Canada in the 1970sChapter 5

The Vietnam War (1954-75)• Canadian PM Lester Pearson gave a speech asking

the US to “rethink their position” in Vietnam.

• Most Canadians did not support American involvement in this foreign war.

• Canada welcomed American draft dodgers.

• Although Canada was not involved in fighting in the war, protest took place throughout NA.

• TV images appeared daily in NA homes and added to the anti-war sentiment.

Western Discontent1.) INFLATION:

• By the 1970s, PM Trudeau was losing popularity. He won the 1974 election by opposing price and wage controls, but then later put them in.

• This policy caused prices for consumer items to rise drastically (inflation), while controls were sued to keep wages down.

• In “normal” times inflation averages about 2-4% a year. During the late 1970s, inflation in Canada hit 10% or higher.

2.) OPEC Crisis:

• In 1972 there was a sudden increase in the price of oil when the Organization of Petroleum Exporting Countries (OPEC) realized that the demand for oil was greater than the supply.

• OPEC raised the price of oil knowing that people would need to pay. The price of a barrel went from $6 US to $16 US.

• By 1979, war between Iraq and Iran caused a drop of supply and prices rose to $40 US.

• At the pumps, prices rose to $1.38 per gallon.

(US - Per gallon)

3.) The National Energy Program

• In response to OPEC, Trudeau implemented the NEP, which froze Alberta oil prices below world levels to keep the cost of oil down for Canadians.

• He also imposed a tariff (tax) on oil sold to the US to make up for the oil imported from OPEC countries

• This policy angered Albertans, as they were prevented from getting fair market value for any oil that they sold.

• This strengthened feelings of Western alienation, and led people to begin to think about separating from the rest of Canada.

Canadian-American Relations1.) Economic Ties

• The Auto Pact – American car companies set up branch plants in Canada.

• Over 70% of all Canadian products were sold in the US.

2.) Entertainment Industries

• PM Trudeau decided that Can TV and radio stations would be required to air a certain % of Canadian programs.

• He also promoted the Can film industry, introduced tax breaks for Can book and mag industries, and gave federal grants to the arts.

• However, some Canadians felt that these measures only served to prevent much needed US investment, and Americans viewed Trudeau’s decisions as unfriendly.

Immigration1.) The Citizenship Act of 1976

• Eliminated genter discrimination, and granted citizenship to children of overseas marriages when the mother was Can (previously only granted to fathers)

2.) The Immigration Act of 1978

• Reduced barriers to immigration and gave provinces a new role in immigration policy.

• New immigrants were welcome regardless of colour, religion, or country of origin.

• Created 3 categories: family class (relatives of Canadians), refugees, and independents (seeking improved living conditions)

3.) Multiculturalism

• With these changes, more immigrants arrived from Asia and the West Indies

• To combat any growing racial tensions, the Trudeau gov’t acted quickly by adopting a policy of multiculturalism.

• Helped schools set up new courses, promoted multicultural events, and set up a council to study the problems of different ethnic groups in Canada.