Overview of Unit Three: External Forces and Domestic Realities

During the first half of the 20th century, a number of external events and forces significantly influenced the well-being of the Canadian people and the Canadian nation. Two of those events were the First World War and the world-wide Depression of the 1930s.

Canada's involvement in the First World War raised issues that threatened the unity of the nation. The conscription issue bitterly strained relations between English-speaking Canada and francophone Quebec. Involvement also raised the issue of Canada's relationship with Britain and the continuing influence of Britain on Canadian foreign policy.

The Depression of the 1930s called into question existing assumptions and practices concerning the role of government, and in particular, government's role in securing the well-being of the citizenry. New political paradigms and movements arose to challenge the political and economic status quos.

Canada did not become a completely independent nation in 1867. Britain still controlled the new nation's foreign policies with serious domestic ramifications. During the first decades of the century, Britain repeatedly sought Canadian assistance in securing Britain's well-being on the international stage with such as the requests as to furnish troops during the Boer War. English Canada and French Canada espoused differing paradigms concerning the independence of Canada and the nature of its relationship with Britain.

Many English-Canadians favoured retaining a close relationship with Britain. They saw such a relationship as a means of protecting Canadian independence and reducing American influence on the Canadian nation. Some English-speaking Canadians supported the proposal of Joseph Chamberlain, the British Foreign Secretary, for an imperial union in which all the members of the British Empire would be guided by a common foreign policy. They saw Canada's interests and Britain's interests as being largely the same.

Nationalists, within Quebec, insisted that Canada pursue a separate political agenda consistent with being an independent nation. They favoured diminishing or even ending any formal relationships and commitments with Britain. They insisted that Britain cared little for Canadian interests and that a continuing relationship between the two nations might result in Canada becoming involved in foreign conflicts and being victimized by British actions in pursuit of British interests.

The Alaskan Boundary Dispute, the Boer War, and the Naval Issue were all incidents that inflamed the debate between ardent supporters of an Imperial federation and nationalists, many in French Canada, who argued for a separate, independent Canadian foreign policy.

Canada's involvement in the First World War produced a number of consequences. Canadian military achievements and the human price of those achievements contributed to a growing belief that Canada was not fighting as a British colony, but as an independent nation. The Canadian victory at Vimy Ridge saw Canadian troops fighting as a distinct military unit, the Canadian Corps. After June 1917, a Canadian general, Arthur Currie, became commander of the Corps. The exploits of Canadian servicemen such as Billy Bishop and Roy Brown contributed to national pride.

Prime Minister Borden demonstrated the new sense of Canadian sovereignty at the Imperial War Conference of 1917. He drafted a resolution stating that Canada and the other Dominions were completely "autonomous nations" within an Imperial Commonwealth. Borden insisted that Canada was entitled to attend the Paris Peace Conference as a separate and equal member of the Empire. Canada signed the Peace Treaty and became a full member of the new League of Nations.

The War weakened the attachment many Canadians felt towards Britain and Europe. To many, European politics had caused the First World War and many Canadians had payed dearly in that War. Many Canadians wanted Canada to follow the U.S. foreign policy of isolationism and avoid becoming involved in European intrigues. Canadians increasingly looked to the United States to establish political and economic links. Canada's first permanent diplomatic mission was established in Washington in 1927.

Participation in the War also endangered the unity of the Canadian nation. In particular, the conscription crisis, which divided English and French Canada rekindled the debate over Canada's historic relationship with Britain and, indeed, the future of the nation. That crisis influenced Canadian political leaders and Canada's foreign policies following the War. They did not want to repeat the crisis caused by conscription. A policy of isolationism and a reluctance to become involved in international actions that could lead to hostilities characterized Canadian foreign policy. At the League of Nations, Canada was reluctant to support any meaningful sanctions against nations committing aggression towards other nations.

Canadian political leaders also remembered the carnage of the First World War, the "war to end all wars." They, therefore, supported the policy of appeasement in reacting to aggressive actions by Nazi Germany. Britain and other European states pursued a policy of appeasement towards both Germany and Italy. Appeasement seemed to Mackenzie King to be a policy well suited to his goal of avoiding international commitments. King had met with Hitler in 1937, and felt that the German Chancellor only wanted to reunite all the German peoples and did not pose a threat to the other nations of Europe.

The influence of the United States on Canada increased as British influence decreased. Beginning in the mid-nineteenth century, Canadian economic activity became increasingly oriented and dependent on the U.S. domestic market. That reliance became greater throughout the twentieth century and extended beyond an economic relationship, to political and military alliances.

International events promoted a close political alliance between Canada and the United States. Both nations participated as allies in the First World War. During the 1920s and 1930s, the peoples and decision makers of both nations viewed the politics of Europe with distrust and shared an isolationist sentiment to avoid becoming entangled in future European intrigues.

During the Second World War, Canada and the United States initiated a number of defence agreements that effectively integrated war production in both nations. The Cold War tied the two nations together in an ideological and military alliance against the Communist threat. Joint defence agreements such as NORAD and NATO cemented Canadian-American relations.

The Depression and the Role of Government

The world-wide Depression of the 1930s forced Canadians to rethink the role of government in securing the well-being of the nation's population. At the onset of the Depression, governments seemed either incapable or unwilling to respond to the social and economic upheavals caused by the Depression. The long-standing assumptions about the role of government were challenged by new political movements. The role of government changed dramatically following the Depression.

Prior the Depression of the 1930s, governments did not significantly intervene in the lives of citizens or in the marketplace. The tenets of classical liberalism guided the actions of national decision makers. The tenets were:

• that governments should leave people alone to work out their own destinies within the society;
• that the marketplace should be relatively unregulated and social issues such as poverty and unemployment should be the concerns of private charities and churches, not government; and,
• that the marketplace should be the vehicle to secure the economic well-being of the society.

When governments did intervene it was generally intervention that benefited particular segments of society. For example, the consortium constructing the Canadian Pacific Railway received generous land and financial concessions from the federal government. The federal government on numerous occasions was prepared to intervene and use the power of the state to support management during labour disputes.

The Depression fundamentally changed how people viewed government. Many felt that the social and economic catastrophes brought about by the Depression were made more severe by government's unwillingness to intervene actively.

Various movements appeared that articulated different political-economic visions concerning the role of government, wealth creation and wealth distribution. While neither the extreme left or right were able to galvanize large segments of the Canadian public during the Depression, political movements that were not extremist emerged and were able to attract sizable followings.

The Co-operative Commonwealth Federation (C.C.F.), Social Credit, and the Union Nationale, were all formed in the 1930s. Both the C.C.F. and Social Credit competed at the federal level. Although they were not able to attract nation-wide support, they were able to influence national decision makers and the agendas of national governments. Both parties were more successful at the provincial level in Western Canada than at the federal level.

The emergence of new political movements such as the C.C.F. and Social Credit were a testament to the perceived failings of laissez faire government. The belief that the free operation of the marketplace would best secure the economic well-being of Canadians was now being seriously challenged.

In 1932, representatives of several western labour parties and farm groups met in Calgary to form an united socialist political party, the Co-operative Commonwealth Federation. The following year, the new party met in Regina to develop its program of action. The social democratic tenets of the C.C.F. clearly differentiated it from the communist movement. The C.C.F. was committed to achieving social and political change through the democratic process and not through violence and revolution. The party did not favour complete nationalization. While using the state to ensure that everyone could have certain chances in life, individuals were to keep the rewards of their own efforts.

The program for the new party was called the Regina Manifesto. It reflected the concerns of farmers and labour. While calling for public ownership of all financial institutions, public utilities and transportation companies, the Manifesto clearly stated that the family farm was the accepted basis for agricultural production. For labour, there was a promise of a National Labour Code to ensure insurance covering illness, accident, old age, and unemployment. The Manifesto also called for the establishment of publicly- organized health, hospital and medical services.

Mackenzie King's Liberals were aware of the growing popularity of the C.C.F. programs that advocated an activist role for government in securing the well-being of citizens. Government policymakers were also being influenced by the political tenets of reform liberalism and the economic theories of John Maynard Keynes.

Reform liberal theory viewed government as an instrument that could create a climate to enhance opportunities for individuals to maximize their potential. Government should play an active role in shaping society to make it more equitable for all citizens. Equality meant equality of opportunity for all citizens. All citizens should be guaranteed a basic level of services and rights that enable them to exploit their innate and acquired abilities. With equality of opportunity, individuals would have freedom to seek rewards commensurate with their efforts in the marketplace of society.

Reform liberalism did not share classical liberalism's faith in the ability of the marketplace to ensure the well-being of society. For classical liberals, the marketplace and private initiative were the best instruments to provide for society's well-being. Reform liberals believed that the marketplace could produce inequalities that were "intolerable." That made it necessary for governments to redistribute the wealth to produce a fairer distribution of rewards.

For reform liberalism, the economic theories of John Maynard Keynes provided an economic recipe for when and how government should intervene. Keynes maintained that the severity and length of the Depression was, in part, the result of involuntary unemployment and underspending. Economic downturns were the result of a decline in consumer demand for products and services. The unemployed lacked the capital to purchase goods and services. The reduction in consumer demand led to decreased production, which led to further unemployment as factories and businesses closed. Therefore, during economic downturns, it was necessary for government to initiate programs and policies to sustain the demand for products and services.

A new social contract between government and the citizenry was evolving. In return for the citizen working and paying taxes, the state would provide state-funded insurance against temporary unemployment, old age, poor health, and certain family responsibilities.

Following the Depression, a succession of Canadian governments have actively intervened into the operation of the marketplace. Through the redistribution of wealth and the provision of services/programs such as medical care, unemployment insurance, and old age security, governments have attempted to provide all citizens with an acceptable standard of living. Nations that have such networks of social programs are often labelled welfare states.

Core Material for Unit Three

Core material appears in bold type on the pages that follow. The remainder of the material in this unit is not core material; teachers may choose to work through all, some, or none of this material. This material should be seen as an opportunity to individualize instruction for students with different levels of intellectual ability and motivation. Teachers may also choose to substitute locally-developed material in optional areas where it is appropriate. Such material should reflect community interests and must also meet the skills, values, and concept objectives of the course.

Unit Three: Foundational Objectives

Foundational Objective 1

Know that the actions and policies of other nations influence the well-being of the Canadian people and nation.

Core Concepts

Sovereignty

• Know that sovereignty asserts that the nation-state is the supreme decision-making power within a delineated territory and is subject to external authority only by its consent.
• Know that a nation's sovereignty can be challenged and/or diminished by the influence and actions of significant other nations.

Foreign Policy

• Know that the federal government has the responsibility for establishing the nation's foreign and defence policies.
  • Know that certain principles have guided successive Canadian governments in formulating foreign policy, including:
  • ensuring that specific external policies do not pose a threat to national unity;
  • ensuring that external policies are consistent with the nation's economic well-being;
  • ensuring that the nation's sovereignty is secured and not imperilled by the actions of other nations; and,
  • ensuring that international policies do not involve the nation in military conflicts.
• Know that during the decades immediately following Confederation, Britain assumed the responsibility for Canadian foreign policy.
• Know that repeated British expectations of Canada to actively support Britain's international well-being, during the early decades of the 20th century, tested Canadian national unity.
• Know that Canadian political leaders saw that participation in the First World War created deep divisions between French Canada and English Canada, threatening national unity.
• Know that Canadian policymakers were reluctant to become involved in similar foreign involvements that might create further division within the nation.

External Influence

• Know that the actions and policies of other nations influence the actions and well-being of the Canadian people and the unity of the Canadian nation.
• Know that during the period between the two world wars, the influence of the United States on the Canadian nation increased, while the influence of Great Britain declined.
• Know that by the 1920s, Canadians increasingly relied on the U.S. market to sell Canadian goods and resources and on American capital for foreign investment.
• Know that the Second World War led to a closer economic relationship with the United States.

Foundational Objective 2

Know that the conduct of Canadian foreign policy has generated, and continues to generate debate within the Canadian community.

Core Concepts

War Measures Act

• Know that the War Measures Act provides the federal government powers beyond those delineated in the constitution.
• Know that the Act placed restrictions on the civil and political rights of both individual Canadians and groups of Canadians.

Rights

• Know that the perceived emergency created by participating in the First World War impacted the relationship between collective rights and individual rights of citizens.
• Know that the trials of war aroused intense and hostile feelings towards specific minorities within the Canadian community.

Conscription

• Know that imposition of conscription seriously divided English and French Canada and imperiled the unity of the nation.
• Know that conscription was imposed in both the First and Second World War.
• Know that French-Canadians were largely opposed to conscription.

Appeasement

• Know that the policy of appeasement was intended to avoid precipitating a major military conflict by granting concessions to an aggressive state.
• Know that the leaders and populations of the western democracies did not wish to repeat the calamity of another world war and were prepared to offer concessions to other major powers to avoid war.
• Know that the policy of appeasement did not specifically deter the aggression of the totalitarian regimes of Europe and Asia.

Nationalism

* Know that Canadian nationalists, during the early decades of the 20th century, emphasized the "need" for Canada to exercise sovereignty over Canadian foreign policy.
* Know that Canadian nationalists, during the early decades of the 20th century, were particularly concerned over Great Britain's influence on Canadian foreign policy.

Imperialism

• Know that Canadian imperialists believed that the Canadian nation had a moral obligation to support Britain and British interests at the international level.
• Know that imperialist sentiment was largely concentrated within the English-speaking population.
• Know that Canadian imperialists believed that the interests of Britain and Canada were essentially the same.

Foundational Objective 3

Know that various ideologies have articulated differing views about the role of government in securing the well-being of the citizenry.

Core Concepts

Government

• Know that government is a specialized activity of those individuals and institutions that make and enforce public decisions that are binding upon the whole community.
• Know that most Canadians believe that to maintain social order and well-being, government has to perform the following functions:
  • protect society from external attack;
  • enforce rules of conduct within society; and,
  • settles disputes between members of society.
• Know that apart from the above functions, there is little agreement on the role of government.
• Know that the Depression of the 1930s caused Canadians to debate the role of government in securing the well-being of the citizen.

Ideology

• Know that various ideologies provide societal models that define the proper relationship between the individual and the collective society.
• Know that each ideology defines the role of government and private activity in the production and distribution of goods, services and wealth.
• Know that each ideology articulates the role and responsibilities of government toward the general population.
• Know that there is a debate over whether the marketplace or government is the best instrument to secure the economic and social well-being of the citizenry.

Classical Liberalism

• Know that prior to the Great Depression of the 1930s, the tenets of classical liberalism provided direction for governments.
• Know that classical liberalism advocates a minimalist role for government.
  • Governments should largely leave people alone to work out their own destinies within society.
  • Equality of right simply means that all abide by the same rules. It does not mean equality of results. There will always be inequality of wealth, status, and power.
  • Government should not intrude in the workings of the marketplace because the market is more efficient at the distribution of wealth on the basis of merit and effort.

Region

• Know that geography and climate have made Canada a nation of regions.
• Know that each region is unique and will evolve its own economic and social organizations to meet its distinct challenges and opportunities.
• Know that the regions of the nation are not equal in terms of resources, economic options, or the degree of political influence on national decision making.

Depression

• Know that the Depression forced Canadians to question the paradigms that had governed the actions/policies of previous generations.
• Know that the social and economic dislocations caused by the Depression gave rise to new political movements that articulated a role for government in securing the well-being of the citizenry and that the movements challenged existing assumptions and practices.
• Know that the Depression caused a reduction in the demand for goods/services and a reduction in international trade which greatly affected the export-oriented Canadian economy.
• Know that the response of Canadian governments to the Depression was to renew attempts to achieve a reciprocity agreement with the United States.
• Know that the response of most industrialized nations to the Depression was to erect trade barriers to protect their domestic industries, markets and jobs from foreign competition.

Democratic Socialism

• Know that democratic socialism calls for a proactive role for government in promoting the well-being of the citizenry.
• Know that there are fundamental differences between the ideologies of democratic socialism and communism.
  Know that the tenets of democratic socialism influenced the policies of both national and provincial governments.

Reform Liberalism

• Know that the reform liberalism that emerged in Britain in the late 19th century influenced the goals and agendas of liberal political parties in Canada.
• Know that both classical and reform liberals see society as a means for enabling individual to do what they want, without preventing others from doing likewise.
• Know that reform liberals believe that it is a legitimate function of the state to ensure that all citizens are provided with a set of rights and services that gives individuals an opportunity to maximize their potential.

Keynesian Economics

• Know that by the late 1930s, policy planners within the Canadian government were being influenced by the economic theories of John Maynard Keynes.
• Know that Keynesian economic theory influenced the policies and actions of Canadian governments following the Second World War. These theories included:
  • that during times of depression, governments (both federal and provincial) should pump money into circulation by initiating public works projects; and,
  • that it is essential to ensure that consumers have purchasing power to drive the economy because it is consumer demand that generates economic activity - the production of goods and the employment of workers to produce those goods.
• Know that adherents of Keynesian economic theory believe that redistributive measures such as social security, and income supplements such as unemployment insurance, are effective safeguards because they give workers money to buy goods even during economic downturns.

Social Contract

• Know that a social contract is an agreement among individuals to create an organized political society.
• Know that in society people live as if there were a social contract which defines the norms and mores governing conduct within society, both explicitly and implicitly.
• Know that the social contract will define the relationship between the rights and responsibilities of both the individual member and the collective society.
• Know that the Depression gave rise to the belief that a new social contract was necessary to create an economic order in which all citizens were guaranteed at least the bare necessities of life.

Welfare State

• Know that the term "welfare state" refers to nation-states with elaborate government insurance, public assistance, education and medical programs that are designed to maximize the economic and social welfare of their citizens.

Federalism

• Know that Canada's constitution allocates and delineates the powers within the jurisdictions of the federal government and the provincial governments.
• Know that the Depression clearly revealed that some of the provinces and municipalities did not have the financial means to cope with economic hardship.
• Know that only the federal government had the taxing powers to raise sufficient revenues to fund extensive social programs.

Equalization

• Know that many of the government policies were aimed at reducing the disparities that existed within Canadian society.
• Know that the Canadian government has provided funds to the less-affluent provinces to ensure that all provinces have the financial means to provide for all Canadians an equal set of services and opportunities.
• Know that Canadian governments have intervened to reallocate resources and redistribute income, through transfer payments to individual citizens, or through provision of certain services for citizens.

Foundational Objective 4

Know that dialectical thinking is a system of reasoned exchange between points of view in which the merits of each case (thesis) are discussed and evaluated.

Dialectic Evaluation

• Know that dialectical evaluation is the process of:
  • gathering information;
  • defining the issues within the information;
  • testing the viewpoints for factual accuracy; testing the viewpoints for their morality;
  • evaluating the factual and moral testing; and,
  • forming a conclusion about the issue.

Criteria

• Know that criteria are rules or standards which are accepted and used to provide a consistent basis for making judgements.

Evaluation

• Know that in determining whether a viewpoint is based on a legitimate moral principle, a variety of moral tests could be applied, including:
  • role exchange: is the principle still considered valid when it is applied to oneself?
  • universal consequences: would the principle still be considered valid if everyone behaved according to its dictates?
  • new cases: is the principle still valid when it is applied to a different but logically relevant case?

Foundational Objective 5

Know that every society will evolve, through debate and consensus, assumptions and practices concerning certain key societal relationships.

• Know that within each society, a divergence of views exists concerning key societal relationships, including:
  • whether external forces threaten the ability of Canadians to control the societal decision-making processes that affect the well-being of the Canadian nation;
  • whether the well-being of the society should take precedence over the rights and well-being of individual members or groups within the society; and,
  • whether the individual or the collective society is primarily responsible for the well-being of the individual citizen.