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1500
First occupants (barter system)
The Algonquians traded hides, pelts and meat. The Iroquois traded their agricultural surplus. Their trade routes were the Ottawa river, the St Lawrence river and Tadoussac. These were good trading routes because the transportation was easy (canoes). Later on, the natives made first contact with the french. They traded their furs for metal objects (pots, knives) -
The destruction of Huronia
In the early 17th century the Hurons became middlemen for the French in helping them get access to furs for trade. This relationship created an economic imbalance between the Hurons and the other Iroquois tribes. As a result Huronia was destroyed and the French expanded territorially to trade directly with the Algonquians. This lead to the creation of the company system -
Mercantilist Policies
Mercantilism: a nations prosperity that comes by accumulating gold and silver. How did France get gold and silver?
1) They get raw materials to produce good from their colonies
2) They export the goods (sell them to other countries)
3) Receive gold and silver in return -
Jean Talon's attempt to diversify the colony
Economy of new France was not good... Talons attempts:
1) Diversify agriculture (cereals, vegetables, hemp)
2) Domestic animals for breeding (cows, horses sheep)
3) Naval shipyard near Quebec (for ships to export their surplus)
4) Hops for beer
5) Minerals (Iron ore (st maurice iron works), copper, coal)
6) More diverse economy (wig making, crafts) -
Growth of Triangular Trade
France decides it can get even richer with triangular trade. They take resources from their colonies and sell back the manufactured goods.
Three principals of triangular trade:
1) Boats never leave empty handed
2) Boats from new France and West Indies send resources to France
3) Boats leave France with manufactured goods -
The Conquest
The change in control of the colony to Great Britain shifted economic power from French Canadian business people to new English arrivals. This foreign control of Quebecs major industries continued until the Quiet revolution -
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Napoleons Continental Embargo
Napoleon imposes a continental embargo on Great Britain. Because of this they cant trade with Europe. So they turn to Canada for wood. This is vert lucrative for Canada. -
Timber Trade replaces fur trade
Fur is no longer a big economic factor. Canada resorts to its main resource: timber. The timber trade was very lucrative for Canada. It also creates many jobs: lumberjacks, sawyers, log drivers. Lumber trade leads to the development of new regions, important ports and new villages -
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British Protectionism
Protectionism: A system to protect the economy from foreign competition. The corn laws guarantee preferential tariffs to the colony (grain). This is another way to make more money and boost the economy. -
The First Bank
The Bank of Montreal was founded as a result of the rapid growth in the lumber trade. For the first time there was a bank that could do business directly with the colony. -
The Decline of the Fur Trade and the Hudson's Bay Company
The British Government introduced competition in the fur trade by granting licenses to both the Hudson's Bay Company and the Northwest Company. In 1821 the companies merged into the Hudson's Bay Company due to the declining fur trade economy. -
First Railroads
Railroads were critical to economic development. They let goods move in winter for the first time. Factories and towns clustered along rail lines, increasing economic development. -
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First phase of industrialization
The first phase was basic industrialization:
1) manufacturers replaced artisans
2) division of labour
3) increased productivity
Lots of industries changed like food, shoes and leather, mining, lumber and dairy
All these industries were located near the railway line. -
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Reciprocity Treaty
Great Britain adopts free trade and abolishes corn laws. Canada products now cost more in Great Britain. So they need to find a new Trading partner... the USA. This leads to the reciprocity treaty: raw materials can be traded without tariffs. -
Confederation
The confederation is the creation of Canada.
What lead to the confederation?
1) end of great Britain protectionism
2) end of reciprocity treaty
This effects a lot of jobs that were selling to the USA like sawmills and farmers -
Unions are legalized
Industrialization leads to urbanization. immigrants and farmers move to cities therefore working class neighbourhoods appear but they are overpopulated, unsanitary, no running water, now sewage system and epidemics .
The working conditions are awful: low pay, long hours, children work, not job security. Then unions are legalized. This fixes many abuses -
National Policy
After the confederation Canada had an economic crisis: cheap USA goods were hurting Canadian producers.
So John and MacDonald passes the National policy
1) increase in custom tariffs on manufactured goods
2) Money from tariffs will help expand the railway network
3) This stimulated immigration -
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Second phase of industrialization
Quebec has natural resources, rivers fir electricity and a large work force. new industries are created: hydroelectricity, aluminum, minerals, pulp and paper. -
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World War One
The economy focuses on war goods, guns, uniforms and bombs. There is prosperity. -
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The Great Depression
Surpluses accumulate -> Factories slow down -> workers are fired -> stock market crashes. The government then intervenes: Public works, direct aid, Bank of Canada, office of agricultural credit. The church helps by making soup kitchens, giving milk to children and creating the YMCA -
World War II ends the Great Depression
The Great Depression ended due to the need to supply the Allies with food and military equipment. Canadas factories turned toward the war effort, and unemployment dropped. For the first time, woman entered the work force. -
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The Post - WWI Boom
Woman stay in the workforce and a new middle class is born. For the first time mass consumption of consumer good begins to drive the economy; cars, tvs, clothes etc... -
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The Quiet Revolution
The Quiet revolution saw the creation of the welfare state, particularly with the introduction of universal health care. The government made massive investments in the public education system and provincial infrastructure. -
The creation of Hydro-Quebec
The creation of Hydro-Quebec was a reaction against high electricity costs, poor rural electrification and a lack of francophones in management positions in electricity companies. -
The creation of CUSFTA
The CUSFTA was a giant change in Canadas approach to trading with the USA. Canadian companies would have access to the US market, but were subject to US competition domestically. AN election was fought bitterly over free trade. This lead to NAFTA
