Wartime Prices and Trade Board
During the Second World War, Canada’s economy was run as a command economy. This meant that the government determined what and how much was being produced and controlled pricing of goods, rather than the free market. The Canadian government created the Wartimes Prices and Trade Board (WPTB) to manage Canada’s command economy. The Consumer Price Index (CPI) is the average cost of a fixed basket of goods and services; it is an important consideration when calculating inflation. During the four years of the First World War, the CPI increased by 48.3%. One of the principle goals of the WPTB was to control inflation and resulting social unrest.
The WPTB was established September 3, 1939. This was the day Britain declared war on Germany and was one week before Canada joined the war. The WPTB introduced policies like price and wage freezes. Resources, like clothing for example, were also monitored and managed by the WPTB. Therefore, the WPTB monitored clothing manufacturing and encouraged Canadians to ‘make do and mend’. The WPTB was also responsible for food rationing, including the ration booklets.
Though not free of criticism, the WPTB successfully managed to prevent rampant inflation. Prices only increased 2.8% between 1941 and 1945. Even so, farmers and business owners were unhappy with price ceilings for their goods. The restrictions also resulted in hoarding of goods, an increase in black market trading, and illegal trading of ration coupons. In case you missed it, make sure to check out our Rationing series for more information on ‘Make Do and Mend’ and food rationing!
A major part of the Second World War on the Home Front was communication between the government and Canadians at home. The Canadian government was producing propaganda and other types of public messaging throughout the war to keep Canadians informed at home and abroad. This blog series will look at different types of propaganda and public messaging, mediums of communication, and home front organizations.