Chapter 2 Economy & Development - Home & Announcementsoneillshistory.weebly.com/uploads/1/3/4/6/13465939/... · –Owners, managers and supervisors were mainly English speaking men

Chapter 2 – Economy & Development

Chapter 2 – Economy & Development Section 4: The Contemporary Period (1867-PRESENT)

Part 1: Reciprocity Treaty, National Policy, agriculture in the late 1800s and 1st phase of industrialization

Economic Indicators

• Things that the government will look at to see if the economy is doing well or not:

–Gross domestic product (GDP)

–Employment/unemployment rates

–Balance of trade

–Expansion/ contraction periods

Economic Indicators

• Gross domestic product (GDP)

• A way to see the growth or contraction of a country’s economy

• Looks at: – What people spend on goods, what people earn,

government spending, etc.

• If GDP grows the country’s economy is growing

Economic Indicators • Employment/unemployment rates

• Percentages of people who are working (employment) OR not working (unemployment)

• If the economy is doing well, chances are that unemployment rates drop

Economic Indicators

Economic Indicators • Balance of trade • Compares a country’s exports against the

country’s imports • If a country exports more that it imports = trade

SURPLUS • If a country imports more than it imports =

trade deficit • Trade surplus can be good and so can a trade

deficit… • Trade surplus = companies are creating jobs • Trade deficit = many products are entering the

country = competition = lower prices for goods

Economic Indicators

• Expansion/contraction periods

• If a country’s economy is expanding more production, more exports more jobs (STRONG EMPLOYMENT RATE)

• If a country’s economy is contracting less production, less jobs (high UNEMPLOYMENT) RECESSION

Economic & Development Vocabulary

• Primary Sector: part of the economy that deals with exploiting natural resources (mining, logging, etc..) OR different types of agriculture (wheat, vegetables, dairy, livestock)

• Secondary Sector: making things using raw materials (manufacturing) in factories

• Tertiary Sector: Services for people (banking and finance, administration). Retail services (stores), social services (healthcare, education). Sometimes the tertiary Sector jobs require more education and get better salaries…. Sometimes not (retail)

Economic & Development Vocabulary • Cash crop: types of crops that bring in a lot of profit

for farmers • Agricultural production: what is produced by

farmers over a period of time • Market: where companies can/will sell their goods • Unskilled labour: workers that require no formal

training • Work force: the people involved in working in a

specific industry • Raw materials: materials used to make a good • Manufactured good: A product that is made using

raw materials

No more Protectionism… Viva la Free trade!

• In the mid 1800s Great Britain adopts a new economic policy FREE TRADE

• England did not protect colonies anymore • No more protectionism & preferential tariffs for BNS colonies • BNA colonies HAVE TO COMPETE with countries from around

the world

• Consequence/Result: – The economy of Canada East/Quebec no longer has a

secure trading partner – Exports (timber, wheat) decrease jobs lost in

(Canada East / Quebec) – Economy goes into a downturn (recession) – United Canada will seek new markets and trading

partners USA

The Reciprocity Treaty 1854-1865

• No more protectionism (‘Corn Laws’)

• Corn laws = guaranteed good rates for colonies’ sale of agricultural products like wheat

• Corn laws gone by mid 1800s

• United Canada signs a trade deal with USA ‘Reciprocity Treaty’ in 1854

• Trade between USA & Canada with minimal taxes/duties

• Goal of the Reciprocity Treaty increase the sale of Canadian goods in the USA = more production in Canada = more jobs

The Reciprocity Treaty 1854-1865

• During the American Civil Way Great Britain lent support to the Southern (Confederate States)

• Consequence non-renewal of the Reciprocity Treaty with the BNA colonies in 1865

• United Canada (Canada West, Canada East, New Brunswick, Nova Scotia

• Consequence = BNA colonies lose a good trading partner = loss of production = loss of jobs

Canadian Confederation July 1st 1867

• One of the arguments for the BNA colonies to join together create an ‘internal market’

• Raw materials and goods could be moved around and sold a market within the country

• Join together to help pay for and build infrastructure to make this possible railways

• This argument helped push the BNA colonies towards Confederation

• First 4 provinces: – Quebec – Ontario – New Brunswick – Nova Scotia

‘Red Ensign’ – First flag of Canada

Canadian Confederation July 1st 1867

Economic Crisis in Canada in the 1870s

• Economic crisis in Europe = Economic crisis in North America

• Recessions all over the world in the 1870s

• Problems in Canada:

– Low demand for Canadian goods / products

– No money invested in Canada

– High interest rates difficult to invest in companies in Canada

– Companies in Canada are struggling = Cannot hire as many workers = unemployment

– Less tax money goes to the government

John A. Macdonald’s National Policy

• John A. Macdonald = first Prime Minister of Canada (1867-1873 & 1878-1891)

• A.K.A. ‘Johnny Mac’ OR ‘JAM’ • Political Party = Conservative Party

of Canada • During JAM’s second term as

Prime Minister wanted to fix Canada’s economy & unite Canadian Provinces

• 3 main points of NP: – Protect Canadian companies against

foreign companies – Increase the number of railway lines

from East to West – Increase immigration to Canada

‘Johnny Mac’ in 1879

This is gonna look good on my ‘Insta’ profile…. Wait… Instagram will only be invented in 131 years…..


Promotional poster for JAM’s ‘National Policy’- late 1870s


• Protect Canadian industries/companies

– Increase tariffs (taxes) placed on foreign products (USA, etc.)

–Reduce competition from foreign companies More people will then buy Canadian products

– Increase Canadian production more jobs!

– Tariff money Used to build infrastructure railroads!

– Foreign products = goods from other countries sold in Canada


Promotional poster for JAM’s ‘National Policy’- late 1870s


• Build Railways

–Use tariff money and tax dollars to build railways

– Transcontinental railway railway from East to West (across Canada)

– Railway used to transport immigrants to the Prairies (Western Canada) Remember Population & Settlement?

– Railway used to transport raw materials to factories and finished products to be sold across Canada


Ceremonial ‘last spike for the Canadian Pacific Railway – November 7, 1885 in British Columbia


CPR promotional map in 1885


Telegram sent to JAM to announce completion of Canadian Pacific Railway


Train leaving Donald, B.C. in 1885


• Encourage Immigration –The Canadian government wanted

immigrants to help increase Canada’s population (especially in Western Canada)

–More immigrants = more settled territory, larger potential workforce, more people to buy Canadian goods, more taxes


• Results of JAM’s National Policy: – Focused on the secondary sector (manufacturing)

– Ontario benefitted the most, Quebec second

– Many railway lines were built

• Canadian Pacific Railway connected Eastern/Central Canada to Western Canada & British Columbia

• High cost to build railways / corruption

– Western Canada was settled by many immigrants

• Not as quickly as hoped

• Many immigrants chose the USA over Canada

Improvements in Agriculture - late 1800s

• Early to mid 1800s:

• Quebec farmers focused mainly of subsistence farming

• By the 1870s:

• Machines help farmers work quicker

– 1877 steam thresher

– 1880s mechanical mowers

– Late 1880s mechanical tractors

Improvements in agriculture - late 1800s

• Famers started to move away from traditional crops

• Move towards special ‘cash crops’ (tobacco different vegetable)

• Move towards the dairy farming milk, butter, cheese

• Railways helped farmers move their products to the growing cities

• The USA also bought dairy products from Québec dairy farmers


Redford’s Farm- Vegetable crops- Ste. Anne-de-Bellevue-late 1890s


Redford’s Farm- Livestock- Ste. Anne-de-Bellevue-late 1890s


• The Quebec & Canadian government opened agricultural colleges until early 1900s

• Teach farmers and children of farmers new agricultural techniques

• Improve agricultural production

• MacDonald College (1907) Now McGill’s Macdonald campus and CEGEP John Abbott


MacDonald College – Ste. Anne-de-Bellevue- 1907


Left: MacDonald College – Ste. Anne-de-Bellevue- 1907 Right: John Abbott College – Ste. Anne-de-Bellevue- 2012


MacDonald College – Greenhouses- Ste. Anne-de-Bellevue- 1907


MacDonald College – Poultry- Ste. Anne-de-Bellevue- 1907

1st Phase of industrialization • When:

– Approximately 1850-1900

• Where:

– In URBAN areas

– Montreal (close to the water and railways)

– Quebec City

• What:

– Exploitation of natural resources (timber, iron-ore)

– Manufacturing

• Food processing, textiles, tobacco products, building transportation equipment, timber products

1st Phase of industrialization • How:

– Raw materials were transported (train AND/OR boat) to urban areas

– Raw materials were used to produces manufactured goods in FACTORIES

– Factories used STEAM ENGINES THAT RAN ON COAL POWER

– Manufactured goods were shipped and sold to different markets across Canada and other countries

1st Phase of industrialization • Who:

– Owners, managers and supervisors were mainly English speaking men of British origin

– Most of the investment in the 1st phase came from British investors

– The workforce was:

• Unskilled

• Francophone or immigrants

• Men, women and children (as young as 6-7 years old)

1st Phase of industrialization

Artisans to Factories powered by COAL



Textile Factory late 1880s (artistic depiction)


Textile Factory late 1880s (artistic depiction)

Weekly salaries in Montréal 1889

Type of work Men Women Children

Cotton weaving

$4.80-$6.00 $4.50-$4.80 $1.50-$5.00

clothing $6.00-$9.00 $3.50-$5.00 -----------

Tobacco $6.00-$8.50 $1.50-$3.75 $1.50-$5.00

Shoe making $6.00-$16.00 $1.50-$7.00 -----------

Element of phase 1 Characteristic

Technology used Steam Engine that ran on COAL POWER

Capital ($$$)/ investment

Majority British men owners of the companies

Transportation Railways AND/OR boats to transport raw materials and manufactured goods

Sites for industry/factories Urban areas (Montréal, etc.)Close to transportation, work force, investment

Types of industries Food processing, leather, textiles, timber, tobacco products, transportation equipment

Markets Local markets, Canadian markets, some international

Labour/ work force “CHEAP LABOUR”, Francophone/immigrants, unskilled, men/women/children

Connections to the Progressions of learning



Documents

Chapter 2 Economy & Development - Home & Announcementsoneillshistory.weebly.com/uploads/1/3/4/6/13465939/... · –Owners, managers and supervisors were mainly English speaking men