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1500
First Occupants
- To ensure their subsistence, they relied on each other to trade resources (aboriginals didn't trade to make profit, they trade so they can survive).
- Trade was considered essential to building and maintaining relationships between different nations.
- Trade was a way to pay war tributes, formalize meetings between chiefs and help peace negotiations.
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1500
First Nation's Division of Labour
WOMEN:
-Alg: Gather, hunt small game, Care/Education of children, Crafts/ clothing, Cook
-Iro: Plant, harvesting crops, Gather, hunt small game, Care/Education of children, Crafts, clothing, Cooking
-Inuit: Gather, hunt small game, Care/Education of children, Crafts/ clothing, Cooking
MEN:
-Alg: Hunting/Fishing, Cut down trees/construction, War, Trade
-Iro: Construction (longhouses, fences), Clear land, Hunt/Fish, War, Trade
-Inuit: Hunt, fish, Construction (sleds, boots, canoes), Make weapons -
1500
European exploration
- European starts sailing West because Eastern land routes are too dangerous
- Hits North America, but thought it was Asia, started basic trading with some aboriginal groups along the coast
- Every summer european men would set up temporary camps on the shores to go fishing (they dried/salted the fish that they'd then take back to Europe).
- The trade system between Europeans and First Nations was called the Barter System.
- Europeans traded metal tools, beads, etc. for furs from aboriginals
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A trading post colony
In the late 16th century, various groups explored the territory and developed trading relationships with the First Nations, led to a trading post colony (pre 1627). Fur trade was the main economic activity in NF. This resource will also permit the expansion of the territory. But, in 1690s, the beaver economy was in crisis, the demand for beaver pelts decreased. Fur trading was too intense and the pelts piled up in warehouses in France. As a result, the King ordered a slowdown of the fur trade. -
Effects of the fur trade in the 1600's
- Caused a rivalry between France and Great Britain
- Aboriginals fight between themselves to see who would control the fur trade with the French.
- Amerindians stop using traditional tools, clothing and arms (dependent on European goods).
- Effected alliances between the French and Amerindians, several Amerindian nations will be extinct due to wars.
- Doesn't encourage settlement of the colony
- Increased the size of the territory (travel far to find new fur territories, territory expands)
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Attempts to diversify the economy throughout the French Regime
- Jean Talon attempted to diversify the economy of New France. He tried to make the colony economically independent through self-production. He wanted more agriculture, shipbuilding, ironworks, commerce and craft activities to be developed.
- He encouraged the inhabitants to diversify their agricultural production
- He increased number of seiagneuries = increase amount of land farmed
- He distributed weaving looms to homes (to make fabric)
- He encouraged the growing of linen and hemp
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Company of 100 associates
From 1627-1663, the company of 100 associates controlled the fur trade because they were granted a trade monopoly. In 1663, the King took over because the french state wanted to create a market in New France where it could sell it's finished products and exploit the colony’s resources (mercantilism). -
Hudson's Bay Company
During the mid-17th century, Europeans had still not explored the territories northwest of the Great Lakes. So, in 1659, 2 coureur de bois (Groseillier + Radisson) went to the area to trade with a group of Aboriginals. They brought back high-quality furs but France was not interested in financing a commercial expedition to Hudson Bay. They then went to the English Crown, who funded a maritime expedition to Hudson Bay in 1668 (creating the Hudson’s Bay Company in 1670). -
Mercantilism
Once the King took over trade in 1663, his goal was to create mercantilism (accumulate as much wealth as possible for the mother country through the exportation of resources).
- New France → exports ressources to it's mother country (France)
- France → collects/transforms the resources into final product, sells them back to NF (colony), profit stays in France
Example: Furs sent to France → they make a nice beaver hat and sells it to the people in New France, while keeping the profit in France -
British Takeover
In 1760, the British took over and started to rule. This was when the protectionism policy (preferential treatment) was introduced: Under protectionist policy the colony will trade exclusively with the mother country (1760-1840’s). Rich French merchants leave and go back to France opening up opportunities for the British merchants coming in or some “Canadiens” who stayed. -
The Northwest Company
In 1760, the British take over and start to rule. Initially, Fur Trade continued with the creation of Northwest company (1783) to compete with the Hudson's Bay Company. But then, fur demand declines, NC merges with HBC (1823). -
Timber
In the 1800's, there was a decline in fur trade so Timber became the main economic resource. Timber helps with the making of the first Bank in BNA → Bank of MTL (which allows access to credits to borrow and get a loan to start a new business). New Jobs were created: lumberjack, sawmills, shipyards. This opens up new territory (there was then a need for better transportation: new canals, railroads and the first steamships). -
Napoleon powers in France
Napoleon came to power in France (wants to take over the world). In 1806, he set up a Naval Blockade around Britain (blocks route to mainland Europe). British care cause they needed wood, they turn to BNA for resources. Then, there was a decline in fur trade, timber now becomes the main economic resource. There was a continental embargo: stop all trade w/ Britain & France. So, the Reciprocity Treaty was introduced (1854), BNA signs a 10 year deal with the USA and now had access duty/ Tariff free -
Agricultural diversification
Family farms were still in existence but many now looked to have a surplus or diversify their crops to sell on the market. Corn Laws encouraged this, cause people wanted to export their extra wheat. Diversified stuff: oats, barley, buckwheat. In 1830/40’s, dairy production rise, leads to transformation of QC Agriculture in 1900’s. -
Important acts of the mid 1800's
In 1846: Corn Laws (duties and tariffs on imported agricultural products, designed to favour domestic producers) were abolished. This stopped preferential treatment towards British cereal merchants (wheat farmers are now forced to compete).
In 1849: Navigation Act was abolished, meaning any merchant ship could now have access to British Ports -
First phase of Industrialization (1850-1896)
- Capital($) from British sources -Factories/assembly lines are more efficient, but more dangerous and “boring” work (doing the same thing over and over) -first industries powered by coal/steam engines -urbanization, railways created -Working class dealt with poor sanitation, diseases and were often malnourished = high death rate -To help workers, the federal government legalized unions in 1872. Unions demand: reduction working hours and days per week, increased salary, eliminate child labour.
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Economic Crisis of 1873
In 1873, Canada market was flooded with US goods. So, in 1879: Prime Minister John A Macdonald helps by implementing The National Policy. 3 objectives:
1) Increase in protectionist tariff (higher customs duties on goods manufactured elsewhere to protect Canadian industry)
2) The expansion of the railway network (help industrialization, facilitate transportation of immigrants)
3) Stimulate immigration (encourage settlement in West Canada, create new consumer market, increase the labour force) -
Second Phase of Industrialization (1896-1929)
-Favourable conditions helped this phase: Québec has many natural resources, rivers help w/ the making of hydroelectricity, abundant work force.
-New industries: Hydroelectricity, aluminium, minerals, pulp and paper
-Not only in the city: further regions also expand and become more industrialized
-Capital ($) comes from US
- 1920s: After a while, surpluses accumulated in warehouses, so companies started to produce less and proceeded to fire workers. caused the NY Stock Market to crash in 1929. -
The Great Depression (1929-1939)
The Great Depression put an end to the 2nd phase of industrialization. In 1929, New York Stock Market Crash will affect the economy of most of the countries of the modern world. Banks and factories closed their doors. Many bankruptcies occurred. The number of unemployed workers grew and grew. -
World War 2 (1939-1945)
-Allies relied on Canadian industries to supply them with foodstuffs and military equipment.
-With the declaration of war, the economic crisis (great depression) of the 1930s disappeared for good.
-Women started working in factories and goods were rationed.
-Thankfully, decline in the unemployment rate. -
State intervention during the Great Depression
Federal government (New Deal by Bennett):
-Increase in duties and tariffs (protect Canadian goods)
-Public works (roads, bridges, hospitals)
-Subsidies ($$$) to unemployed
-Subsidies to companies
-Work camps for bachelors
Church:
-Soup kitchens to feed poor
-Free milk for children
-YMCA (Young Men Christian Association), a place to sleep for the night
Provincial government (QC):
-Direct Aid (coupons for food)
-Law encourages to go back to the land
-Law reducing amount of working hours in a week -
Economic activities from 1945 to 1960
After war, QC population increased cause of baby boom, salaries increase, living/work conditions improved, women stayed on the work force, demand for natural resources was increasing, mining industry flourished in Québec. During this time period, the development of cities is on the rise (urban sprawl), suburbs are also being created. New automobile road network put into place. Agriculture changes 1945: use of electricity in the farms increases agricultural production. -
Public investments in the 1960s and 1970s
In 1960, state took charge of management of social programs (education & health), it became a welfare state (gov takes care of everything). The state creates new institutions & public infrastructures. 1962: the gov of QC bought out most of the private electricity companies & creates Hydro-Québec, to nationalize electricity. The goal was to manage the development of the territory’s natural resources. Throughout this time, agricultural industry is transformed, farms are less numerous, but larger. -
The Organization of Petroleum Exporting Countries (OPEC)
In 1973 & 1979: the Organization of Petroleum Exporting Countries (OPEC) decides to curb oil production and raise prices (caused economic slowdown in the Western world and an economic recession). 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. -
CUSFTA & NAFTA
On January 1st, 1989, the Canada-United States Free Trade Agreement (CUSFTA) came into effect. It eliminated almost all customs and duties between Canada and the United States. Later on, the treaty was renegotiated to include Mexico, which agreed to participate in the North American Free Trade Agreement (NAFTA). This came into effect on January 1st, 1994.
