Canadian Economy Post WW1

1
Canadian Economy Post WW1

• 1920s

2
Improving Economy

• Beginning of 1920s Depression (Effects of WW1
  Debt)
• Mid 1920s Recovery
• Wheat was important export
• Huge growth in Natural Resources exploitation
• Paper/Pulp Mills,
• mining, forestry,
• hydro stations

3
Trading Improves

• Pre-WW1
• Traded mainly with Britain
• Post WW1
• Britain In debt
• USA New World Economic Leader
• USA investment in Canada INCREASED
• Trade with USA INCREASED (eg. 75 of newsprint
  produced exported to USA)

4
USA Canada Relations

• Instead of lend money to Canada (like Britain
  did)USA investors setup Branch Plants in Canada
• Branch Plant Businesses owned Controlled by
  USA companies, but operated in Canada (and
  provided jobs for Canadians)
• Benefit for USAthey did not have to pay taxes to
  Import productsbecause these products were
  produced in Canada! (eg. Car companies General
  Motors, Ford, Chrysler replaced all Canadian Car
  makersand did not pay tax in Canada)

5
USA / Canada contd

• Canadians happy ? with USA investments
• Long term consequencesahh who caresnobody
  thought of this
• Canada economy based on Primary Industries
  (harvest raw materialslogging, mining, etc)
• Raw materials
• USA used Raw Materials to make new products
  (Secondary Industries)

6
Primary Secondary

• Primary Industry extract Raw materials (eg.
  Mining of lead, zinc, copper, metals)\
• Secondary Industry use raw materials make new
  products (eg. Use metals from mining to make
  cars)
• Which is more profitable ?
• Why?

7
One Manufactured Product

• Canada exported 1 manufactured (processed)
  product to USA Post WW1
• ILLEGAL ALCOHOL (Bootlegging to USA)
• (Prohibition NO ALCOHOL SOLD)
• Prohibition took place in both Canada USA
  during WW1
• Canada Prohibition ended in 1920
• USA Prohibition ended in 1933

8
Urbanization of Canada

• Growing economy manufacturing sector in Canada
  gt more people move to city for jobs
• ALSOfarming technology less labour workers
  for farming (because of machinery)less people
  needed in rural farm area
• Modern Canadian cities formed this time
  (Vancouver, Toronto, Ottawa, Montreal)

9
Problems that occurred..

• Slums (homeless/poor people concentrated)
• Pollution (from factories)