o Particularly preserving those in the worst jobs of society  If relief was degrading, only those in genuine need would be pushed to seek it  Bennett promised to abolish the dole, the only unemployment stance in his docket  Needed to appear interested in resolving the unemployment crisis, but imposed conditions no province would accept  King took over, but his policy was similar to Bennett  Not about to do anything about unemployment  1935, provinces cooperated with new commission  Reduce Ottawa’s commitment to unemployed  Rowell-Sirois: The “Fathers of Re-Confederation”, 1940 o Transfer of functions and powers to Ottawa  Depression not manageable at the local level  Some provinces about to default  King argued for appointment of royal commission on financial relations  Cabinet agreed to appoint a commission to study the looming financial disaster o Landmark in the development in Canadian federalism o Full federal responsibility for provincial debt o System of national adjustment grants to make payments to poor provinces  Equalization o Grants to provinces o Federal responsibility to UIC, income tax, provincial debt o Importance th  Represented dramatic new vision of a 20 century Canadian state  Not to be preoccupied with social welfare, but with the overall management of the economy o Responsibility in the unemployed would make the dominion more interested in the management of the economy  New concept of Canada for historians and intellectuals  New interpretation of confederation o Focus on the intentions of fathers of confederation, thought to have wanted what the intellectuals wanted  Strong, central government  New public presence of highly-trained cadre of civil servants  Becomes professional civil service  The Significance of 12 June 1940: A Step Towards the Welfare State o British parliament amended BNA Act  Gave federal government jurisdiction over unemployment insurance o From this time on, the federal government would involve itself in the daily lives of its citizens in a crucial way o The welfare state is a state in which transfer payments made to households, health care, and education constitute the predominant and routine spending activity of the state and its employees Wed Feb 13/13 The Transformation of the State, 1939-1945  Defining the Welfare State o Rise of the modern state in Canada  Significance of WWI, but seems to come 1940-1965 instead  One breakthrough in the midst of WWII  Second breakthrough in the 1960s  Key transformation in the 1940s  Philosophy of the state towards social welfare o Before, social welfare should uphold the protestant work ethic, focus on private relief agencies, administer only to those who are unable to take care of themselves o Now taken on by the state  State protects every individual, taking responsibility from the private sector  Changes concept of the duties of the state and the rights of citizens o 1940s, decade where our own times begin o 2 great foundation for the reordering of society  Extension of social welfare  Legitimizing of the labour movement o What is the welfare state?  Mixed economy  Liberal polity  Greatly expanded social welfare structure o Why did it emerge?  Modernization  Income, urbanization, population increase  Functional within a sophisticated and complex society  Liberal explanation  Politicians needed to win votes from interest groups o Influenced by humanitarian concerns  Neo-Marxist Approach  State intervention was needed to assure continued private capital accumulation  To preserve the stability of the capitalist system, labour had to be regulated and provision made for an educated and mobile workforce  To forestall political challenge to the system, strategic concessions had to be made to the working class o Gramsci – passive revolution  Indicates the constant reorganization of state power and its relationship to the dominated classes, in order to preserve ruling-class domination and to exclude the masses from exerting influence over political and economic institutions  The bourgeoisie adopts passive revolution when its control is weakened in any way or challenged by active masses  The “passive” aspect consists in “preventing the development of a revolutionary adversary by “decapitating” its revolutionary potential”  Concept developed in order to explain how the bourgeoisie has survived despite immense political and economic crises  According to Gramscian theory, it is crudely simplistic to somehow see state economic intervention (as today’s neo-conservatives are want to do) as an opposite to the market  Actually prompted by desire to save its own excesses  Social Democracy and New Visions of the State in the 1930s o “Passive revolution”, an attempt to decapitate a radical challenge be absorbing its most popular ideas and some of its leaders  This would become the postwar relationship of social democracy and liberalism  Liberalism would, when it needed to, borrow freely from social democratic ideas  Implications:  New Social Security Measures o August 4, 1943  Conservatives routed Liberals in Ontario  Rise of the CCF  From no seats to 34 seats, became official opposition  Socialists won over 400,000 votes  Universal health care emerges here first o Election of the first socialist government in Saskatchewan  Liberal party had to be reorganized  Had to either embrace or yield to the policies of the CCF o 1945, Liberals clung to power by advertising new Mother’s Allowance programs, and hinting at future welfare policies  CCF held 15% of popular vote  Only Liberal party changes kept CCF from office o Civil service grew astoundingly during WWII o No one wanted to get rid of social assistance programs  The Wartime Labour Revolt o New social security was one of the 2 great pillars of the Canadian state  Other was a new attitude towards the labour movement o WWII solved the issues of the depression  0% unemployment in Montreal o Unions made great strides  Newly empowered workers had no intention of returning to the conditions of the 1930s o More strikes in 1943 that ever before  At least 402 strikes, 1/3 industrial workers in Canada o What to do?  Repression, used War Measures Act to lock up communists in internment camps  But could not lock up hundreds of thousands of trade unionists  Made a deal, 1944  Order in Council number 1003 o Intended to remain in effect only for the duration of the war o Guaranteed right to organize and bargain collectively o Established procedures for the compulsory recognition of trade unions with majority support  Obligated management to negotiate o Defined unfair labour practices o Established administrative tribunal to enforce mediation between labour and management before a strike occurs  Grand Formula, after WWII o Allowed collection of union dues  These are regarded as the fundamental changes of policy that changes labour movement into something part of the state  The “Passive Revolution” of the 1940s o State control of the market  Indication of the state’s new importance  Board had power to control necessities of life  Wage control on wartime industries and partial price control on other essentials  Ration book issued to each person  Only received certain quantities o Crown corporations and the national coordination of labour  Department of munitions and supply  Created 1942  28 crown corporations were formed to strengthen Canada’s industrial capacity  People begin to work for the government o Propaganda and censorship  State began to shape public opinion  Posters everywhere, film was vehicle for propaganda o Unitary state, the suspension of federalism  Federal state became focus of state activity during the war  Provinces required to vacate certain tax deals o After the war, refused to let federal government hold these powers  More drastic centralization of power o Family allowances  First big installment of the welfare state came in 1945, with family allowances  Represented landmark in evolution of Canadian welfare state  Represented radical shift in the approach of the federal government  Financial commitment into the economy o 40% of pre-war expenditure  With federal unemployment insurance, represented shrewd choice  Even Quebec nationalists could not fight against  Conclusion o
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