WWI & The Canadian Government on the Home Front

Government Intervention

• During WWI the Canadian government passed certain laws and took certain actions to aid them in the execution of the war; these brought massive changes that affected Canada for the next century.

1.The creation of the “Income Tax”2.The direction of the war economy3.The War Measures Act

The Income Tax• The war was expensive and by 1917 the gov’t needed

more money• Against much outcry (especially from the business

sector) an “income tax” and “business profits tax” was passed (April 1917)

• These taxed a percentage of an individual’s or a businesses yearly earnings.

• It created massive tax revenue for the gov’t to prosecute the war

• The gov’t would keep the taxes in place after the war was over to pay for many of the new services now deemed essential – it is still very much in place today.

Gov’t Intervention in the Economy (and daily life)

• Prior to the war, the gov’t tried to stay out of the economy – it was seen as a place for private enterprise

• During WWI the gov’t stepped in to organize certain crucial industries to ensure efficiency

• Restricted the sale of alcohol to increase efficiency• Rationing: The gov’t restricted the amount of certain

commodities that people could use (sugar, gas, butter, etc.) to ensure that the army had enough.

• Price Controls: The gov’t set limits on how high certain prices and wages could go, so that they did not make things too expensive.

• Victory (war) Bonds: The gov’t encouraged people to buy savings bonds (investments) so the money couyld be used for the war effort

The War Measures Act

• Passed in 1914 it gave sweeping powers to the Prime Minister and the Federal Cabinet

• Could be used in times of “war, invasion or insurrection, real or apprehended”.

• Allowed the PM to create and enforce new laws without parliament

• Allowed for the restriction of any citizen’s rights (including incarceration without trial)

• Allowed gov’t censorship and the commandeering of private property

How it was used….

• The gov’t restricted or sometimes imprisoned “Enemy Aliens” (citizens who had been born in an enemy nation) for fear that they might be spys/sabatouers

• 8600 people were interned (often without proof)• Newspapers, magazines, etc. were censored for

“anti-war sentiment”• The gov’t interfered in the economy (industry) to

ensure efficient production and keep prices low (set wages, etc.).

TOTAL WAR

• Definition: