Under the Duplessis government, the Quebec economy was growing. In addition to the creation of new transport routes for trade, farms were modernized and regions were increasingly developed. Economic liberalism was favoured by Maurice Duplessis.
Economic liberalism is an ideology that government interventions should be limited. Those who adhere to it consider that the companies must have a lot of flexibility. To do this, the government must adopt as few rules and laws as possible in order to give companies more freedom.
In this context, there were more and more foreign companies and they had little accountability to the Quebec government. Many of these private companies came from the United States to exploit resources in Quebec, such as ore. In order to exploit these resources, many jobs were created, which was beneficial for Quebec’s economy. However, the presence of foreign companies raised doubts among many opponents of Duplessis, who feared that the profits generated would be at the expense of the province of Quebec. In fact, since many of these companies came from the United States, most of the profits generated by the exploitation of natural resources crossed the border without the province benefiting from them. However, the Premier assured Quebecers that these companies were contributing to the development of the province.
After the end of the Second World War, the economy of Quebec and Canada experienced a period of growth: industries needed workers, municipal services (the construction of road infrastructures) and social services (hospitals, schools, etc.) were developing. Economic recovery affected all sectors: industries, trade and services.
The increase in consumption brought about changes. The demand for household appliances, cars and daily goods led to an increase in the production of these goods, and therefore to a drop in unemployment since companies needed more employees to produce more goods. Between 1946 and 1956, the number of jobs in Quebec rose from 357 000 to 446 000. The average salary also went up.
Mining and oil regions were booming, as were industrial cities (Toronto, Edmonton, Calgary). Transportation in Canada was facilitated by the opening of the St. Lawrence Seaway in 1954, which allowed boats to navigate without interruption from the Great Lakes to the Gulf of St. Lawrence. The canals built during the 19th century were redesigned to accommodate larger ships. Between 1949 and 1962 , Canada also invested in the development of a road network. During this period, an 8000-km highway from east to west was built: the Trans-Canada Highway.
During the post-war period, the proportion of the population making a living on agriculture was only 11%, with most people living in towns.
Although fewer people were working on the land, the land was producing more thanks to technical innovations and mechanization. In 1944, the government created the Ministry of Agriculture to oversee rural electrification, land drainage and Crédit Agricole, which gave farmers easier access to financing. To protect farmers, the government set up the Agricultural Markets Office in 1956 to monitor and improve the marketing of products.
The economic development of the regions was facilitated by electrification. In 1945, the Duplessis government began rural electrification. The government invested 12 million dollars so that the province could benefit from the advantages of electricity. Between 1945 and 1955, the percentage of electrified farms in Quebec rose from 19% to 90%.
However, the hydroelectric plants already in place proved insufficient. The Beauharnois power station was rebuilt in 1948, but there was a need for new power stations. To organize hydraulic development, the government created the Ministry of Hydraulic Resources in 1945.
Hydro-Québec is a state-owned company founded in 1944. The first power station, Bersimis-1, was built on the Betsiamites River. It was the first power station installed in northern Quebec. Located north of Forestville, the plant marked the beginning of the development of Côte-Nord. A second plant was inaugurated a little later on the same river: Bersimis-2.
In the 1950s, Hydro-Québec began buying power plants in Abitibi. The state-owned company had developed new technologies to facilitate the transmission of electricity over long distances. It was the first company to install 315 kilovolt high voltage lines over a distance of 600 kilometres. Hydro-Québec enabled Quebec to develop its expertise in the production and transmission of electricity. In 1959, further development on the Manicouagan River and the Outardes River was announced.
The Bas-Saint-Laurent and Gaspésie regions also benefited from hydroelectricity work. The power stations on the Mitis River were insufficient and the links between the North Shore and Gaspésie were unreliable. Finally, lines between Lévis, Bas-Saint-Laurent and Gaspésie made it possible to adequately electrify these two regions.
The development of the regions during this period was not limited to electrification. In fact, mining and logging also promoted the development of remote regions. For example, in 1948, the Quebec Iron and Titanium (QIT) company was founded in the Havre-Saint-Pierre region. It was the first Quebec company to extract ore. Since then, the company has adopted a name in French: Québec Fer et Titane (QFT). It continues its activities to this day, north of Havre-Saint-Pierre.