1867-1914: Background / Fitful Growth / Changing Conditions / First Wave / Laurier Boom

Fitful Growth: Economy

Economy

Policy Foundations

Block Settlements

During the first three decades after Confederation, however, a disappointing economy significantly discouraged immigration. The nation had been created just before international trade almost ground to a standstill with the beginning of a depression that began in 1873 and lasted until 1896. (Historians now recognize that economic growth continued in these years, but at a slower pace.) Economic problems undercut national programs, most notably Prime Minister John A. Macdonald's national policies. His plan was to link East with West economically by protecting and encouraging Canadian manufacturing, building a transcontinental railway - the Canadian Pacific Railway - and populating the West with settlers.

Macdonald would never see Canada become attractive to immigrants. In the short term, many aspects of his national policies failed to assist the Canadian economy. Although statistics showed some natural increase in population, more people were leaving the country than arriving as emigrants in the years before 1896. Between 150,000 and 191,000 more Canadians left the country than arrived between 1861 and 1871. These losses became even more acute in the next decade. Between 1881 and 1891, as many as 200,000 more people left than arrived in Canada.

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