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1500
First Nations
The First Nation's economy was based on the idea of survival.
To ensure their subsistence (basic needs to ensure survival) they relied on each other to trade resources. Aboriginals do not trade to make a profit, they trade so they can survive. Trade was considered essential to building and maintaining relationships between nations. Trade was a way to pay war tributes, formalize meetings between chiefs and help peace negotiations. -
1500
Trade between Europeans and First Nations
The Barter system was used for the trading of goods. Europeans traded metal tools, beads, etc. for furs from aboriginals. Beaver pelts are of much higher quality than what is in Europe. During the summer, the sedentary and nomadic Amerindian groups met up with one another to trade, swap or exchange. The Algonquians exchanged their hunting surplus for the Iroquoians agricultural surplus. -
1500
NA’s role in the European economic system
Merchants start building trading posts in the colony. They demand a monopoly as they are looking to take over the fur trade in New France. -
1500
Slash-and-burn agriculture
The Iroquois' practice slash-and-burn agriculture.By burning wood, it makes the land more fertile (nutrients get into the soil). Therefore they cut the wood, burn it, it then mixes into the soil and they start their agriculture. -
1500
The fisheries
Christians didn't eat meat on Fridays and the Catholic church band meet for about 5 months, therefore, fish was in great demand in Europe. The French fishermen would come get the fish and used 2 preservation methods, either salted it or dried it, and then took it back to Europe. These fishermen soon came in contact with the Amerindians and began trading with them. -
Period: 1500 to
First Occupants
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Alliances and Rivalries
The fur trade was built on the collaboration between the French and Native peoples. Not only did they trade goods and furs but also information and military assistance. Iroquois' were enemies of the Algonquins. English had supplied arms and goods to Iroquois Confederacy, whose aim was to destroy the Huron, who were French allies. -
Triangular Trade
Ressources are sent to France to be processed into manufactured goods and sold back to the colony. New France sends fur, wood, and fish to France and Antilles sends sugar, rum, molasses and tobacco to France. France sends the manufactured goods back to New France as well as the manufactured goods back to the Antilles. The Antilles sends rum, sugar, coffee, and molasses to New France and New France sends fur, wood, and fish. This is called the triangular trade. All profit stays in France. -
Period: to
French Regime
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Company of 100 associates
From 1627-1663, the company of 100 associates controlled the fur trade. They were an association of 100 shareholders that invested Start-up capital. Each shareholder received a share of the profits from the fur trade. In exchange, the company was required to populate and manage the territory. However, because of the war with Britain, the company suffered heavy financial losses and was unable to settle the territory. Therefore, the King of France takes back control. -
The Hudson's Bay Company
Mid-17th century, Europeans had still not explored the territories northwest of the Great Lakes. In 1659, two coureur de bois, Groseillier & Radisson, went to that area to trade with a group of Aboriginals they had come to know well and brought back high-quality furs. France was not interested in financing a commercial expedition to Hudson Bay. Therefore, they went to the English Crown who funded a maritime expedition in 1668, later creating the Hudson’s Bay Company in 1670. -
The King takes over
The King takes over the fur trade in 1663. The French state wanted to create a market in New France where it could sell it finished products and exploit the colony’s resources. This process is called mercantilism. Resources from New France are exported to France. France collects and transforms the resources into final products, sells them back to New France and the profit stays in France. For example, furs sent to France, they make a nice beaver hat and sells it to the people in New France. -
British Takeover
In 1760 the British Takeover. The 13 Colonies, although small in territory, had a larger population. They were able to diversify their economy (ex: tobacco & cotton). Initially, Fur Trade continues. The Northwest company was created in 1783 to compete with the HBC. Fur demand declines, therefore, Northwest company merges with HBC in 1823. -
Protectionism (preferential treatment)
From 1760-1840, the colony was under the protectionist policy, they were able to trade exclusively will the mother country. Rich Merchants leave and go back to France opening up opportunities for the British merchants coming in or some "Canadiens" who stayed. -
Period: to
British Rule
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Napoleon comes to power in France
In 1806, Napoleon sets up a Naval Blockade around Britain (blocks route to mainland Europe). British no longer have access to wood, therefore they turn to British North America for resources but were declined of the fur trade. Timber now becomes the main economic resource. -
Timber
First Bank of British North America was established, Bank of Montreal. It allowed access to credits to borrow and get a loan to start a business. New Jobs opened up such as lumberjacks, sawmills, and shipyards. This opens up new territories and therefore the need for better transportation (new canals, railroads and the first steamships). -
The end of Great Britain’s protectionism policy
In 1840, Great Britain abandoned its protectionist policies and adopted free trade. This affected the colonies as their economy depended on exports to Great Britain. The colonies were to find new markets and therefore turned to the United States and signed the Reciprocity Treaty in 1854. It was a 10 year deal with the USA that allowed British North America access to duty/ tariff-free. In 1866, the treaty is not renewed and the United Canada had to find new markets for its products once again. -
First Phase of Industrialization
The First Phase was from 1850 to 1896. Capital($) financing new industries comes from British sources. Craftsmen take too long and are too costly. Factories and assembly lines are more efficient/ faster but it is more dangerous and “boring” work (repetition). Unions were looked down upon and it took a while for working conditions to improve. First industries were powered by coal/ steam engines. Food, leather, shoes & textiles were produced and sold in interior markets (local consumption). -
Economic crisis
In 1873, the Canadian market was flooded with US goods. Canadian manufacturers were unable to compete with the American market.
In 1879, Prime Minister John A Macdonald tried to rectify the situation by proposing a policy of industrial development: The National Policy. -
National policy
In 1879, Priminister John A Macdonald tried to rectify the economic crisis of 1873 by proposing his National policy. Canada will impose custom tariffs on imported manufactured goods. For Canadian consumers, local goods will cost less, therefore, more people will buy “made in Canada”. This will stimulate the Canadian economy. The 3 main objectives were to increase in protectionist tariff expand the railway network and to stimulate immigration. -
Second Phase of Industrialization
The Second Phase of Industrialization was from 1896 to 1929. Several favourable conditions helped this phase: Québec has many natural resources, many rivers to help with the making of hydroelectricity as well as an abundant workforce. New industries will flourish such as hydroelectricity, aluminium, minerals and pulp and paper. The main source of energy came from hydroelectricity. Capital came from the US and products were sold in exterior markets (exports to the US). -
The Great Depression
In the 1920s, the Canadian and Québec economies experienced a period of prosperity. After a while, surpluses accumulated in warehouses. Companies started to produce less and proceeded to fire workers. This caused the New York Stock Market to crash in 1929. This economic recession will be felt throughout the world and lasted for 10 years. Banks and factories closed their doors, many bankruptcies occurred, the number of unemployed workers grew and grew and 25% of the population was out of work. -
Baby Boom
After the war, Québec’s population increased dramatically. This was a period known as the baby boom. Salaries increased, women stayed on the workforce, it is the beginning of mass consumption, the demand for natural resources was increasing. The mining industry also flourished in Québec. -
Rural electrification
Agriculture drastically changes in 1945. The Duplessis government will create a law to promote rural electrification. The use of electricity in the farms will increase agricultural production. -
Quiet Revolution
Québec experienced major political, social, cultural and economic changes. This is known as the Quiet Revolution. In 1960, the state took charge of the management of certain social programs, including education and health, and thus became a welfare state (when the government takes care of everything). The state also invested considerable sums in the construction of new institutions and public infrastructures. -
Nationalization of electricity
In 1962, the government of Québec bought out most of the private electricity companies and integrated them into Hydro-Québec in order to nationalize the production and distribution of electricity.
Their goals were to manage the development of the territory’s natural resources and encouraged Francophone investors and entrepreneurs to create thriving businesses. -
The effects of State interventions on the territory and on society
To attract new companies industrial parks were created. In the city, the building of houses was expanding. With the urban sprawl and the development of the suburbs new roads had to be built. It is because of all this construction, the government of Québec instated a law to protect farmland in 1978. -
The economy since the 1980s
In 1973, and again in 1979, the Organization of Petroleum Exporting Countries (OPEC) decided to curb oil production and raise prices
caused an economic slowdown in the Western world and an economic recession. -
CUSFTA
In response to the recessions and recoveries of the 1980s, some economist claimed that the Canadian market was not sufficiently large or competitive to sustain true economic growth. To enlarge markets the Canadian government wanted to increase trade with the United States (main economic partner). On January 1st, 1989, the Canada-United States Free Trade Agreement (CUSFTA) eliminated almost all customs duties between Canada and the United States. -
NAFTA
On January 1st, 1994, the treaty was renegotiated to include Mexico. It was renamed the North American Free Trade Agreement (NAFTA).
