Near the end of the Second World War,
Canada (and many other countries) experienced a baby boom that lasted into
the 1960s. The number of babies born grew sharply in contrast to the
Depression years when poverty forced many people to have very small
families. Immigration also increased once again, following years of very
low rates during the Depression and the Second World War. As a result, the
percentage of older people in Canada grew far more slowly than in the
1930s, and even decreased in some years, while the number of young people
multiplied.
After the Second World War, the process of industrialization continued
in Canada, but at a slower pace. The 1950s and 1960s in Canada were, in
large part, years of economic stability and prosperity. Prices leveled out
in the early 1950s with the end of the Korean War, and overseas trade grew
steadily. The fastest growing part of the economy became the service
sector, including many professional and office positions, also known as
"white collar" jobs. These tended to pay higher salaries than those in
industry, so that more people could now afford to save for retirement.
The strength and influence of unions also continued to grow. In 1956
the Canadian Congress of Labour joined with the Trades and Labour Congress
to become the Canadian Labour Congress. The Canadian Labour Congress
remained in the forefront of the fight for contributory pensions leading
up to the introduction of the Canada Pension Plan.
Despite this prosperity, numerous social problems still plagued the
country. As economic growth slowed down in the late 1950s, the issue of
social security once again gained prominence and new initiatives were
introduced to help Canadians in old age and periods of unemployment and
sickness. Unemployment Assistance was enacted in 1956 to supplement the
Unemployment Insurance program begun in 1940. Before 1957, no national
medical insurance programs existed, and as medical technologies improved,
the cost of receiving treatment became increasingly unaffordable for many
people. In 1957, the introduction of national hospital insurance improved
the situation.
The benefits of these national social programs helped develop a
widespread belief among many people that all Canadians could, and should,
be provided with a basic, guaranteed level of economic security. As a
result, criticism for the programs that existed grew steadily. The funds
provided by Old Age Security, the Blind Persons Act of 1951 and
the Disabled Persons Act of 1954 gradually came to be seen as
insufficient for senior citizens and people with disabilities. Widespread
public support for initiatives in these areas helped influence the federal
government's decision in the early 1960s to seek a Constitutional
amendment to be able to include people with disabilities along with
younger survivors of contributors to the Canada Pension Plan. The original
draft plan had only covered older survivors due to the old age limitation
in the 1951 version of Section 94A of the Canadian Constitution.