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ProQuest Information and Learning 300 North Zeeb Road, Ann Arbor, Ml 48106-1346 USA 800-521-0600 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. AN ARCHAEOLOGY OF KEYNESIANISM: THE MACRO-POLITICAL FOUNDATIONS OF THE MODERN WELFARE STATE IN CANADA 1896-1948 by Timothy Bruce Krywulak, B.A (Hons.), M.A A thesis submitted to the Faculty of Graduate Studies and Research in partial fulfilment of the requirements for the degree of Doctor of Philosophy Department of History Carleton University Ottawa, Ontario 5 August 2005 © copyright 2005, Tim Kiywulak Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 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The Department of History recommends to the Faculty of Graduate Studies and Research acceptance of the thesis AN ARCHAEOLOGY OF KEYNESIANSIM: THE MACRO-POLITICAL FOUNDATIONS OF THE MODERN WELFARE STATE IN CANADA, 1896-1948 submitted by Timothy Bruce Krywulak, B.A. (Hons.), M.A. in partial fulfilment of the requirements for the degree of Doctor of Philosophy A.B. McKillop Chair of the Department of History Duncan L. McDowall, Thesis Supervisor Chad M. Gaffield, University of Ottawa, External Examiner Department of History Carleton University 23 September 2005 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Abstract The conventional wisdom on socio-economic policy in Canada underwent a dramatic shift between the First National Policy of Sir John A. Macdonald and the Second National Policy o f William Lyon Mackenzie King. Over the course of just one generation during the early to mid-twentieth century, the federal government moved from a fairly narrow pursuit of economic development through tariffprotection, transportation subsidies, and immigration promotion to a much more expansive quest for economic and social stability through a host of new policy initiatives such as old-age pensions, unemployment insurance, and family allowances. Thus far, this transition has been variously described as a revolution in economic thought emanating from the mind of British economist John Maynard Keynes, a dramatic re engineering of the state by civil service mandarins who had been influenced by Keynesian ideas, a liberal-democratic response to socialism, or a natural outcome of industrialization, urbanization, the Great Depression, and other historical events. This study suggests that we can advance our understanding of this process even further by reevaluating our assumptions about the seemingly autonomous influence of individuals, ideas, and events. To do so, it seeks to dig down below the immediate causes to the longer-term transformations that propelled the transition from one policy paradigm to another. This “archaeological” approach thus directs our attention towards long-run developments such as the expansion of the university system, the growth of large-scale business firms, the rise of organized labour, and the centralization of the provision of social welfare into large public and private bureaucracies. Moreover, at even deeper levels, it brings us to an examination of the rise of new scientific disciplines in areas such as business, Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. economics, and psychology, as well as the reshaping of concepts such as the individual worker, the unemployed worker, and the national income. Collectively, over the course of the late nineteenth to the early twentieth centuries, these complex and disparate transformations laid the intellectual and political groundwork for a new consensus on socio economic policy among key interest groups in the state, academic, business, and labour communities in Canada. In short, these transformations formed the macro-political foundations of Canada’s postwar, “Keynesian” welfare state. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Acknowledgements My interest in the history of the modem Canadian welfare state was initially sparked over six years ago in a graduate political science seminar offered by Dr. Phillip Hansen at the University of Regina. Since that time, I have been extremely fortunate to have had the assistance of numerous individuals and institutions in my endeavour to cany this interest through to the completion of a doctoral thesis at Carleton University. As such, I would like to take this opportunity to express my sincere appreciation. To begin with, I would like to thank three people who have made a significant contribution to my development as a scholar in general and to this project in particular. The first is my thesis supervisor, Dr. Duncan McDowall. Throughout my time at Carleton, Duncan has been a fantastic mentor and a continuous source of support His door was always open, and he always responded to my research with enthusiasm and erudition. Secondly, I would like to thank Dr. Robert Goheen. In his persistent challenging of my assumptions about the writing of history, Robert has made this project a much better work. Thirdly, I would like to thank Dr. N.E.S Griffiths, who not only kept me employed as her research assistant but who also furnished many helpful comments and good breakfasts along the way! I would also like to gratefully acknowledge the funding provided for this project by the Department of History, the Friends of the History Department, and the Faculty of Graduate Studies and Research at Carleton University, as well as the Ontario Graduate Scholarship program and the Social Sciences and Humanities Research Council of Canada. My thanks as well to Patricia James and Gayanne Dewar, both of whom came through with additional financial assistance at a time when I really needed it. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Special thanks go to my family and friends, including Troy Kiywulak, Jim Kiywulak, Joseph Krywulak, Emily Arrowsmith, Kerry Badgley, Curtis Gagne, Rachel Heide, Vadim Kukushkin, Sara Long, and JeffNoakes, as well as Darin and Julie Peaker, Jo-Anne and Scott Chapman, and Brian and Janet Watson, whose comradery and encouragement helped keep me going. Similar gratitude must go to all my colleagues at the University of Ottawa Research Group too. I also would be remiss here were I not to mention the valuable assistance provided by Joan White and Regina Aulinskas,