The Promise and Perils of Prosperity

The Promise and Perils
of Prosperity
Key Terms
► Social
► Natural Resources
► Boom Towns
► Megaprojects
► Pollution
▸Branch Plants
▸Auto Pact
▸Labour Unions
The Change of Power
► Following
WWII Mackenzie King believed it would
be beneficial to the country if the provinces
continued to grant the same powers to the federal
government as in war time. King believed this
would allow for an easy transition to the
peacetime economy.
► The provinces of Quebec and Ontario objected
► The result was a shift in power, as the private
sector began to take over the Canadian economy.
The Age of Social Support
With a major boom in the
economy after the war,
Canadians began to take
measures to protect the
country against another
► Programs such as
education and health care
became important to
► Tax powers were shifted
away from the provinces
to the federal government.
Social Support - Equalization
► In
order to ensure that social support was
distributed equally, the government began
to implement a system in which the richer
provinces would support the poorer
provinces through larger tax contributions.
► This system of equalization is opposed
today by many of the richer provinces.
Natural Resources
The development of
natural resources
continued to be Canada’s
number one economic
success after the war.
► Boom Towns were
formed all over Canada.
These towns had the sole
purpose of exploiting the
land of its natural
► Today many of these
towns are in danger of
dying. Why?
Megaprojects - Building a Nation
As Canada began to expand and grow, so to did the nation’s need of
transportation and industry.
The megaprojects included such technological marvels as the St.
Lawrence Seaway, the Trans-Canada Highway, & C.D. Howe’s natural
gas pipeline.
The provinces launched a number of megaprojects of their own,
including hydroelectric dams, and floodways.
► The
result of much of the advancement in Canada
during the 50’s and 60’s was an increase in
► Toxic landfills became the building grounds of
many schools, and playgrounds.
► Many people were not aware of the extent of the
damage they were causing until the book “Silent
Spring” was published in 1962. The book looked at
the damage caused by pollution and its ultimate
effects on the environment. Pollution
Branch Plants The American Influence
After the war the Canadian government looked south in
hopes of finding a strong trading partner.
In order to maintain an equal playing field between
American and Canadian businesses, both governments
maintained a now somewhat relaxed system of tariffs.
In order to avoid tariffs the American businesses began to
open branch plants within Canada (especially in Southern
Ontario). These plants allowed the companies to produced
their product tariff free. By the mid 1950’s American
companies were in control of half the manufacturing in
Economic Nationalism
Economic Nationalism was a
pro-Canadian response by
those who believed American
influence had grown too great
in the Canadian economy.
Walter Gordon championed
the cause of the Canadian
businessman’s fear, as he set
out to repel the American’s
power over the economy.
The Auto Pact
The Auto Pact was an
agreement signed between the
Canadian and American
governments by allowing for
some free trade with respect to
Many jobs were created as a
result of the Auto Pact, as more
and more automobiles were
shipped from Canada to the U.S.
General Motors in Oshawa is a
prime example of the effects of
this pact.
Labour Unions
► With
the end of the war there came a
renewed energy within the labour
► Unions fought hard as representatives of
their workers to improve their situations.
► The union efforts resulted in an overall
increase in pay throughout the workforce
and better overall working conditions.
Let’s Think About It
Beneficial 10
Rate each of the ideas on a scale of
1 to 10 - 1 being too costly to 10
being extremely beneficial to Canada.
Too Costly 1
Social Megaprojects Branch Economic
Plants Nationalism