History of Canada (1945–60)

Prosperity returned to Canada during the Second World War. With continued Liberal governments, national policies increasingly turned to social welfare, including universal health care, old-age pensions, and veterans' pensions.

The financial crisis of the Great Depression after WW1, scoured by rampant corruption, had led Newfoundlanders to relinquish responsible government in 1934 and become a crown colony ruled by a British governor. Prosperity returned when the U.S. military arrived in 1941 with over 10,000 soldiers and huge investments in air and naval bases. Popular sentiment grew favourable toward the United States, alarming the Canadian government, which now wanted Newfoundland to enter into confederation instead of joining with the U.S. In 1948, the British government gave voters three Referendum choices: remaining a crown colony, returning to Dominion status (that is, independence), or joining Canada. Joining the U.S. was not made an option. After bitter debate Newfoundlanders voted to join Canada in 1949 as a province.

The Second World War brought many changes to Canada; Canada had an economic boom, the government was necessarily more centralized during the war, and it remained so afterwards. The federal government also began to adopt social welfare policies, often borrowed from the Co-operative Commonwealth Federation, which had introduced such policies in the western provinces even before the war. Federally, these included hospital insurance, old-age pensions, and veterans' pensions. Once the war ended, divisions in the Armed Forces were disbanded, and women would not be recruited again until the Korean War in 1951. Free child-care and tax concessions were rescinded to encourage women to leave the workforce, and an act providing a family allowance or "baby bonus" was passed to help families recover from the cost of war and the wartime wage freeze. Parents of children under 16 years old were given monthly payments between $5 and $8, depending on the age of the children. The economy had prospered because of the war, and in Alberta, there was an economic boom due to the discovery of new oil fields in 1947. Spending on consumer goods increased during the post-war period while car ownership steadily rose, with two-thirds of households owning a car (and 10% owning two or more) by 1960.

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