Economy
The economy during the war was, for the most part, largely controlled by the government. The risk of inflation was present and the economy needed to remain stable in order for money to go to funding the war. Business were told how much they could charge consumers, while employees were told how much they could earn. Much of this was done out of fear that a time like the Great Depression would return from business trying capitalize on the potential profits that could be made from selling ammunition, clothing or weaponry. The Wartime Prices and Trade Board, created under Prime Minister William Lyon Mackenzie King, helped prevent this by imposing the following:
Wage FreezesA wage freeze was placed for civilians in October, 1941. This prevented anyone from having a higher income than they had the previous year, with the intention of keeping the standard of living the same as it had before. It would effectively minimize any chances of inflation, as people would not have any extra money to spend.
Price FreezesIn order for a stable economy, prices were also frozen in October, 1941. Stores and private business were forced to oblige by the new prices set by the government. Citizens were encouraged to report and fraudulent prices of goods, after which the perpetrator would be reprimanded for his/her actions.
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RationingRations were also included with the other policies set by the government. Citizens were given special cards that, when presented to a local business, they would be provided with a certain amount of beef, vegetables, sugar, tea or any other goods. This had positive and negative connotations as this saved food that could be going towards Canadian troops fighting the war, but this prevented from having certain goods, and this is why some things, like tea or coffee, became scarce during that time.
Victory BondsVictory Bonds was a way for Canadians to contribute to the war directly: by buying Victory Bonds! The money was used to finance the war industries and after the war ended, citizens would be subsidized with extra money earned in interest.
This poster is targeting the public's fear of losing the war, provoking them to invest in it with Victory Bonds.
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