Learning Outcome:
Analyze the relationship between the National
Policy and the industrialization of Canada

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How the National Policy helped change our country
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How it helped move our country from a less developed to a more developed nation
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How it helped grow our nation’s economy
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How it promoted industry (mass production of goods, trade, infrastructure, etc.)

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: in 1871, political corruption in the awarding of contracts to build the transcontinental railway.
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: between 1874 and 1878
Canadian economy suffers from the effects of a worldwide depression with high unemployment, widespread business failure, and loss of confidence in financial institutions.

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With British Columbia being lured by the
Americans to join their union, and the Red
River Colony in the West trading exclusively with the Americans, and the
Transcontinental railway not completed by the Liberal government, MacDonald needed to step in with a bold maneuver.

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The National Policy consisted of three initiatives:
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Duties of over 40% levied on products coming into the country (imported goods)
Secondary manufacturing industries developed in the new
Canadian Heartland of Ontario and Quebec
Protective tariffs : taxes imposed on imported products to encourage people to buy domestic products
These tariffs allowed struggling Canadian businesses to get back on their feet
The east and west would now provide a supply base for a strong central manufacturing base in central Canada.

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The new supply base of the east and west allowed the central Canadian firms to grow stronger, with money and people moving in to build up the growing markets.
This had the conversely negative effect of making the east and west suffer an economic decline, the well being of these areas taking a back seat to the development of central Canada.
Industrialization took hold of Central Canada creating harsh working environments, exploitation of women and children by industries, sweatshops piecework , and lack of a social safety net.
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: places in which people labor for long hours under harsh working conditions, for little wages.
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: government programs and services that provide aid for citizens in need.
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: work that is paid on the basis of the amount done, not on the time it takes

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Canada underwent a great transformation during the industrial revolution
The standard of living decreased for many in order for the new manufacturing industries to thrive
In the cities many working class people lived in slums, sometimes sharing houses with other families
There was a lack of running water, sewers, and electricity.
These people were also malnourished and babies suffered from high infant mortality rates.

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The middle class responded to symptoms of the new age such as poverty, alcoholism, and child abuse
The Progressive movement took initiatives to help the poor, other groups targeted the problems of prostitution, gambling, and the consumption of alcohol
Others helped to improve public health system such as new hospitals and clinics
New sewer and water treatment plants were built
Subsidized housing helped replace crowded houses and eliminate slums

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There were two ways for workers in this day and age to stand up to the industrial factory owners:
Strikes and collective demands for shorter working hours, and more pay
Others would organize new labor associations and unions , such as the Knights of Labor which expanded into Canada in the 1880’s
These responses from the middle class and the workers would lead to Canadian citizens strong sense of social responsibility

Review
Cause and Effects
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Threat of American annexation of the West
Too much reliance on American business (competition)
Desire for workers rights
American aggressiveness
Railway construction
Lack of social safety net
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Poor working and living conditions
Building of the CPR and exploitation of Chinese workers
Industrialization of Nova Scotia
A central Canadian heartland and western and eastern hinterland
Creation of labor unions
Canadian sovereignty over the west
Introduction of protective tariffs
Pacific Scandal (exposure of political corruption)