Canada's economy in the 50's-70's

1. Economics…
A BRIEF OVERVIEW OF THE 50’S – 70’S

2. What are some of Canada’s
“Primary” Industries?

3. - Much of the progress w/ Social Welfare systems came
as a result of a booming economy!
- Canada Pension Plan (CPP)
- Medicare
- Rising Wages & minimum wage debates
- Unemployment Insurance (EI)
- Also, we might not feel too threatened by immigrants
if we feel our jobs are secure. Therefore, immigration
policy becomes more expansive during the post-war
period.

4. Canada/US Economic Ties: “The 49th
State”?
- Canada needs a market for our resources, and in the 50’s-80’s
we relied very heavily on the USA
- ***Remember the causes of the Great Depression in
Canada? Hmmm…
- American companies invest in CDN resources = American
companies own much of Canadian industry
- US investment grows exponentially under “Uncle Louis”, Louis
St. Laurent

5. “Auto Pact” = Free Trade (1965)
- Free Trade = no taxes paid
on foreign goods
- Increases business, but
doesn’t protect local
industry (b/c of
competition)
- US Companies own 90% of
Canadian Auto Industry
- Canadians have jobs
(always good!) but profits
go to American companies
(meh)

6. Foreign Investment Review Agency (FIRA), 1973
- Concern over American influence in Canadian industry
(foreign companies)
- FIRA reviews all major foreign investments to determine
whether they serve Canada’s national interest
- = is it of net benefit to Canada?

7. Trudeau once
famously compared
living next to the USA
with “sleeping with
an elephant… one
can feel every twitch
and grunt”
What do you think he
meant by this?

8. Organization of Petroleum Exporting
Countries (OPEC)
- Mainly Middle Eastern countries (Saudi Arabia, UAE, Iraq, Iran, etc.,)
but also includes others (ex., Venezuela)
- B/c they control the oil, they can control the price
- Limit the amount of it, price goes up
- Overproduce, price goes down
- ME countries become aggravated w/ US foreign policy, so they exact
punishment by economy
- If oil prices go up, so does EVERYTHING else (transportation,
production)
- Lead to significant inflation in the 70’s (value of currency goes down)

9. But what about Alberta?
- Oil prices go up for all Canadians, so Albertan companies benefit
- But Trudeau controls the price of Albertan oil by creating the National
Energy Program
- Prices are forced to stay low
- Oil exports are taxed (= fewer people would buy it, b/c now they need
to pay an extra tax)
- Regionalism: Some regions are favoured more than others, which leads to
alienation (not feeling part of the group/nation
- Western Alienation: Inflation hit the West hard, but Trudeau’s policies
were aimed at benefiting central Canada (Ontario, Quebec) at the
expense of the West
- Many people in the West did not like Trudy for this

10. But what about Alberta?
- Oil prices go up for all Canadians, so Albertan companies benefit
- But Trudeau controls the price of Albertan oil by creating the National
Energy Program
- Prices are forced to stay low
- Oil exports are taxed (= fewer people would buy it, b/c now they need
to pay an extra tax)
- Regionalism: Some regions are favoured more than others, which leads to
alienation (not feeling part of the group/nation
- Western Alienation: Inflation hit the West hard, but Trudeau’s policies
were aimed at benefiting central Canada (Ontario, Quebec) at the
expense of the West
- Many people in the West did not like Trudy for this