Effects on Canadian Society
The economy during the war was, for the most part, largely controlled by
the government. The risk of inflation was present and the economy
needed to remain stable in order for money to go to funding the war.
Business were told how much they could charge consumers, while employees
were told how much they could earn. Much of this was done out of fear
that a time like the Great Depression would return from business trying
capitalize on the potential profits that could be made from selling
ammunition, clothing or weaponry. The Wartime Prices and Trade Board,
created under Prime Minister William Lyon Mackenzie King, helped prevent
this by applying a variety of policies.
Wage Freezes
A wage freeze was placed for civilians in October, 1941. This prevented anyone from having a higher income than they had the previous year, with the intention of keeping the standard of living the same as it had before. It would effectively minimize any chances of inflation, as people would not have any extra money to spend.
Rationing
Rations were also included with the other policies set by the government. Citizens were given special cards that, when presented to a local business, they would be provided with a certain amount of beef, vegetables, sugar, tea or any other goods. This had positive and negative effects as the saved food went towards Canadian troops fighting the war, but this prevented Canadians from having certain goods, and this is why some things, like tea or coffee, became scarce during that time.
Victory Bonds
Victory Bonds were bought to help Canadians contribute to the war. The money was used to finance the war industries. After the war ended, citizens would be subsidized with extra money earned in interest.
Price Freezes
In order for a stable economy, prices were also frozen in October, 1941. Stores and private business were forced to oblige by the new prices set by the government. Citizens were encouraged to report and fraudulent prices of goods, after which the perpetrator would be reprimanded for his/her actions.
Wage Freezes
A wage freeze was placed for civilians in October, 1941. This prevented anyone from having a higher income than they had the previous year, with the intention of keeping the standard of living the same as it had before. It would effectively minimize any chances of inflation, as people would not have any extra money to spend.
Rationing
Rations were also included with the other policies set by the government. Citizens were given special cards that, when presented to a local business, they would be provided with a certain amount of beef, vegetables, sugar, tea or any other goods. This had positive and negative effects as the saved food went towards Canadian troops fighting the war, but this prevented Canadians from having certain goods, and this is why some things, like tea or coffee, became scarce during that time.
Victory Bonds
Victory Bonds were bought to help Canadians contribute to the war. The money was used to finance the war industries. After the war ended, citizens would be subsidized with extra money earned in interest.
Price Freezes
In order for a stable economy, prices were also frozen in October, 1941. Stores and private business were forced to oblige by the new prices set by the government. Citizens were encouraged to report and fraudulent prices of goods, after which the perpetrator would be reprimanded for his/her actions.
Victory Bond advertisement encouraging Canadians at home to buy them. This was to stop the devil (Hitler) from conquering the world
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This poster encouraged Canadians to buy victory bonds. By buying them, they would ensure that their future would be secure. (The money used to buy the bonds would support the Canadian soldiers fighting in the war.)
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Here an image of an attractive woman is used to get Canadians to buy Victory Bonds. It likens buying Victory Bonds to going out on a date with a "blond".
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Canadians are pressured into rationing through the fact that by doing so, another person will have a chance to live a happy life. (There will also be less conflict, boycotting etc.)
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As an alternative to rationing, Canadians were encourage to plant their own crops in their backyards. The foods grown could then be canned and eaten in the winter.
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