The National Policy

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The National Policy
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• The National policy consisted of three parts
• Tariffs, Transcontinental railways, and
  settlement of the west
• The purpose of tariffs was to protect the
  manufacturing industries in the colony.

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Protective Tariffs

• Protective tariffs charged a 40 per cent duty on
  imports.
• They were applied to goods that were also
  produced in the colony.
• The theory is If you charge more money to
  companies for importing foreign goods, they will
  be more likely to purchase locally.
• The Local businesses were protected.

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• Another development from the National policy was
  the need for the economy to expand in the
  manufacturing industry
• The only way they could do this and compete with
  the U.S was to create a transcontinental
  railroad.

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• It was feared that the West would be taken over
  by the U.S unless it was settled.
• The railroad increased settlement drastically.
• Communities could now be connected to the large
  growing markets of central Canada.

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Heartland

• Canadas heartland is and has always been located
  in central Canada.
• By 1901, over half of the manufacturing was
  located in Ontario and a third in Quebec.
• Tariff protection allowed for investment with
  very little risk and competition.

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Hinterland

• With Central Canada being the heartland, The West
  and the Maritimes were the hinterland.
• Halifax would be the port of call for the country
  as goods would move into and out of Canada.

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Impact on the Maritimes

• Initially the railway brought great investment in
  the Maritimes.
• All along the railway industrial centres formed.
• Truro, New Glasgow, Amherst and Sydney had large
  factories that produced everything from iron and
  steel to textiles and pianos.
• Nova scotias coal resources also suggested that
  its economy would be on the rise.

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• Maritime prosperity did not last.
• The larger firms in central Canada eventually
  bought out companies in the Maritimes, especially
  those in the Banking sector.
• These firms only thought about profits and did
  not care about community development in the
  Maritimes.
• Capital was moved back to the heartland.

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• To make up for this decline Nova Scotia focused
  mainly on Coal production that was needed to fuel
  the growing heartland.
• The merchants in central Canada pressured the
  government to end the protection tariffs on coal
  so they could use cheaper imports from the U.S.
• The government agreed which had a disastrous
  effect on the Nova Scotia economy

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• Between 1881 and 1931, the maritimes suffered a
  steady net migration.
• 500000 people left Nova Scotia for New England

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Impact on the West

• Like the Maritimes, the prairie communities did
  not develop into industrial centres like Toronto
  and Montreal.
• They were too for away from large markets.
• The immigration to the west also did not happen
  as many people went to the us where they were
  giving land away very cheaply.

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Industrialization

• Working conditions in the factories were harsh.
• People worked long days of 12 hours or more.
• Failure to meet these demands meant loss of wages
  and even physical punishment. Disease and
  workplace accidents were common.

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Standard of Living

• Times were very difficult for families.
• While work opportunities for women were very
  limited, if a young couple good both find jobs
  they could earn a modest living.
• When women left work to have children, they lost
  their jobs and the family would plunge into
  poverty.

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• In Urban centres housing was in great demand
  which led to increased rents.
• Many times families would share dwellings.
• In most of the poor dwellings there was no
  electricity, sewers, or running water.
• Malnutrition and disease affected many people and
  there was a high infant mortality and death rate.

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The Social Response to Industrialization

• Eventually people realized that not everyone was
  benefiting from industrialization.
• Alcoholism, child abuse, and poverty were the
  main issues facing the poor and middle classes.
• This created a wave of social spending and
  iniatives.

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• Prohibition was enacted to stop alcoholism,
  prostitution, and child abuse.
• Improving healthcare was a new priority. School
  vacination and nutrition programes were created
• Public sanitation
• Sunday was made the Lords day and no one
  worked.

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Workers Response

• Workers also began to fight for better
  conditions.
• They wanted a share of profits
• Higher wages, shorter hours and better working
  conditions
• They began collective bargaining and forming
  unions. Strikes were common.
• This began to form the basis of Canadas sense of
  social responsibility.