Alberta’s/Canada’s economic history

[KinAlberta]

Thought I’d start a thread where people could add interesting old facts, etc. on our economic history.

Trying to avoid mention of politics or pandemics

Great Depression in Canada - Wikipedia


“By 1930, 30% of the labour force was out of work, and one fifth of the population became dependent on government assistance. Wages fell, as did prices. Gross National Expenditure had declined 42% from the 1929 levels. In some areas, the decline was far worse. In the rural areas of the prairies, two thirds of the population were on relief.

Further damage was the reduction of investment: both large companies and individuals were unwilling and unable to invest in new ventures.

In 1932, industrial production was only at 58% of the 1929 level, the second lowest level in the world after the United States, and well behind nations such as Britain, which only saw it fall to 83% of the 1929 level. Total national income fell to 55% of the 1929 level, again worse than any nation other than the U.S.[1]

Impact
...”


https://en.wikipedia.org/wiki/Great_...sion_in_Canada

Much more interesting info in article:

Here’s How Canada’s Economy Has Performed Over The Past 150 Years | HuffPost Canada

A Canadian today produces and consumes 15.2 times as much as a Canadian in 1867.

By Daniel Tencer, 07/04/2017





Until about the middle of the 20th century, Canada's economy was a roller-coaster, soaring and plunging often by double digits. But since the 1950s, things have been much more stable.

The single best year for growth that Canada ever saw was 1942, in the midst of a wartime manufacturing boom. The economy grew 18.7 per cent that year.




https://www.huffingtonpost.ca/2017/0...rs_a_23012644/

Interesting article and war time photos:

The Canadian economy and the Second World War | The Channel
By: Kristy von Moos
Ingenium - Canada's Museums of Science and Innovation, Nov 8, 2018


“The war brought an end to the limited opportunities of the 1930s and set the course for post-war prosperity. Unemployment disappeared (the unemployment rate in Canada fell from 11.4 percent in 1939 to 1.4 percent in 1944), wages increased, and many families had two or more members employed during the war, greatly increasing the family income. The war also allowed a great many women to enter the workforce in jobs previously unattainable, at a wage nearly equivalent to those of male workers (something not often seen before).

Overall, Canadian industry produced more than $9.5 billion (equivalent to approximately $100 billion today) worth of material during the war. Although this amounted to less than 10 percent of the total Allied war production, it was a substantial amount for a nation of only 11.5 million people.”

https://ingeniumcanada.org/channel/a...cond-world-war

[Scott N]

Personally I think both AB and Canada are screwed with the new generation of so called "progressive" voters. I'm not sure what is progressive about going bankrupt, but apparently spending well beyond your means is a new thing now.

[Grizzly Adams]

Just found a book, it's that Covid time thing, Most of what we see in our National Parks, was built by Relief workers in the 1930s and a lot of that by hand to maximize work time for the workers. R.B Bennet was a local guy, so Banff and Jasper got preferential treatment. Idleness was an opportunity for the Devil, gotta keep them unemployed men busy and away from the cities, otherwise they might overthrow the government.

Grizz

[Big Grey Wolf]

Grizzly they we not relief workers that built Jasper and Banff parks. They were Ukranian prisoners that were put in camps with Barb wire because few politicians thought they were threat to Canada. Then Bennett and Loughead also used Minnonites , Hutterites and Japanese in forced labour camps for Mt Robson, Riding Mt etc
A very sad bit of past history, good book I got from Jasper.

[KinAlberta]

I’ve heard both those stories. Interesting!


Unemployment Relief Camps | The Canadian Encyclopedia
https://www.thecanadianencyclopedia....t-relief-camps

Dark memories endure of Canada’s internment of ‘enemy aliens’ | World War I
http://ww1.canada.com/home-front/dar...f-enemy-aliens

[Big Grey Wolf]

It was a good book on injustices on varied groups of people in past. The book is "Park Prisoners" by Bill Waiser. Need to be very careful on who we put in Ottawa or Washington. Major problem just now being removed from Whitehouse.

[Grizzly Adams]

Originally Posted by Big Grey Wolf

Grizzly they we not relief workers that built Jasper and Banff parks. They were Ukranian prisoners that were put in camps with Barb wire because few politicians thought they were threat to Canada. Then Bennett and Loughead also used Minnonites , Hutterites and Japanese in forced labour camps for Mt Robson, Riding Mt etc
A very sad bit of past history, good book I got from Jasper.

Actually, it started with Ukrainians in 1914 and ended with the Japanese and conscientious objectors as late as 1945, if you read the same book. Jehovah's Witnesses apparently, were the most trouble of any. The Parks were always looking for cheap labor for their ambitious projects, a nice arrangement for them.

Grizz

[NKP]

Originally Posted by KinAlberta

...economic history.


Interesting article and war time photos:

So what you're saying is we need a war! It does the economy good

[KinAlberta]

Originally Posted by NKP

So what you're saying is we need a war! It does the economy good

Not what I am saying and it looks to me like you’re the one that just said it. :-)

War seems to be a pretty horrible reallocation of capital and investment. Depopulation and razing cities and countryside also has interesting economic impacts.

Really depends on what one sees as “the economy”.
Burning up Slave lake and Ft. McMurray created a lot of new jobs and new spending too.

[NKP]

Originally Posted by KinAlberta

Not what I am saying and it looks to me like you’re the one that just said it. :-)

War seems to be a pretty horrible reallocation of capital and investment. Depopulation and razing cities and countryside also has interesting economic impacts.

Really depends on what one sees as “the economy”.
Burning up Slave lake and Ft. McMurray created a lot of new jobs and new spending too.

Yes, my response was tongue in cheek.

[Grizzly Adams]

Originally Posted by NKP

So what you're saying is we need a war! It does the economy good

Unfortunately, there's a lot of truth in that. WWll helped end the depression and set up post war prosperity. The down side ain't that good and in this day and age, could be the end of us.

Grizz

[NKP]

Originally Posted by Grizzly Adams

Unfortunately, there's a lot of truth in that. WWll helped end the depression and set up post war prosperity. The down side ain't that good and in this day and age, could be the end of us.

Grizz

That was the example I was going to use to back up my response, and then thought it would be stronger if I had examples from Americas other 20th c. ventures or wars fought by Portugal, France or the UK in their colonies (got lazy). I'm certain the war machine is what kept the USSR afloat economically.

[KinAlberta]

Originally Posted by Grizzly Adams

Unfortunately, there's a lot of truth in that. WWll helped end the depression and set up post war prosperity. The down side ain't that good and in this day and age, could be the end of us.

Grizz

Yes, wars sure make things BOOM!

Lots of NIMBYism too!

Was just a few years ago that Britain paid off its debts to the US. (Forget the name of the bonds.) Britain was essentially bankrupted by WWII. Quite the fall from world-wide empire to begging the US etc. for assistance. So war creates winners and losers in more ways than one.

[KinAlberta]

Alberta:

A brief fiscal history of Alberta government finances | Fraser Institute


“... Alberta’s government revenues and spending have come a long way from the 1960s. In 1965-66, Alberta had revenues of $0.651 billion and expenditures of $0.581 billion for a surplus of $70 million. For 2015-16, Alberta is currently projected to have revenues of $44.388 billion and expenditures of $50.222 billion for a deficit of $5.834 billion. Alberta government revenues since the 1960s have only just kept pace with expenditures, with each growing an average of 10 per cent annually (unadjusted for inflation) with the largest annual per cent increases occurring during the boom of the 1970s.

However, since 2000, revenues have grown at an annual average rate of 5.7 per cent while expenditures have grown seven per cent. Indeed, Mark Milke has argued spending would have...”




https://www.fraserinstitute.org/blog...nment-finances

[KinAlberta]

The last 12 to 13 years:

Opinion: Alberta no longer the rich kid on the block | Calgary Herald

Alberta’s drop in fiscal capacity generally, and natural resource revenue specifically, is the primary driver of these national trends. In fact, Alberta’s fiscal capacity (per-capita inflation-adjusted) dropped by an estimated 45.1 per cent between 2007 and this year.

To better understand the fall, consider this: In 2008/09, Alberta’s per-capita fiscal capacity was more than twice as high as the rest of Canada’s. This advantage has disappeared almost entirely thanks to the “Great Convergence.” We estimate Alberta’s fiscal capacity will only be four per cent higher than the rest of Canada (excluding Alberta) this year.



https://edmontonjournal.com/opinion/...nces-shrinking

[Scott N]

What's going to happen to Canada once all of the provinces fall into the "have not" category? Will the feds continue to spend the country into oblivion?

[fishtank]

The banks are putting aside some profit for loan provisions....
https://ca.finance.yahoo.com/news/ca...111006181.html

[KinAlberta]

Originally Posted by Scott N

What's going to happen to Canada once all of the provinces fall into the "have not" category? Will the feds continue to spend the country into oblivion?

It’s fascinating. Not for this thread on history though.

Bottom line, literally, is that there is far less money coming into Canada, into Alberta, so there less money to spread around. Every receiving province will likely face falling transfers but the same or higher service costs.