The welfare state developed in Canada because of the influential effect of business that has a powerful relationship with the federal government, even at times where Conservative or Liberal parties were in power. Through economic development, the state helped raise the qualifications for the labour force, while reducing their expectations at the same time. Along with that, the state gave businesses its bailouts, subsidies, funding guarantees, and infrastructure, at this time.
Comparing Canada and the United States helps to outline what is discrete about Canadian politics. In Canada, businesses were never exposed to the same kind of strict anti-combines rules and regulations as those found in the US. In the 1930s and 1940s, the welfare state in the US was more supportive of organized labour and later implemented a stricter set of environment rules and controls, in response to the public interest movement. Due to the
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This corporate community has been closely tied to the capital in New York and London rather than their workers in Canada. Due to Canada’s being dependent on foreign trade and investment, Canadian business leaders have always been globally conscious in order to control the support from Canadian government.
For while, in order to obtain political power, the ordinary working force has to be mobilized and organized to act in a collective fashion and democracy delivered. Followed by the Great Depression and World War II, there was an increase in democratic activities. First, the labour movement was able to protect their rights to shared bargaining and enjoy a share of growing productivity. Soon after the war, the pressure from the “political left” started to ease as the commitment that the Canadian government had with the Keynesian system of economic regulation began to weaken (Langille,