Government played an important role in the success of

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Government played an important role in the success of automotive industry in Canada Government policies such as protective tariffs and imperial preference benefitted entrepreneurs like McGregor and McLaughlin family, and allowed them to start an automotive industry in Canada. The depression saw a reversal of lower duties and a move to protect the auto industry During the depression even though the auto industry became leaner(smaller) and more concentrated it did survived under the protection and a reduced tariff from public policy
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Week 6: Eaton’s: from the great depression to the challenge from Simpsons-sears In the Beginning Eaton was dominating the retail industry The Good Years The T. Eaton Company Limited was founded by John David’s Grandfather Timothy Eaton an Irish immigrant in 1854 Timothy established three fundamental policies: 1.cash only 2. A one-price system that eliminated bargaining 3. Guarantee of goods satisfactory or the customer’s money refunded 1884 launched Eaton’s Catalogue Opened its first factory in Toronto Early in the 20s century Eaton’s went national establishing store in rapidly growing city of Winnipeg the heart of Hudson’s Bay Company’s Empire Eight-largest retailer in the world Eaton’s had complex and controversial relationships with suppliers—during Great Depression Eaton and other buyers demanded lower prices than the manufacturers can accommodate and resulted in many manufacturers went out of business even those who survived often paid workers subsistence (extreme low) wages H.H. Stevens and the Price Spreads inquiry Minister of Trade and Commerce H.H. Steven made a speech to criticize the department store’s action of mass buying and use this power to caused destruction of smaller retailers and manufacturers who could not could not accept the price dictation of the mass buyer H.H. Steve felt during hard times like Great Depression blame must be assigned to these gain retailers to gain public support Eaton felt in order to help its customer during Great Depression one method was to keep the cost of merchandise down however this action was been tagged negatively in the public. The second method is to addressing the public through media. Steven established a committee to exam this issue in 1934 R.Y. Eaton retained a economist to produce a report of Eaton’s importance in Canadian economy The committee exposed Eaton’s employee were making less than minimum wage The committee later became a royal commission – Price Spreads Comission
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The inquiry changed Eaton’s management philosophy and they viewed the profit are considered sinful. Changing of the Guard: John David Eaton The end of Great Depression brought increase in sales and return of veterans and growing middle class increased demand John David started expansion by taken over Spencer’s chain in Vancouver More people moved outside of the city centre to suburbs the downtown stores lost sales Increased disposable income and mobility by automobile intensified competition between
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