Economic Boom, Economic ProblemsCANADIAN HISTORY 1201

Winnipeg General Strike, 1919o This was the most important and dramatic strike in Canadian

historyo 12,000 workers in metal-building trades wanted the work

week reduced and wages increasedo The employers refused to deal with the union so the

employees went on strikeo To show their support, 30,000 workers from other trades went

on strike as well◦ This resulted in a General Strike◦ Almost all industries and key services shut down

Winnipeg General Strike, 1919

o Violence erupted in Winnipeg and one striker was killed and strike leaders were arrested and jailed

o June 21, 1919 became known as Bloody Saturday

o The government, factory owners and police joined forces and defeated the workers and forced them to return to work

o In the long term, the strike drew attention to social and economic conditions that working people had to endure

o In the 1920s labour leaders were elected to all levels of government

The Decline of the National Policyo In the late 1800s John A. MacDonald’s Conservative

government put in the “The National Policy”◦ Its purpose was to protect the Canadian manufacturing industry

and to avoid becoming dependant on the United States

o In the 1920s there was a New Economy in Canada based on:o Electricity

◦ Mining – INCO in Sudbury (Nickel) and ALCAN (Aluminum)◦ Pulp and Paper – Mills in Quebec, Ontario and New Brunswick

o Manufacturing◦ Industrial developments in central Canadian urban centers such

as Montreal and Toronto

o Manufacturing (cont’d)◦ The importance of the economy shifted away from the western

provinces to Ontario, Quebec and British Columbia◦ To access Canadian resources for automobiles and manufacturing,

there were massive amounts of American investment in Canada◦ Trade with Britain declined and trade with the United States

increased◦ The changes in the Canadian economy shifted from East-West

trade to North-South trade

The Decline of the National Policy

Economy on the Upswingo By the mid-1920s, the Canadian economy was on the upswingo Foreign investors had a new confidence in Canada and

investment picked upo Wheat

◦ 1925-1928 prices rose steadily◦ Exports expanded to Europe◦ New technology (i.e. trucks, mechanical harvesters)◦ New strains of wheat developed◦ Co-operatives were organized

◦ Businesses owned by farmers which loaned money to other farmers at low interest rates

Economy on the Upswingo Pulp and Paper

◦ Newsprint paper production became the 2nd largest industry◦ Americans needed Canadian pulpwood for their newspapers◦ Canada’s forests were being destroyed◦ Many workers left Canada to work in U.S. industries

o Hydroelectric Power◦ Electric power began to replace coal◦ More demand for electricity in homes with the invention of new

electrical appliances

Economy on the Upswingo Oil and Gas

◦ The 1920s were known as the “Oil Age” with the increased use of automobiles

◦ Oil and gas was also used for cooking and harvesting◦ The boom in the oil and gas industries had a devastating effect on

the Maritimes where coal was mined◦ Many had to move to central Canada to find work

o Mining◦ Many exciting mineral discoveries (i.e. copper, nickel, lead and zinc)◦ Rich mining deposits developed with American financing

The effect of the Boom Years: people were optimistic and tended to spend more money!