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Sep 26, 1500
Early Economic Development
At the beginning of the 16th Century, the economy of Quebec was characterized by uneven regional development. Fish, fur, timber, ore, and other resources have all contributed to its economic development.
Before the French Regime, Europeans came to North America because of the fish. Catholics weren't allowed to eat fish on Fridays, so fish was in demand in France. While in North America, fishermen interacted with the Native people, sometimes peacefully and sometimes violently. -
Sep 26, 1500
The First Occupants' Barter System
The First Occupants did not have notions of property or ownership.
They used the barter system. This system was subjective, two parties would negotiate the value of each of their objects and trade them accordingly.
They would trade with their families and other tribes with whom they were allied.
The Amerindians travelled the territory using canoes and snowshoes.
The economic roles were divided based on gender. Men were hunters, women were farmers, and the elderly looked after the children. -
Period: Sep 26, 1500 to
Economy and Development
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French Regime Part 1
When the French Regime began, the main concern was the success of the fur trade. The French allied with the Amerindians, who knew the territory and would hunt for furs. The territory of New France continued to expand in search of fur. When the beaver population in one area was decimated, another territory would be founded. This method lead to New France having a large territory, but a very small population. -
French Regime Part 2
Aside from Quebec, trading posts like Trois-Rivières and Ville-Marie would also be founded over the next 40 years.
Since the French were allied with some of the Native groups (the Algonquins and the Hurons), they became involved with the Native conflicts. Natives also became involved in European conflicts through their affiliation with the French. -
Chartered Companies
The Company of 100 Associates and other chartered companies had a deal with the French government that allowed them to be the only groups in New France to trade fur. The French government would receive taxes from their trade. The chartered companies were also tasked with increasing the population of New France. The companies had no interest in developing the colony, they were focused on making money and they did not want to create competition for themselves by further populating New France. -
Mercantilism
France ran the economy of New France using the mercantilism system. New France would send their natural resources (fur) to France, where they would be transformed into finished products. Europe would sell these products and keep all of the gold. France eventually stopped using this system because it was a major disadvantage to New France's economy. Great Britain did not use this system, so the Thirteen Colonies' economy prospered from its diversity. New France's economy was focused only on fur. -
Triangular Trade
Jean Talon invented triangular trade, attempting to diversify Canada's economy. Raw materials were shipped from America to Europe. The Europeans would turn these resources into finished products and transport them to Africa in exchange for slaves and other raw materials.The products from Africa would then be sent to America. This attempt failed.
The demand for fur was still high and there weren't many skilled people in New France. The people only planted enough for their family to live off of. -
British Regime Part 1
At the beginning of the British Regime, the economy was still based on fur trade. The North-West Company was created in 1783 and then merged with the Hudson's Bay Company in 1821. By the end of the 19th Century, the fur trade declined.
After Napoleon made a blockade in 1806 to prevent Great Britain from acquiring timber to make their boats, timber was in demand. Great Britain got its timber from Canada. Transportation was thus improved; canals and railroads were built. -
British Regime Part 2
New jobs were also created, such as lumberjacks. Great Britain was able to build ships with Canadian timber. The timber industry also affected the territory. New regions were developed (Mauricie, Outaouais, and Laurentides).
The Bank of Montreal was created in in 1817 to allow people to invest and obtain credit. -
Reciprocity Treaty
Britain ends its preferential trade agreement with Canada. When this agreement ended, the price of Canadian products went up in Great Britain, so no one wanted to buy them. Canada needed a new trade partner.
The United States and Canada sign the Reciprocity treaty; customs ceased and favoured the economy of Canada. This agreement was further advantageous for Canada because the U.S. was a much larger market. The United States realized this and did not renew the agreement in 1864. -
The National Policy
In 1878, John A. MacDonald created the National Policy. His goal was to stimulate the economy. He implemented these three measures: Increased custom duties, to promote and protect Canadian industries by ensuring the purchase of Canadian products. Build the Canadian Pacific Railway to unite Canada, thus increasing trade. Encourage immigration, particularly to Western Canada. With a larger population, Canada would have a larger market and it would discourage an American invasion. -
First Phase of Industrialization
Factories replaced skilled craftsmen who worked slowly and used costly methods. Workers would work in assembly lines in factories. This work was efficient, but also boring and dangerous. These first industries were powered by coal, which would produce steam when it was heated that powered steam engines. New industries were created in Quebec, notably dairy. The first phase of industrialization was defined by the production of finished products, the rural exodus, and horrible working conditions. -
Population Changes
The population increased from 1871 to 1901 by 30-49%. The birth rate in Quebec is still very high and the farms are still crowded, prompting emigration. People moved to the cities, where unskilled workers were in demand. Emigration from Quebec was favoured by the better jobs in the United States and the rest of Canada. Living conditions were horrible: no running water, poor sanitation, diseases, malnourishment, etc. There was also a high infant mortality rate and tons of pollution in the cities. -
Second Phase of Industrilalization
Unlike the first phase of industrialization, the second phase was defined by the extraction of raw materials. New regions, Abitibi-Témiscamingue, Saguenay-Lac-Saint-Jean, Mauricie, etc, were developed to serve the exploitation of natural ressources. The cities continued to develop: hospitals, schools, aqueducts, and sewers were built. The suburbs developed as well. This phase ended around 1915. -
The Great Depression, Part 1
The Great Depression was caused by the stock market crash of 1929. This occurred because people were investing in companies with money they had borrowed from the bank. When the company they had invested in went bankrupt, they couldn't pay back the money they had borrowed from the bank. When someone else wanted to withdraw money from their account, the bank couldn't give it to them; the bank had lent it to someone else, who had never paid it back. Banks were shutting down at alarming rates. -
The Great Depression, Part 2
Also, people would see the stocks go down, so they would all pull out their shares at once, causing the stocks to drop to 0 or less. Many people were ruined, with some even committing suicide. This day is known as Black Thursday. The economic boost from the First World War and the subsequent "Roaring Twenties", a decade of economic prosperity and big spending, came to an end. There were massive lay-offs and families brought in barely any money. -
Government Solutions to the Great Depression Part 1
The Great Depression was so overwhelmingly terrible, that the government had to step in. They implemented these projects: Public works project to boost the economy. The Government would create a public works project to allow men to work and win money for their families. Work camps were created for young, usually single men. Workers received room and board in exchange for physical labour. They also received very little money. -
Government Solutions to the Great Depression, Part 2
Cont'd
Direct aid was created. Coupons/food stamps could be traded for food, wood, and clothing. Farming was encouraged. People could farm and eat their own produce, surviving on their own land. -
World War II
During The Great Depression, everyone was afraid of spending, since they had very little money. However, spending promotes businesses and employment. The war forced Canadians to spend and manufacture. Canadian factories manufactured army uniforms and weapons. The women worked in the factories while men were at war. World War II got us out of the Great Depression, stimulated the economy, and saw women returning to the workplace. Women working also created a double income for their families. -
Post-War
After World War II, the Canadian economy is flourishing. Immigration is high, many Europeans whose houses or businesses were destroyed during the war immigrate to Canada. -
Worker's Unions
Factory workers worked in horrible and dangerous conditions. Also, they had very little rights. They were seen as expendable by the factory owners. The workers realized eventually that by banding together, the owners and bosses would have to create laws that protected their rights. Unions were created. They demanded child labour laws, better pay, better living conditions, shorter work hours, etc. Workers went on strikes to put pressure on their employers. Owners hated unions, they lost money. -
The Quiet Revolution, Part 2
The MEQ was created and public school was free for students until the age of 16. Essentially, education and other sectors were now controlled by the government, not the Church. Quebec is becoming more modern, with more intellectuals and trained specialists.Union membership has doubled and women are encouraged to attend university and be apart of the workplace. The birth control pill has allowed women to control when they want to have children, so they can focus on their careers. -
The Quiet Revolution
Maurice Duplessis, the premier of Quebec, maintained a period of traditionalism in Quebec post-war. The rest of the world was developing technologically, but Duplessis wanted to slow this progression. He encouraged farming. The Quiet Revolution began with the election of Jean Lesage of the Liberal Party. It was a period of social, political, and economic reform. Government intervention increased.
The government purchased Hydro-Quebec, built the Montreal Metro, and the Trans-Canada expanded. -
Quiet Revolution Part 3
Some francophones believed they weren't getting paid as much as anglophones after the Quiet Revolution and that they didn't have the same job opportunities.
The James Bay hydroelectric dam was created in the 1970s, which was controversial, since it involved flooding Native land.
There was also a small recession in the 1970s and 1980s following an oil crisis. Many companies became privatized. -
Recent Trade Agreements
Canada entered into trade agreements with the United States (Free Trade agreement of 1988) and Mexico (NAFTA). Mexico and Canada profit the most from their trade agreement with the United States, since the U.S. population is ten times larger than the population of Canada.
