We will describe some key social, economic, and political trends, events, and developments in Canada between 1945 and 1982, and explain how they affected

Grade 10 Canadian History: Since World War One, CHC2P

Canada 1945–1982

Learning GoalsWe will describe some key social, economic, and political trends, events, and developments in Canada between 1945 and 1982, and explain how they affected the lives of people in Canada.

Success CriteriaYou will describe some key trends and developments in the Canadian economy during this period, and assess how they affected the lives of people in Canada

Big QuestionHow did Canada’s economy develop

between 1945 and 1982?

Economic Issues in CanadaThe Maturation of the Canadian Economy

Economic Issues in CanadaAfter WWII Canadian consumption grew dramatically. Maybe it was because of the unadulterated happiness that followed the conclusion of the world’s greatest conflict. Whatever the reason, Canada (and North America in general), began consuming at a pace that had not been seen since the early 1920’s. Canadians were buying televisions, radios, kitchen appliances, automobiles, entertainment and other new products that hit the market. Fears of a post-war depression were quickly erased.

Economic Issues in CanadaBranch Plants

Seeing the booming Canadian economy, many American businesses wanted to get their piece of this pie. Businesses from the U.S.A. began to build factories inside of Canada to sell their product to the hungry Canadian markets. These American owned businesses were dubbed Branch Plants. Although all the money went to the ‘parent company’ in the U.S.A., they were manufacturing and selling their products inside Canada.


American companies did this in order to by-pass Canadian taxes and tariffs to save money. If they imported their products from the U.S. to Canada, they would have to pay major tariff fees and taxes to sell their foreign products on the Canadian market. This was a major problem because although it did create jobs for factory workers, almost all the upper level positions were filled by Americans. Along with this, most of the taxable profits were sent back to the ‘parent company’ in America, and taxed by the American government.


The Canadian government did not like this for obvious reasons. Millions of taxable dollars were being sent to the U.S., and these companies were also using this loop-hole to avoid being taxed by Canadian tariffs. Some Canadians thought this injection of American business was good for the Canadian economy; however many feared an American economic takeover. It was not until 1994 when the North American Free Trade Agreement (NAFTA) closed these loop-holes.

NAFTA Logo

Economic Issues in CanadaThe Auto Pact

In 1965 Prime Minister Lester B. Pearson and President Lyndon B. Johnson signed the Auto Pact or APTA. This agreement removed tariffs on cars, trucks, buses, tires, and automotive parts between the two countries. This greatly benefited large American car manufactures. In return, they promised the same automotive output and prices for the Canadian consumer.

Economic Issues in CanadaThe Auto Pact

This pact also put a new tariff on automobiles imported from Japan, Germany and Britain. Due to this pact, more automobile Branch Plants began to spring up across southern Ontario. Automobile and parts production quickly surpassed pulp and paper to become Canada's most important industry. This pact demonstrated how the American and Canadian economies were interconnected.

Economic Issues in CanadaThe Energy Crisis of the 1970’s

After WWII and into the 1960s the world petroleum market enjoyed a major boom. The consumption of oil was mainly driven by the explosion of the automobile market, and factories which needed oil to produce their goods. Although the global petroleum market was booming ,western countries were becoming more and more dependent on foreign oil sources…mostly in the Middle East.


In 1960 OPEC (Organization of the Petroleum Exporting Countries) was created as a petrol cartel to moderate and coordinate global oil prices between oil producing countries. The founding member countries were Iraq, Kuwait, Iran, Saudi Arabia and Venezuela. With the Western World’s support of Israel during the Yom Kippur War (mostly from America and the Netherlands) in 1973, OPEC retaliated by flexing its economic might.


As Israel was being resupplied by America and other western countries, OPEC decided to put an oil embargo on countries who supported Israel. By 1974 the prices of OPEC oil rose from $3 per barrel to $12. North American gas stations were running dry due to the rising price of foreign gas. North Americans were even buying Japanese cars in record numbers (because of their fuel efficiently) to survive this energy crisis.

1976 Honda Civic


Once again in 1979, the Western world endured another energy crisis due to events that occurred in the Middle East. On November 4th 1979, a massive demonstration in Tehran, Iran, toppled the American-backed Iranian Shah (king). During the oust of the Shah, the American embassy was taken over and 52 American diplomats were held hostage for 444 days. During this Iranian Revolution gas productivity drastically slowed down, and prices once again shot sky high.


The energy crisis got even worse in 1980 at the outbreak of the Iran-Iraq War. This war grinded oil production in Iran and Iraq to a halt. Once again, North Americans were forced to conserve all their energy, and waited in line to buy gas at record-high prices. The American hostages were finally released on January 20th 1981.

Economic Issues in CanadaForum Question:

Out of the different economic crises that we have examined (Branch Plants, The Auto Pact, the 1973 energy crisis or the 1979 energy crisis), which one do you believe has had the most impact on the world today? Why?

Please post your response on the Discussion forum and respond to at least ONE other classmate’s opinion.

Documents

We will describe some key social, economic, and political trends, events, and developments in Canada between 1945 and 1982, and explain how they affected