4.3 Economic Growth and Industrial Expansion
3 min read•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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- 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)
- 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
- 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
- , 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
- , 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 occurred in Canada during the late 19th and early 20th centuries
- expanded, with growth in industries such as textiles, steel production, and consumer goods
- , such as the 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
- Unions advocated for better working conditions, higher wages, and shorter working hours for industrial workers
- , formed in 1883, served as a national federation of labor unions
- (IWW) and other radical labor organizations gained support among some workers
- 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
- 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
Key Terms to Review (16)
Canadian Northern Railway: 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.
Canadian Pacific Railway: The Canadian Pacific Railway (CPR) is a transcontinental railway that was completed in 1885, connecting Eastern Canada to British Columbia on the Pacific Coast. It played a critical role in uniting the country, facilitating trade, and promoting economic development, while also being a cornerstone of national policy and political ambitions.
Collective Bargaining: Collective bargaining is the process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions, wages, and other aspects of employment. This process is a fundamental aspect of labor relations, as it empowers workers to negotiate collectively rather than individually, often resulting in better terms and conditions for employees. The practice gained prominence during periods of economic growth and industrial expansion, as unions emerged to advocate for workers' rights in the face of changing labor markets.
Grand Trunk Pacific Railway: The Grand Trunk Pacific Railway was a major Canadian railway project that aimed to connect the eastern and western parts of Canada, stretching from the city of Winnipeg to the Pacific coast at Prince Rupert. This ambitious undertaking was crucial for national unity, promoting economic growth and industrial expansion by facilitating transportation, trade, and settlement across vast regions of the country.
Industrial Workers of the World: The Industrial Workers of the World (IWW) is a radical labor organization founded in 1905 that aimed to unite all workers in the industrial sector to promote better working conditions, fair wages, and the overthrow of the capitalist system. The IWW was notable for its inclusive approach, advocating for the rights of all workers regardless of skill level, race, or gender, and sought to create 'one big union' that would represent the interests of the working class during a time of significant economic growth and industrial expansion.
Industrialization: Industrialization refers to the process of transforming an economy from primarily agricultural to one based on the manufacturing of goods. This shift is characterized by the growth of factories, advances in technology, and an increase in labor specialization. As a result, it significantly impacts economic structures, social dynamics, and national identities.
Labor activism: Labor activism refers to the organized efforts of workers to improve their rights, working conditions, and wages through collective actions such as strikes, protests, and negotiations. This movement has been a crucial part of economic growth and industrial expansion, as workers sought to influence policies and practices in the rapidly changing industrial landscape.
Labor Movements: Labor movements are organized efforts by workers to improve their rights and working conditions through collective action, including strikes, protests, and negotiations. These movements emerged as a response to industrialization and economic changes that often led to exploitation, low wages, and poor working conditions. They played a significant role in shaping labor laws and the relationship between workers and employers in the context of economic policies and growth.
Manufacturing sector: The manufacturing sector refers to the part of the economy that produces goods using labor and machinery, transforming raw materials into finished products. This sector plays a crucial role in economic growth, providing jobs and driving innovation through technological advancements and industrial processes. The expansion of the manufacturing sector often leads to increased economic prosperity and industrial growth, shaping the economic landscape of a nation.
National Policy: The National Policy was a set of economic measures introduced in Canada in the 1870s aimed at promoting national economic development through protective tariffs, railway expansion, and immigration. This policy sought to strengthen Canadian industry and economy while fostering national unity and reducing dependency on the United States.
National Transcontinental Railway: The National Transcontinental Railway was a major infrastructure project in Canada that aimed to connect the eastern and western parts of the country by rail, completing a vital link for trade, travel, and settlement. It represented a significant commitment by the federal government to promote national unity and economic development, particularly during the era of Laurier's leadership when the focus was on expanding the railway system to stimulate growth and support Canada's industrial expansion.
Protective Tariffs: Protective tariffs are taxes imposed on imported goods to raise their prices, making domestic products more competitive in the market. By increasing the cost of foreign goods, these tariffs aim to encourage consumers to buy locally produced items, thereby fostering industrial growth and protecting local jobs. This economic policy has played a significant role in various historical contexts, particularly during periods of industrialization and economic recovery.
Trade unions: Trade unions are organized groups of workers that come together to advocate for their rights and interests in the workplace, primarily focusing on improving working conditions, wages, and job security. These organizations play a crucial role in the labor movement, which emerged during periods of economic growth and industrial expansion, as workers sought to counterbalance the power of employers and secure fair treatment.
Trades and Labor Congress of Canada: The Trades and Labor Congress of Canada (TLC) was an organization formed in 1881 to unify various labor unions across the country, advocating for workers' rights and better working conditions. The TLC played a crucial role in the labor movement during a time of economic growth and industrial expansion, addressing issues such as wages, hours, and workplace safety, which were increasingly important as Canada transitioned to a more industrialized economy.
Wheat boom: The wheat boom refers to a significant increase in wheat production and exports in Canada, especially during the late 19th and early 20th centuries. This period marked a transformation in Canada's agricultural landscape, leading to economic growth, increased immigration, and the expansion of the Canadian Prairie provinces. The boom played a vital role in shaping the country's economy and influencing policies to support agricultural development.
Winnipeg General Strike of 1919: The Winnipeg General Strike of 1919 was a major labor conflict in Canada where thousands of workers united to protest for better wages and working conditions, leading to a city-wide work stoppage that lasted for six weeks. This strike reflected the growing discontent among workers amidst post-World War I economic challenges, as returning soldiers faced unemployment and inflation surged, highlighting the tensions between labor and government during a period of significant economic growth and industrial expansion.