Canada in the 1920’s
An Uneasy Adjustment
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November 1918- Canadians celebrated end of the first world war
Soldiers returned to few jobs and low wages
Inflation made it more difficult
Workers demanded more money
Rise of Communism
• Many people were upset with the huge gap between the rich and
the poor
• Bolsheviks in Russia established communism in 1917
• Bolsheviks encouraged workers around the world to join the
revolution- seen as a working class revolution rather than a
revolution just within Russia
• Communism never gained support in Canada but some of its ideas
helped inspire improved working conditions in Canada
Workers Respond
• Numerous strikes across Canada demanding better working
conditions, higher wages, and the right to join Unions
• British Empire Steel Corporation- tried to save costs by reducing
wages- workers reduced output and went on strike
• March 1919- Union leaders from western Canada founded One Big
Union (OBU) which would represent all Canadian workers- goal to
gain more control of industry and government through peaceful
means (general strike or walkout)
Canada’s Changing Economy
• 1920’s started in economic depression
• Mid 1920’s- economy started to improve- wheat exports, growth in
natural resources and manufacturing, forest industry, mining
industry, hydro-electric power, etc.
• American companies invested in pulp and paper mills, minespaper and metals exported to the USA
American Ownership of Canadian Businesses
• American investors set up branch plants
• Cars manufactured in Canada would not be penalized with tariffs
if sold in Canada
• General Motors, Chrysler, Ford took over the auto industry in
Canada
• American companies owned half of Canada’s oil business,
machinery, chemicals, rubber, and electrical companies.
• American investment pleased Canadians because it created jobs
(mostly primary industries) but it created more jobs in the USA
when these raw materials were processed or manufactured
(secondary industries)
Bootlegging
• Prohibition in Canada (approx. 1916-1921 depending on the
province)
• 1920’s- most provinces decided to regulate the sale of alcohol
rather than ban it
• USA- prohibition continued until 1933
• Rum-running- illegal smuggling of alcohol into the USA for profitvery dangerous but extremely profitable
Activities
• 1. read pp. 64-65 “Winnipeg General Strike”
• In a short paragraph answer, write a letter to the editor of a
newspaper to explain why you think the Winnipeg strikers were, or
were not, justified in their actions. (5 marks)
• 2. Do Practice Questions #1-2 p.66