1976 – 1980: Political Triumphs and Economic Problems

1. 1976 – 1980: Political Triumphs and Economic Problems

2. Economic Problems • Inflation, unemployment, and rising oil prices continued to damage the economy throughout the 1970s • The federal deficit (gvt’s spending greater than its revenues) was rising out of control • This was caused by the social programs of the “Just Society” and Cdns blamed the Liberals

3. The Energy Problem • Middle East oil exporters quadrupled the price of oil in 1973-74 • Alberta supplied 2/3 of Canada’s oil needs at a price much lower than the world price; this angered them • The Cdngvt paid for the other 1/3 and the deficit continued to rise

4. Changing of the Guard • In 1979, after 16 years of Liberal rule, the Progressive Conservatives (PC) won with a minority gvt • Joe Clark becomes PM and Trudeau retires

5. Joe Clark

6. Changing of the Guard • Clark’s gvt was determined to reduce the deficit by cutting gvt spending on imported oil • Clark proposes that Cdns pay an extra 4 cents per litre; no longer will the Cdngvt pay for imported oil on its own!

7. Changing of the Guard • The new budget went to the vote and it was defeated (vote of non-confidence) 139-133 • This meant that there would be yet another election • Trudeau announced he would return as the leader of the Liberals

8. Changing of the Guard • The PC gvt lost because it made a fatal error! • They were so confident that the budget would pass that they voted with some members of its party and some members of its supporting party (the Credistes from Quebec) NOT EVEN THERE!! • Joe Clark had only been PM for 6 months!

9. In 1980, Trudeau becomes PM for the second time with a Liberal majority

10. The Referendum Fight • In Quebec, the Parti Quebecois (PQ) led by Rene Levesque set out to prove they could run Quebec as its own country: • raised the minimum wage to the highest in Canada • increased family allowances • introduced maternity leave for women, a gvt day-care system • passed the controversial Bill 101

11. Bill 101 • French was made the official language of business, gvt, and the courts • Store signs, billboards, and public notices were to be exclusively in French • All children must attend French schools, except those who were born in Quebec with English as their first language • Immigrants had to send their children to French schools

13. Impact of Bill 101 • The bill angered Quebec Anglophones (English speakers) and immigrants • In the first 4 years of the bill passing, an estimated 100, 000 people left Quebec • Corporate head offices moved from Montreal to Toronto • Quebec’s economy took a big hit!

14. The 1980 Referendum • 40% of Quebec was federalist (wanted to stay), 20% of Quebec was separatist (wanted to leave) and 40% were undecided • The question was very unclear and confused many Quebecers

15. ??The 1980 Referendum Question?? • “The Gov't of Quebec has made public its proposal to negotiate a new agreement with the rest of Canada, based on the equality of nations; this agreement would enable Quebec to acquire the exclusive power to make its laws, levy its taxes and establish relations abroad — in other words, sovereignty — and at the same time to maintain with Canada an economic association including a common currency; any change in political status resulting from these negotiations will only be implemented with popular approval through another referendum; on these terms, do you give the Government of Quebec the mandate to negotiate the proposed agreement between Quebec and Canada?”......................HUH??

16. Quebecer after reading the question?

17. The 1980 Referendum • On May 20, 1980, over 60% voted “non” to the referendum question • Rene Levesque promised to try again (it happens 15 years later!) • The next day, Trudeau announced he would begin the process of bringing Canada’s constitution home