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Oct 12, 1500
Economy of the First Occupants
The Amerindians' economic system was based on barter, or the value of objects defined according to one's needs. There were various trade networks between families, groups, tribes etc. To transport goods, the Amerindians used the canoe in the summer when the river wasn't frozen and during winter, they used snowshoes. Each individual had an economic role too; the men hunted, the women farmed and the elderly looked after the children. -
Oct 12, 1510
European Economy in North America (Pre French Regime)
Before the French Regime, the Europeans had fisheries set up in North America due to the sheer abundance of cod there. -
French Regime (1608 - 1760)
During the French Regime, the Company of 100 Associates had a monopoly over the fur trade in New France. Despite their obligation to populate the economy, the population growth was lackluster and the economy was based entirely on fur trade. Due to the insufficient population density, the French allied with the Iroquois for hunting. The territory was constantly expanding due to the search for new furs. Small trading posts, such as Quebec and Trois Rivières were also set up. -
Arrival of Jean Talon
New France was completely outperformed by the 13 Colonies, as while the British territories were small, they were very prosperous due to trading with other colonies and an economy based on diversified farming and fur trade. To remedy these economic problems and more in New France, Jean Talon was sent over. While he did manage to successfully incite population growth, he failed at diversifying the economy due to the enormous demand for fur trade and not enough people with different skills. -
British Regime (1760 - 1867)
Once the British gained control of New France, they got control over its fur trade industry as well. For a while, Canada remained a country relying primarily on fur trade until the decline of that industry in the early 19th century. -
Napoleon's Blockade
Napoleon Bonaparte created a continental blockade in 1806, blocking the British from their main source of timber in Europe. Because of the need for timber, the timber industry in Canada was developed. New jobs, such as loggers, sawmills and lumberjacks were created and the transportation improved with the creation of canals, railroads and steamships. The timber industry as well as overpopulation also lead to the development of new regions, such as Mauricie, Outaouais and Laurentides. -
Reciprocity Treaty
Britain ended its protectionist treatment with Canada in order to explore new markets using the system of free trade. This resulted in Canada looking south for new markets, specifically to their southern neighbors, the United States. This resulted in the signing of the Reciprocity Treaty, a free trade agreement between the two countries that temporarily ceased customs/duties for ten years. This benefited Canada immensely, as canadian producers gained access to a larger market. -
Canadian Confederation (1867 - Now)
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National Policy
In 1876, John A. MacDonald's National Policy was proposed. After the reciprocity treaty ended, Canada was once again in an economic slump. To remedy this, MacDonald proposed protectionist policies such as raising tariffs while promoting Canadian industries. He also proposed the construction of the Canadian Pacific Railway to facilitate trade coast to coast as well as policies to increase immigration into western Canada for a bigger market. His party won the elections and it was enacted in 1879. -
Beginning of Industrialisation in Quebec
Around the late 19th century and the early 20th century, the industrial revolution hit Quebec. Using capital that came primarily from Great Britain, many factories powered by coal/steam engines were set up. The skilled craftsmen who were once the backbone of many industries were gradually replaced by unskilled workers in assembly lines. Most of the industries in Quebec were primarily in Montreal. Around this time period, Quebec stopped farming wheat and specialized in dairy, wood and textiles. -
World War I
During World War I, Canada was forced to assist Britain as it was still a British colony. This caused industry to boom due to the need for supplies back in Europe. The men were drafted into the army, so many women and children worked in the factories during the war. Despite the economic prosperity, life wasn't the best in Canada. Supplies were rationed to ensure there were enough for Europe and the factories were still quite dangerous. This economic prosperity continued into the 1920's. -
The Great Depression
The Great Depression was the largest recession in history up to that point. In the US, the stock market crashed and triggered a worldwide recession. Worldwide GDP fell by 15%. It also affected Canada severely too. Unemployment reached 27% at its peak, and many ended up relying on soup kitchens to feed themselves. To stimulate the economy, the government set up many public infrastructure projects. This failed, and the government ended up with a deficit. This recession would last until 1939. -
World War II
In Europe, another war had started, and just like last time, the economy in Canada prospered due to the boom in industry caused by the need for supplies in Europe. Many of the same issues from the last war period reappeared, but now censorship was also rampant to counter axis spying operations. Once the war ended, the economy once again entered an incredibly prosperous period, and a phenomenon known as the baby boom occurred due to this. -
The Quiet Revolution
In the 1960's, Jean Lesage's Liberal Party won the elections, triggering a large change in Quebec. They expanded government control to make it the major force behind Quebec's economic and social development, they modernized the education system and also weakened the influence of the Catholic Church in Quebec. Jobs moved away from hard labor, and more jobs for university trained specialists and intellectuals appeared. -
Current Status
At the moment, Canada is a highly developed nation. It has many industries in different sectors, such as aerospace, pharmaceuticals and hydroelectricity. Despite this, we still primarily rely on our abundance or natural resources for our economy. Some of our largest industries are in petroleum, agriculture, timber and fishing. In Quebec, we still specialize in dairy, wood and textile, although we do sell quite a bit of hydroelectric power to Ontario and the US.
