Economic Effects Of World War Ii On Canada History Essay

World War II involved the largest armed forces, the longest conflict lines, and the most destructive arms of any war. It is a really complicated issue when you get into all the proficient and political consequence of the war. World War II is a major turning point in universe history. It is one of the of import events that should ne’er be repeated and have had the most far-reaching effects. Besides, it is an unprecedented catastrophe in human history. The human cost of the war is enormous and the effects of the war on humanity, human civilisation and human society in all countries are unprecedented excessively. Besides, cognition of World War II and other planetary turning points in history progresss one ‘s apprehension on the development of our modern-day society. That is why we should analyze the impacts of World War II. In this paper, we focus on the economic effects of World War II on Canada.

In 1938, Canada experienced a terrible economic depression, the economic state of affairs shrunk back to the degree of 1929 during the Great Depression. And the gross national merchandise and per capita income fell below the 1929 degree. The economic crisis besides affected the investing field. The investors are really pessimistic about the economic mentality of Canada, so they lost assurance in the investing. In Canada, there was a serious deficit of capital accretion, and the updating of many mill ‘s installations and equipments became a bubble. Soaring rising prices and lifting unemployment had a serious impact on the life criterions of Canadians.

In September 1939, Hitler invaded Poland, and the Canadian authorities realized that war is inevitable. As Britain and France declared a war on Germany, Canada, as a member of British Commonwealth, should be reacting. Although Canada agreed to take part in the war, it was non every bit optimistic as in the World War I. Many Canadians were still immersed in the painful memories of World War I, so the authorities worried that the engagement in the slaughter of world would do the resistance between the people and the Government. In peculiar, Canada was enduring the terrible economic depression, so people are really pessimistic about the chances of the war.

For the above grounds, Canada was non carefully prepared on stuff at first. The authorities paid more attending to the issue that whether engagement in this war would ease its economic crisis. So the authorities believed that the manner of take parting in the war should be provide stuff aid to British and France. In this manner, they non merely supported the Alliess, but besides alleviate the economic crisis. However, with the autumn of the Denmark, the Netherlands, Belgium and France, the Canadian authorities realized that any thought of seeking to halt this war was unrealistic. At this clip, the Canadian economic system policy began to aim the war in all spheres. The Canadian authorities increased the war budget and revenue enhancement gross and sent military personnels to the European theatre.

Analysis on the economic effects of World War II on Canada

In general, the extent of exposure of an economic system to external environment is vary with the dependance on foreign markets ; if the economic system of the state is less self-sufficing, it is assumed to be more sensitive to alterations of the universe ( Marcus, 2002 ) . In fact, the engagement in the war eased the economic crisis of Canada rapidly and had some important influences on the economic system which was reflected in three facets.

3.1 Effectss on the nucleus of economic system

After the World War II, Canada was transformed from a rural economic system which was based on agribusiness, to one focused on industry and excavation ( Encyclopedia of the Nations, 2010 ) .

Although Canada ‘s agricultural production was increased during World War II, the agricultural population was decreased. Besides, the importance of agribusiness besides declined comparatively. World War II led to the rapid development of Canadian industry, peculiarly the heavy industry. Iron and steel industry, aircraft fabrication, ship building industry and others were quickly turning up during this period. Canada non merely provided aircraft, heavy weapon, armored combat vehicles, machine parts and other military supplies for its ain Army, but besides for its Alliess. Fabrication of aircrafts and armored combat vehicles needed basic stuffs which promoted the development of the energy industry of Canada. Meanwhile, transporting of supplies to the battlegrounds of Europe required a batch of merchandiser ships which could step over the Atlantic, a big figure of orders for the ships made Canada ‘s ship building industry out of the crisis.

On September 9,1943, the 4th day of remembrance of Canada ‘s declaration of war on Germany, the Canadian Minister of Munitions and Supply, American-born Clarence D. Howe, revealed that by the terminal of 1943 Canada have produced more than 600,000 military trucks, more than 35,000 armoured combat vehicles, more than 1,000,000 dozenss of explosives and war chemicals, 60,000,000 unit of ammunitions of heavy ammo, and more than 3,000,000,000 unit of ammunitions of little weaponries ammo, more than 10,000 aircraft, and about $ 300,000,000 of instruments and communications equipment ( Harris ) . During World War II, shipbuilding out-put per man-hour showed an astonishing betterment ( Rapping, 2001 ) . By the terminal of 1943, Canada had produced about 750 ships.

Effectss on the adult females ‘s employment

World War II besides has a positive impact on the adult females ‘s employment of Canada. The colonial nature of Canada, which experienced a transmutation from a agricultural economic system to an industrial one, displayed a particular type of economic development which affected adult females ‘s work in several ways i??Laxer, 1991i?‰ . Before World War II, the industrial sector, particularly in the heavy industry, employed really few adult females workers. Because of the deficit of the labour force and the development of new resources of Canada, many industries opened their doors to adult females. Of class, one of the most of import grounds which drive the adult females to work was the demand for household life. Many households merely got rid of the poorness of the Great Depression and most work forces went to the battleground, so many households ‘ incomes were excessively low to keep household life. In add-on, many adult females thought working in the mills could back up the forepart and it is a loyal action. Therefore, 1000s of adult females went into the mills, the employment rate of Canadian adult females reached to the unprecedented degree. Since so, the adult females made a farther measure in contending for equal rights with work forces.

Effectss on the international trade of Canada

World War II provided a aureate chance for Canada in international trade. During this period, British, as one of the chief Warring States which declared war on German, needed a big measure of war stuff. So it had to halt all export trade and ordered a figure of military supplies to Canada. Canada was a state which depended on exports, so World War II was an of import event to advance the development of export trade of Canada.

In add-on, an of import enlightenment of the war to Canada is that the rise and autumn of the Canadian economic system was closely linked to the alterations in the international economic system. The authorities made the mark of the foreign trade on export and encouraged the endeavors to concentrate on export. Later, Canada became the largest trading spouse with United States. Besides, a big sum of investing flowed to Canada from U.S after World War II, which energized the development of Canadian economic system in the other side.


In recent decennaries, the rapid development of the economic system in Canada shocks the whole universe. However, when people look back to the history of Canada, they will happen that the World War II has a far-reaching and important impact on the Canadian economic system. World War II makes Canada out of the Great Depression rapidly and transform into a powerful industrialised state. So it is meaningful to analyze the effects of the World War II on Canadian economic system.

Many people worried that the economic prosperity during the war was impermanent, and the shadow of the Great Depression would re-emerge. This concern was non unreasonable. After the World War I, the Canadian economic system was dead for a period. Many workers were unemployed and there was a serious economic slack. Therefore, the functionaries of the authorities, Bankss and Ministry of Finance tried their best to happen a good transitive economic policy. It was evidenced that the successful macroeconomic policy after the World War II ensured the steady development of Canadian economic system and realized the passage from war-time to peace-time and maintained a long-time development, which surprises the universe.