Canadian Economy Post WW1.ppt

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					Canadian Economy Post
            Improving Economy
   Beginning of 1920s – Depression (Effects
    of WW1 Debt)

   Mid 1920s – Recovery
       Wheat was important export
       Huge growth in Natural Resources
         Paper/Pulp Mills,
         mining, forestry,

         hydro stations
              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)
         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 USA…they did not have to pay taxes to
             “Import” products…because these products were
             produced in Canada! (eg. Car companies – General
             Motors, Ford, Chrysler replaced all Canadian Car
             makers…and did not pay tax in Canada)
            USA / Canada cont’d
   Canadians happy  with USA investments…
       Long term consequences…”ahh who cares”…nobody
        thought of this

   Canada economy based on Primary Industries
    (harvest raw materials…logging, mining, etc)
       Raw materials
   USA used Raw Materials to make new products
    (Secondary Industries)
         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?
        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
       Urbanization of Canada
   Growing economy & manufacturing sector
    in Canada => more people move to city
    for jobs
   ALSO…farming & 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)
       Problems that occurred..
   Slums (homeless/poor people
   Pollution (from factories)

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