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

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

- 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.

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

“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)

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?

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?

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)

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