Were you alive in October 1970? I lived through the October Crisis. I remember it well. Since it is October, let’s remember this critical time in Canadian and Quebec history. Given that Mr. Cross was Trade Commissioner, this has a little bit to do with Finances. However, no, this isn’t really topical, but still an essential piece of Canadian history.
I remember this because my school chum’s Dad was a Member of the Legislature. When I went to a birthday party at their house, there was a machine gun on his front lawn. Some large soldiers were there as well.
Action: The October Crisis of 1970 by Robin Spry, National Film Board of Canada
What the October Crisis Cost Canada
Introduction
October 1970 is remembered for one of the most intense moments in Canadian history—the October Crisis. While its political and cultural impacts are well documented, its financial consequences are often overlooked. Let's explore the hidden economic ripples of the FLQ kidnappings. What about the War Measures Act and the federal response? These events left a lasting imprint on Canada’s financial and political landscape.
Emergency Spending and National Security Costs
Deploying thousands of Canadian Armed Forces personnel to the streets of Quebec wasn’t just dramatic—it was bloody expensive. Precise figures from 1970 are hard to pin down. However, estimates suggest that millions in federal spending were redirected. These funds were allocated toward troop deployment, logistics, and emergency services. This redirection strained the national budget and set a precedent for emergency military spending in domestic affairs.
Economic Disruption in Quebec
For Quebec's business sector, the crisis was a major shock. With city centres militarized and political uncertainty in the air, commercial activity stopped. Some businesses shut down temporarily, foreign investment cooled, and interprovincial commerce saw a big slowdown. The hit to Quebec’s reputation economic climate lingered, widening divisions between English and French business elites.
The Price of Fear: Capital Flight and Investor Confidence
Anglophone business owners in Montreal—already concerned about growing separatist sentiment—saw the FLQ’s violent actions as a tipping point. Anecdotal evidence and research suggest that some capital quietly moved out of Quebec in the years following, especially into Toronto. The October Crisis didn’t cause this shift alone, but it certainly accelerated it. Toronto’s rise as Canada’s financial capital gained steam shortly after.
Birth of Bigger Budgets for Intelligence and Policing
The RCMP, and a long time later CSIS, saw increased federal funding as a direct result of the crisis. Surveillance budgets grew, and intelligence gathering became a formal line item in Canada’s national security strategy. These changes continue to shape how Canada spends on domestic security. Billions are now allocated annually to agencies that trace their post-crisis expansions back to 1970.
Legal Costs and Civil Rights Fallout
Thousands of Quebecois (aka Canadians) were detained without charge under the War Measures Act. In the years that followed, legal challenges were launched, and parliamentary reviews were held—each costing taxpayer dollars. More importantly, these events initiated discussions. These discussions would eventually lead to the Charter of Rights and Freedoms in 1982. Financial and legal implications from these discussions are still being felt today.
Conclusion
The October Crisis was not just a political crisis —it came with a financial impact. The crisis reshaped public spending due to the cost of deploying troops. It also had long-term budget implications for growing Canada’s intelligence infrastructure. Additionally, it affected investor sentiment. Understanding this economic side of the October Crisis provides deeper insight into how national emergencies alter not just policies. They also affect pocketbooks too.
More Info on October Crisis
Historical information on the 1970 October Crisis in Quebec:
🇨🇦 English Resources
- The Canadian Encyclopedia – October Crisis Overview
A comprehensive summary of the events, political context, and aftermath of the crisis.
🔗 Read more - Canadian Museum of History – Teachers' Zone: The October Crisis
Educational materials and primary sources detailing the FLQ's activities and the government's response.
🔗 Explore the resources - Marianopolis College – Quebec History: October Crisis Readings
A collection of readings and documents providing various perspectives on the crisis.
🔗 Access the readings - Canadian Museum of History – Blog: Robert Demers and the October Crisis
An article highlighting the role of lawyer Robert Demers during the crisis.
🔗 Read the blog post
🇨🇦 French Resources
- L'Encyclopédie canadienne – Crise d'Octobre
Une analyse détaillée des événements et de leur impact sur la société québécoise.
🔗 Lire l'article - Collège Marianopolis – Histoire du Québec : Documents sur la Crise d'Octobre
Une collection de documents et de lettres liés à la crise.
🔗 Consulter les documents - Musée canadien de l'histoire – Zone enseignants : La Crise d'Octobre
Des ressources pédagogiques pour comprendre les libertés perdues durant la crise.
🔗 Explorer la zone enseignants
These resources offer a good understanding of the October Crisis, its causes, and its consequences on Canadian society.
NFB Videos
- How do you make money? The NFB shows you how the mint does it.
- Do you remember the crash of '82? The NFB does. Here is a short, talking about the banking problems then.
- The October Crisis is one of Canadian history's most critical moments, leading to the 1976 Quebec Election.
- Before the October Crisis you had Expo 67 which was a magical time in Montreal.
- How do you stop things that should happen from happening? NFB has some ideas.
- What happens when cars take over? Now that is a possibility.
- A special Mother's Day message from the National Film Board.
- Do you understand the Vastness that is Canada? This NFB short will give you a glimpse.
- After the Axe is about someone getting laid off, which is close to my heart.
- Vimy Ridge some argue is when Canada became a nation, the NFB has a perspective on it.
- Who hasn't felt apprehensive at the thought of starting high school?
- NFB does a Fire Prevention short? Why yes, they did.
- Christmas is a subject the NFB has a lot of shorts about. This one looks at both sides of the holiday.
- Do you want an old box for Christmas? An NFB animation might make you want this
- Toronto Boom Town, which grew even larger with the help of the 1976 Quebec election.
- The Faces montage is another amazing bit of animation.
- Here is hockey, or at least how Hockey was back in the 60's!
- Paddle to the Sea is one of my favourite shorts from the NFB
- The NFB does create some of the most beautiful Christmas Cards.
- The Sweater is another of my favourite NFB shorts, a story that tugs at my heartstrings.
- Banks and Humor It is rare that you see banks and humor in the same sentence, but in this Stephen Leacock story, the humor is quite obvious in the story.
