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4.3 Economic Growth and Industrial Expansion

3 min readLast Updated on August 6, 2024

Canada's economy boomed from 1896 to 1911. Wheat exports skyrocketed, railways expanded, and industries grew. This rapid development transformed the country, shaping its future as a major economic player.

Cities swelled as people flocked to new factory jobs. Labor unions formed to fight for workers' rights. These changes set the stage for social and political shifts that would define Canada in the 20th century.

Western Expansion and Railways

Wheat Boom and Agricultural Expansion

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  • Wheat boom in the early 20th century significantly increased agricultural production and exports in Canada
  • Driven by high demand for wheat in Europe and improvements in farming technology (mechanized harvesting)
  • Encouraged settlement and development of the Prairie provinces (Manitoba, Saskatchewan, Alberta)
  • Canadian Pacific Railway played a crucial role in transporting wheat from the Prairies to ports for export
  • Wheat exports became a major contributor to Canada's economy and global trade

Transcontinental Railway Expansion

  • National Transcontinental Railway constructed between 1903 and 1915 to connect Eastern Canada with the West
    • Operated by the Canadian Government Railways and later merged with the Canadian National Railway (CNR)
    • Facilitated the transportation of goods, resources, and passengers across the country
  • Grand Trunk Pacific Railway, a subsidiary of the Grand Trunk Railway, built a line from Winnipeg to Prince Rupert, British Columbia between 1905 and 1914
    • Provided an additional transcontinental route and competed with the Canadian Pacific Railway
    • Faced financial difficulties and was eventually nationalized and merged into the CNR
  • Canadian Northern Railway, founded in 1899, expanded rapidly across the Prairies and into Eastern Canada
    • Competed with the Canadian Pacific Railway and the Grand Trunk Pacific Railway
    • Financial struggles led to its nationalization and incorporation into the CNR in 1918

Industrialization and Urbanization

Industrial Growth and Manufacturing

  • Rapid industrialization occurred in Canada during the late 19th and early 20th centuries
  • Manufacturing sector expanded, with growth in industries such as textiles, steel production, and consumer goods
  • Protective tariffs, such as the National Policy of 1879, encouraged domestic manufacturing and industrial development
  • Foreign investment, particularly from the United States and Britain, played a significant role in financing industrial growth
  • Industrialization led to the rise of factory work and the growth of the working class

Urbanization and Population Shifts

  • Industrialization and economic growth led to rapid urbanization in Canada
  • Rural populations migrated to cities in search of employment opportunities in factories and other urban industries
  • Urban centers, such as Montreal, Toronto, and Winnipeg, experienced significant population growth
  • Urbanization led to the development of urban infrastructure, including housing, transportation, and public services
  • Social and economic inequalities emerged as cities grew, with working-class neighborhoods often characterized by overcrowding and poor living conditions

Labor Movements and Unions

  • Industrialization and urbanization gave rise to the labor movement and the formation of trade unions
  • Unions advocated for better working conditions, higher wages, and shorter working hours for industrial workers
  • Trades and Labor Congress of Canada, formed in 1883, served as a national federation of labor unions
  • Industrial Workers of the World (IWW) and other radical labor organizations gained support among some workers
  • Labor activism and strikes became more common as workers sought to negotiate with employers and improve their conditions

Winnipeg General Strike of 1919

  • Massive strike involving over 30,000 workers in Winnipeg, Manitoba, in May and June 1919
  • Strikers demanded better wages, working conditions, and the right to collective bargaining
  • Strike paralyzed the city and inspired sympathy strikes across Canada
  • Authorities, including the federal government, responded with force, leading to violent confrontations (Bloody Saturday)
  • Strike ultimately ended without significant gains for workers but had a lasting impact on Canadian labor relations and politics

Term 1 of 16

Canadian Northern Railway
See definition

The Canadian Northern Railway was a major railway company in Canada that played a crucial role in connecting the provinces and fostering economic growth during the late 19th and early 20th centuries. It facilitated the movement of goods and people across vast distances, contributing significantly to the industrial expansion of Canada and promoting regional development through improved transportation links.

Key Terms to Review (16)

Term 1 of 16

Canadian Northern Railway
See definition

The Canadian Northern Railway was a major railway company in Canada that played a crucial role in connecting the provinces and fostering economic growth during the late 19th and early 20th centuries. It facilitated the movement of goods and people across vast distances, contributing significantly to the industrial expansion of Canada and promoting regional development through improved transportation links.

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

Term 1 of 16

Canadian Northern Railway
See definition

The Canadian Northern Railway was a major railway company in Canada that played a crucial role in connecting the provinces and fostering economic growth during the late 19th and early 20th centuries. It facilitated the movement of goods and people across vast distances, contributing significantly to the industrial expansion of Canada and promoting regional development through improved transportation links.



© 2025 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

© 2025 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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