How Did The St Lawrence Seaway Affect Canada's Economy

Canada’s economy has undergone continuous changes throughout the years. Many of these developments include newly established acts, economical, and political reforms; the core of what has shaped the country into what it is today. More prominently, since the 1950s, Canada’s identity as a nation is stronger and more defined due to many of these growths. One can clearly see this from the following examples; the welfare state, the St. Lawrence Seaway, and NAFTA.

A gradual but clearly definite event in Canada’s history is the implementation of the welfare state, contributing not only to the nation’s economic improvements, but to social improvements as well. As a term introduced very slowly into the English language starting in the 1940s (Moscovitch,

Lawrence Seaway is a vital part of Canada’s economy and has led to the country increasing its efficiency in transportation, maximizing profit, and becoming a very active exporter and importer of goods. Officially opened on June 26, 1959 (Hamelin, 2014), the seaway was and is still a very efficient method of transportation for bulk goods not only around Ontario, Quebec, and the US, but it also connects directly to the Atlantic Ocean where international cargo and freight ships can travel. Goods can travel much faster than in the past, and there is no longer any need for the tedious use of multiple forms of transportation like prior to 1959. The St. Lawrence Seaway makes Canada famous for being one of the most heavily used trade routes worldwide (Shaw, 2009). Although the almost staggering cost of construction and maintenance for Canada was three hundred and thirty million dollars, after the installation of six hundred million dollars worth of hydroelectric implementations financed by both Canada and the US, the gross profit earned from the seaway allowed the nation to repay all related debts (Hamelin, 2014). “...in 1977 a change in legislation converted the Canadian Seaway Authority debt to equity held by Canada… this change has been successful” (Hamelin, 2014). This proved that the St. Lawrence Seaway, although a very expensive investment, was worthwhile as a large source of income while saving money on transportation. Another benefit is that Canada is able to export more resources, earning a large profit while at the same time revealing its independence in the world market. Before the completion of the St. Lawrence Seaway, Canada was an importer of iron ore until this new and reliable method of transportation was able to freight large amounts of the raw material, hence making the country an exporter. Iron ore is now the largest commodity exported; other large commodities include grain and coal (Shaw, 2009). Before the seaway was opened, commodities were