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the changes of social policy in canada

The Minister of Finance, Paul Martin, announced that Canada had a record a surplus of $2.9 billion, their promises of tax relief have been executed and the unemployment rates has fallen to 7.5 per cent, its lowest level in more than nine years (Finance Canada). The costs of this good news are the budget cut of the federal government on social welfare programs in recently years. Hospital rejected to accept new patients. Toronto High Schools was shut down. Homeless people sleep outdoors. Is the monetary policy that Mike Harris exercising harms the people? The aim of this article is to look at historical reason of Canada being a welfare state and being changed to a more capitalistic society. The era of Keynesian Welfare State (KWS) and contemporary Neo Liberalism and the effects of Mike Harris' government policy will be discussed

In 1878, McDonald national policy was introduced. McDonald introduced a set of import tariffs to protect the domestic market. This policy became the diving force of Canadian economy until 1930's with the problems of the great depression, world economic crisis and government deficit. In 1936, John Maynard Keynes published his book "The General Theory of Employment, Interest and Money". He arg


After1945, the size of government sharply increased as new government institution and new programs were added. The government grows and the government expenditure made up to around 40% of Gross Domestic Product (GDP). Any major decision made by the government would have a great influence to the market. On the other hand, business corporations lost their influence to government as they had during the era of National policy.

GATT formed the framework for seven rounds of global tariff reduction negotiations.

Though 1980's to 1990's, many government programs were cut, industries like communications were deregulated, and many government services and corporations were privatized at both the federal and provincial levels. According to McQuaig,

On the level of production, Multinational Corporations (MNCs) have grown there has been a significant transnationalization of production expressed in the emergence of global production and distribution networks. The North American Free Trade Agreement (NAFTA) encourage the development of three major market: Canada, Mexico, US such that "MNCs have been induced to locate production insides each of these blocs" (David 243). Since Mexico have little regulations toward employment's welfare, environmental protection and US has been the major investor of Canadian manufacture sector, Canada has to deregulate many laws in order to attract US and other foreign investments to continue investing on Canada. In 1989, the trade relationship between Canada and US have moved forward, culminating in the establishment of... Canadian - American Free Trade Agreement (FTA) (Howlett 540). In worldwide, many production sites were shift to the Third World Countries where had no unions or little power on unions and no regulations on working condition and environment protection.

The crises were solved by the breakout of the Second World War (WWII) in 1937.

levers of monetary and fiscal policy, they were able to reduce it by taking away crucial social support systems, thereby making the worker feel more desperate to work." (McQuaig 37)



Some common words found in the essay are:
World Bank, GATT Raising, Countries OPEC, IMF BWS, Henry Ford, Statistics Canada, FTA NAFTA, UI Privatizing, National Issues, Mexico MNCs, welfare programs, monetary policy, social welfare, social welfare programs, social programs, federal government, policy level, influence government, howlett 540, world bank, power unions, policy level production, mike harris' government, free trade agreement, countries oil-exporting countries,
Approximate Word count = 2342
Approximate Pages = 9 (250 words per page double spaced)


  

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