Week 4 - Welfare in Canada

1940-1960s; 1970s

________ - The Canadian Welfare state was created in the ____-_____s. It started fragmenting in the _____, but had much resilience during these period.

Neo-liberal

__________ - means a new definition of liberal. It builds on the old liberal approach, but is also different. Strong influence on liberty.

Determined to roll back welfare programs and shrink the state, both federal and provincial governments of all political stripes by the 1990s pursued a return to pre-Keynesian policy

Canada’s Neoliberalism

Canada

_________ - The Canadian welfare state bared the brunt of neoliberalism as government welfare spending was blamed for the economic stagnation during the 1970s—the post-economic boom stopped around here. Neoliberals wanted to promote individualism, capitalism while pulling back social welfare programs.

Corporatist-conservative approach

_________ - in the 1970s to the Canadian welfare state means that a business approach was used by the federal gov seen in the 21st century- meaning, private encroachment on public provisioning made inroads to alter Canada’s welfare state. Meaning a focus on status-based help where a gov. gives benefits on a person’s social standing/job.

There is a focus on preserving order rather than wipe out class differences, and not as much expansion of social programs and focusing on keeping peace between workers, companies and the state

Liberal order

________ - is a framework of global governance and international relations based on democracy, free markets, human rights, and multilateral cooperation.

Individualism

________ - the idea that freedom of thought and action for each person is the most important quality of a society, rather than shared effort and responsibility

Capitalist society

_________ - an economic and political system in which property, business, and industry are controlled by private owners rather than by the state, with the purpose of making a profit

Markets

_________ - the business or trade in a particular product, including financial products

Keynesian Economics

________ - An approach to economic theory and policy derived from the influential writings of the English economist John Maynard Keynes (1883–1946).

Prior to Keynes, governments tended to be guided by the argument ... that an unregulated economy would tend to move towards full employment, and thence equilibrium. Keynes argued ... that equilibrium could be established before that point was reached, and therefore that governments wishing to achieve full employment had actively to intervene in the economy by stimulating aggregate demand; and, conversely, that if full employment resulted in inflation they should act to reduce aggregate demand, in both cases by using the devices of tax (fiscal) policy, government expenditure, and monetary policy (changes in interest rates and the supply of credit

Providers of welfare prior to the 1940s

__________ - Most welfare programs prior to 1940s were provided by private charities, local governments and churches. The welfare state had much challenge and King (prime minister during the 20s) did as little as possible to secure welfare state measures.

Relief system

_________ - during the Great Depression was the welfare programs prior to the 1940s, and was no match for the Great Depression as it was such a widespread phenomenon.

Local charities/gov/churches went bankrupt, and only to help smaller amounts of people, not the sheer amount of unemployment during the Depression.

Statist intervention

_______ - means that state intervention in human welfare became more of a pressure for the government because of the Great Depression—it helped the democratic socialist Co-operative Commonwealth Federation’s 1932 Regina Manifesto and the League of Social Reconstruction published the influential Social Planning for Canada (1935). More activist federal and provincial governments were pushing for greater say in the economy.

1937-1940 Royal Commission on Dominion-Provincial Relations

_________/Rowell-Sirois Commission - was one of the most pivotal commissions in Canadian history, which re-examined Canada’s economic structure like fiscal and federal relations, overthrowing the constitutional order and embracing ideas from Maynard Keynes. In this case, the federal gov. centralizes taxing power and manage economics on a macro-level. This was shaped by the Great Depression and WWII.

Maynard Keynes was the creator of the economic theory Keynesianism, which stated aggregate demand AKA total spending influences economic output, employment and inflation. Government spending and tax policies can fix a broken economy—the gov which steps in as the primary spender

Federal control of relief policy

__________ - done in in 1940 by transferring previously provincial responsibilities like relief and instance into the federal sphere.

This was aided by Great Britain, whose agreement was necessary to any changes in the British North America Act since Canada’s constitution was still in London—however they were occupied with WWII.

Unemployment insurance (UI)

___________ - was enacted in 1940, mostly geared at male, blue-collar, industrial workers. There was little focus on women who had been largely ignored in the 1930s debate over unemployment—seasonal and domestic servants were also not covered, neither were Indigenous peoples.

Effects of nationalized industries

Statist intervention

___________ - The federal government nationalizing industries and having Crown corporations, rationing and price controls showed that statist intervention could solve problems that the pre 1939 market could not—Canadians had full employment through the war and much gov. intervention into the economy.

The CCF wanted more Keynesian policies and was winning federal by-elections and forming the opposition, even leading in public opinion polls in 1944, even winning government in Sask eventually.

1945 Family Allowance Act

__________ - was a Keynesian “baby bonus” where a small amount of monthly funding was sent directly to mother’s to buy groceries, diapers or formula.

It was a gendered welfare scheme focused on boosting consumer spending and encouraging women to return home from wartime factories.

• However, women could not benefit from UI if they became pregnant and faced employment discrimination and unequal pay, and working mothers were stigmiztized while daycares closed after WWII.

Fordism

___________ - which was a type of compromise reached between unions and companies during the late 1940s. Refers to a situation in which companies would agree to pay high wages and provide decent hours. They would do this in exchange for unions agreeing to remain fairly quiet and stable.

Or in other words, unions agreed to stop causing trouble for companies on the conditions that companies paid workers well and gave them good hours.

This situation is called the "_____" solution/compromise, because it was a type of solution that originally emerged in the Ford car factories earlier in the 1900s.

However, by the late 1940s, a larger sector of the workforce had accepted the "______" solution. Through _____, both companies and workforces achieved good economic returns, and high stability.

1951 changes to Old Age Security

_________ - In 1951, Old Age Security program was expanded by the Liberals to make it universal, as it had previously only covered less than half of the elderly adults population.

It was one of the few concrete social welfare policies passed by the Liberals in the 1920s—originally it was for those 70+ based on need for Canadians of very modest incomes. Post 1951, the majority of Canadians over 70 would receive cheques.

1957 Hospital Insurance and Diagnostic Services Act

____________ - was a program jointly funded with provinces where Ottawa covers half the cost of hospital medical expenses through provincial insurance plans.

This was prompted by Sask, and was a big change from pre 1957 as medical care was covered by private insurance or cash payments by individuals/families.

Now, anyone with a “catastrophic” health issue was covered by the government. However, a limit is that most medical expenses (including non-medical care) like a visit to the doctor, preventative medicine or drugs remained uncovered by provincial plans.

Equalization payments

___________ - the idea that wealthy provinces should share their money to less wealthy ones.

The "equalization formula between the federal government and the provinces” is important as it ensures equality to public services everywhere, including comparable standards. It institutionalized wealth redistribution and became a permanent rule.

1957 Federal Election

__________ - In ____, the Liberals lost to Progressive Conservative John Diefenbaker of Saskatchewan, the first electoral setback until 1930. During this time, Diefenbaker did not fundamentally deviate the slow and steady approach of welfare programs, but mostly expanded and solidified them—BUT did not introduce any new ones.

Rapid welfare changes 1963-1968

________ - Canada’s welfare programs changed rapidly between 1963 and 1968 once the Liberals came back into office after being influenced by advisor Tom Kent who wrote Social Policy for Canada to implement many of the measures from the Kingston Conference and the party embracing a progressive stance.

But these efforts were diff. compared to previous govs., as the speed was quicker compared to previous incrementalism, and the scope, scale and cost dwarfed previous programs.

Canada Pension Plan (CPP)

________ - The first welfare program added during 1963-1968 was this, to create a mandatory contributory plan that all Canadian workers contributed which could support them.

Prior to the 60s pensions existed but on a small scale and only used for poor Canadians with meagre benefits. It differed from Old Age security as in the CPP, individuals and employers paid contributions into a fund that would be used to pay out defined benefits. OAS was a direct form of state support.

 Post implementation, Canadians had a modest but important pension for retirement and a social safety net, and the government had a huge new Canadians savings fund that can be used for investments, real estate and infrastructure.

Saskatchewan

________ - this province publicly funded healthcare insurance was important as it paved the way for Canada’s socialized Medicare.

Public-funded health insurance was brought to light in Saskatchewan by the CCF, specifically Tommy Douglas who led the first elected CCF government. He had campaigned on a social safety net for its inhabitants who had suffered bad during the Great Depression.

There was a failure in 1947 to come to an agreement over Green Book proposals, so Sask created its own Hospital Services Plan—which was the first publicly funded insurance program that ultimately led to the 1957 cross-Canada federal-provincial Hospital Insurance and Diagnostic Services (HIDS) act. Douglas was determined that all medical necessities were covered, not just insurance so in a 1959 prov. gov report he argued universal healthcare was the best option, and then in 1960 the CCF went to the polls to get a mandate for provincial Medicare which they did, and was passed by his successor as Premier.

Tommy Douglas

Saskatchewan and Medicare

________ - Premier of Saskatchewan from 1944-1961, who led the first democratic socialist party in major Canadian politics.

As a child, Douglas suffered from osteomyelitis which made it so his leg had to be amputated—a surgeon offered this for free in exchange for medical students being allowed to observe the surgeries. The CPP dominated Sask politics for much of the post-war.

1962 Doctor Strike

Saskatchewan and Medicare

________ - Sask doctors went on strike in 1962 because medicare was a challenge to a job that prided itself on small business and compassionate healthcare, who were against state intervention into its business.

Not wanting to receive payments from a single government insurer who would determine costs of care, they went on strike and refused to provide medical care. This lasted only three weeks, as normal citizens organized local medical clinics and the steadfast provincial gov. who recruited doctors from other provinces.

Road to federally funded medical care

Road
___________ - After Sask established universal healthcare, the Hall Royal Commission continued to push the idea nationally and endorse a universal, mandatory program.

The Liberal government negotiated the creation of the CPP and entered negotiations in 1965 with provincial governments to create a joint program where the federal gov covered half the cost of a provincial, universal, portable, compulsory and publicly administered health insurance program.

Ontario and Quebec had the biggest resistance—Ontario for worries about cost and Quebec with heightened nationalism against bending to the federal govs will. Luckily Ontario citizens liked the gov-funded system and did not want to look unpatriotic. Quebec was undergoing the quiet revolution, where a compromise was reached where they would have a Quebec-run system.

In July 1^st, 1968, the federal Medical Care Act came into effect. Sask was the first province to join, then over the next 4yrs the rest joined and New Brunswick was last to agree in 1971.

1968 Medical Care Act

___________ - revolutionized health care in Canada as it was different from hospital insurance which only covered catastrophic illnesses but now meant most significant health procedures including preventative ones would now be covered by the required insurer. Everyone in each province had coverage and private insurance for non-essential coverage was banned.

1966 Canada Assistance Plan (CAP)

__________ - came into effect 1966, and targeted particular areas of social welfare by creating cost-shared programs w/ provinces in exchange for ensuring there were no residency requirements—making the programs national.

So the federal gov. agrees to pay half of all provincial welfare costs and direct social assistance—the removal of residency requirements meant a person couldn’t be denied welfare just because they move provinces. This ensured it was universal across Canada, and welfare was a legal right.

The gov. managed to fund it despite provinces being in charge of social welfare and education by using federal spending power, and give money directly to people.

CPP, Medical Care Act, CAP

The 3 planks of the federal Liberal government’s welfare state was: the Canada Pension Plan (____), the ____________, and Canada Assistance Plan (____). These ensured Canadians were protected via welfare to protect citizens from poverty, illness and financial insecurity during retirement.

Drawbacks of the 1960s Welfare State

____________ -  by the Pearson Liberals was that coverage was spotty and varied.

• Women were treated diff. under UI rules and could be laid off for getting pregnant.

• Indigenous peoples existed within a completely separate and unequal system.

• New immigrants couldn’t access the system

• Childcare was still stigmatized thru varying lens of class and race

• Lastly province-to-province there was unevenness in how programs were administered, what benefits were provided. Despite it being federally centralized, provinces still had welfare control.

Neoliberals vs Welfare

Neoliberals

__________ - Neo-liberal thinkers and organizations (American Milton Friedman and Canadian Harry Johnson) wanted to dismantle the welfare state starting in the 1970s because of worsening economics including inflation spikes, rising unemployment and growing government deficits from the collapse of a post-war economic foundation, the 1973 OPEC oil embargo, and the collapse of Bretton Woods fiscal arrangements.

They also wanted to rein in government spending from an “out of control welfare state” for freedom, influenced by Chicago School and global political trends like Margaret Thatcher and Ronald Reagan.

National daycare?

__________ - Trudeau’s Libreals in the 1970s did not pursue a _____ _______ program due to the pressure to move from the welfare state idea, despite being a recommendation. Another welfare policy floated but not pursued was guaranteed annual income—both were victims in this new era.

U.S. + U.K influence

___________ - Thatcher and Reagan’s neo-liberal assault on welfare led to attacks on America’s less developed safety net, and provided discourse and examples for Canadians who wished to challenge Canadian welfare.

The progressive conservative elected in 1984, Brian Mulroney did attempt to cut back some aspects of Canadian social welfare—for example, de-indexing federal Old Age security so they would not keep pace with inflation (though this was walked back), eroding universality of family allowances.

Ended: Family Allowance Act

1945 Family Allowance Act

_____________ - The Family Allowance Act was eroded by the Mulroney government, saying deficit concerns that wealthy families didn’t need it. By the 1990s, the act was basically gone, replaced by a tax credit regime that instead of giving a set amount of money to all Canadian mothers, gave families a tax break based on income—the “baby bonus” was gone.

Unemployment insurance to Employment Insurance (EI)

________ - was changed into _______ by Canadian policy-makers responding to financial pressures of a massive and increasing federal debt. Liberal Jean Chretien 1995 federal budget implemented by Paul Martin remade UI into EI with more rules, drastically cut welfare spending mostly though cutting transfer to the provinces but also cuts to social programs.

Changes: CAP to CHST

1966 Canada Assistance Plan (CAP)

________ - shifted in the 1990s from a guaranteed percentage of funding to provinces for services instead to block grants (a predetermined sum of money) combined with healthcare and post-secondary education funding, and was renamed the Canada Health and Social Transfer (CHST).

• This also meant the provinces in turn had to dramatically cut their own spending.

Mike Harris

___________ - a Progressive Conservative premier of Ontario in 1995, introduced more neo-liberalism through the “Common Sense Revolution”.

The CSR’s answer was the government did not have to do anything to make ordinary peoples’ lives better—via cutting taxes, spending, welfare, stopping building, regulating.

This resulted in cuts to taxes, gutting infrastructure, provincial changes like “Ontario Works” which implemented workfare and cuts to welfare (in one case leading to death of working mother). Nationally, thousands of workers referred to as “hula hoop workers” were let go and hospitals closed.

Stephen Harper: Fedreal Healthcare

____________ - In the 2000s, Stephen Harper reworked healthcare-funding arrangements with the provinces that would see that federal contributions lessened.

The funding turned into a per capita formula that didn’t take into account relative health or demographic challenges for provinces, which exacerbated inequality. A supreme court case also ruled privatization of insurance should be allowed due to long public health wait times.

Stephen Harper: Federal Childcare

_________ - Harper cancelled the Martin federal childcare care program which was government-funded infrastructure to build and affordable childcare system with 50,000 new daycare spaces, to cancelling it by introducing the Universal Child Care Benefit (UCCB) which was a direct monthly payment to parents for each child under 6—a massive tax cut.

Stephen Harper: Kelowna Accord

___________ - this was a plan by the Martin government and First Nations to address educational, health and welfare issues among Indigenous peoples.

Harper did not provide the funding to reach the agreements goals, with focusing Ottawa’s finances towards other First Nations priorities.

Stephen Harper: Head of StatsCan

________ - Head of Statistics Canada resigned in 2010 from the Harper Government removing the mandatory long-form component of the census—it was seen as an attack on basic knowledge and data and completely unnecessary.

(Trudeau reinstated it.)

Quebec students (2012)

_________ - protested the idea of raising tuition fees in Quebec in 2012. Despite Quebec’s government attempting to crack down, they relented and decided to freeze tuition increases. It also helped the Liberals in Quebec get beat by the Parti Quebecois who planned to reverse the hikes.

CPP 2016

Canada Pension Plan

__________ - in 2016, was enhanced after the Ontario gov. lobbied the federal gov to engage in talks with provinces about the CPP. After the enhancement the CPP had increased retirement benefit payout amount so retired Canadians would receive 1/3 of avg. Canadian income instead of ¼.

CCP + Medicare

_______ - the Author says these two are the most important parts of Canadian welfare policy.

They highlight how despite political trends towards neoliberalism, welfare was still incredibly popular and supported by Canadians and made a post-war welfare state unique to Canadian identity in North America.