HIS113-13 Business and the State in the Early 20th Century

HIS113-13 Business and the State in the Early 20th Century...

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Unformatted text preview: Business and the State Business and the State th Early 20 Century Lecture Thirteen History 113 Business and the State Business and the State Relationship between Business and State Forms of Government Intervention: 1. Promotional Activities: To promote and encourage economic activities and development Examples: Subsidies, tariffs, monopolies, licenses 2. Regulatory Measures: To control business to correct problems arising from economic activities Examples: labour laws, capital reserve requirements 3. Public Enterprise: Government owned or initiated business – usually to facilitate business that is in the “public good” Examples: Inter­colonial railway Business and the State Business and the State Growth of Government Intervention by early 20th century – Why? Problems of Industrial, Urban Development The Rise of Big Business Nationalist Pressures Pressure for government to moderate the forces of the market Transitional Period (early 20th century) National Policy National Policy Tariffs – 35% by 1887 To encourage foreign capital, investment, technology, skill, branch plants Results: Growth of manufacturing Support of Business and Politicians Support of Central and Maritime regions Criticism: Non­competitive manufacturing sector (Cartoon – Benefit to whom?) Example: Textile Industry Regulating Business in Early 20th C Regulating Business in Early 20 Increased pressure for government regulation To “protect” society from problems of unrestrained competition and exploitation Example: “anti­trust” legislation: Pressure of small business associations and consumers against power of big business Legislation for “suppressing the evils arising from… combinations and monopolies” Various acts from 1889 onwards (revisions) Ineffective: Due to vague wording and ineffective enforcement Uncertainty as to when competition was “unfair” and whether government should interfere in market Depression 1930s Depression 1930s World Economic Crisis Response of Canadian Government: Traditional – Tariffs New Forms of Regulation: Canadian Wheat Board 1935 Bank of Canada 1935 (Bank of Canada notes 1935 ­ $1 and $25 commemorative) “New Deal” – Changing direction of government regulation ...
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