Economic growth

Definition

Economic growth refers to the increase in the production of goods and services in an economy over time, typically measured by the rise in a country's Gross Domestic Product (GDP). It often reflects improvements in productivity, technological advancements, and increased investment, which can lead to higher living standards and job creation. In the context of Canadian history, economic growth has played a significant role in shaping policies and infrastructure developments that aimed to foster national unity and economic stability.

5 Must Know Facts For Your Next Test

1. During Laurier's leadership, Canada experienced significant economic growth due to policies promoting trade and immigration, which helped to expand the labor force.
2. The construction of the Canadian Pacific Railway was a key factor in fostering economic growth by facilitating trade and transportation across the country.
3. Economic growth in Canada during the late 19th and early 20th centuries was marked by increased industrial activity, particularly in manufacturing and resource extraction.
4. Government investments in infrastructure projects were critical for stimulating economic growth and connecting remote regions to major markets.
5. The interplay between economic growth and national policies shaped Canada's development as a unified nation and influenced its international standing.

Review Questions

• How did Laurier's domestic policies contribute to Canada's economic growth during his tenure?
  • Laurier's domestic policies focused on promoting trade, immigration, and infrastructure development, all of which contributed significantly to Canada's economic growth. His government encouraged the expansion of the railway system, particularly the Canadian Pacific Railway, which facilitated the movement of goods and people across the country. Additionally, Laurier's pro-trade stance helped Canada integrate more fully into global markets, attracting investments and boosting industrial activity.
• Analyze the impact of the Canadian Pacific Railway on economic growth in Canada.
  • The Canadian Pacific Railway had a profound impact on economic growth by connecting eastern and western Canada, facilitating trade, and opening up new markets. It enabled faster transportation of goods, reduced shipping costs, and encouraged settlement in previously isolated areas. As communities grew along the railway line, this stimulated local economies and contributed to overall national economic expansion by linking agricultural producers with urban markets.
• Evaluate how economic growth during this period influenced social changes in Canada.
  • The period of economic growth significantly influenced social changes in Canada by altering demographics and encouraging urbanization. As industries expanded, there was a massive influx of immigrants seeking job opportunities, leading to diverse cultural landscapes. This shift also brought about changes in labor dynamics as workers began organizing for better rights and conditions. Overall, economic growth reshaped Canadian society by creating new social classes and contributing to shifts in public policy regarding labor rights and immigration.

Related terms

Gross Domestic Product (GDP): The total monetary value of all finished goods and services produced within a country's borders in a specific time period, often used as an indicator of economic health.

Industrialization: The process by which an economy transforms from primarily agricultural to one based on the manufacturing of goods, often leading to urbanization and economic expansion.

Investment: The allocation of resources, usually financial, into various sectors of the economy with the expectation of generating a profit or return, crucial for stimulating economic growth.