A relatively recent creation in Canada's mixed economy is Canada's government's independent economic role. Before the 1930's federal and provincial governments maintained the legal system and provided education up to the secondary school level. But health care and universities were left largely in the hands of the private sector, and unemployment insurance was not available, unlike the present where a laissez faire attitude characterized the relationship between the public sector and the business sector. This change began with the Great Depression of the 1930s. Faced with widespread unemployment and deprivation, government officials were forced to attend to the economic welfare of Canadian citizens. From the 1930s to the 1990s, the role of Canadian government continues to expand. The public sector in Canada now provides a host of programs which include payments to adults with children, retirement funds for the elderly, insurance for unemployed workers, welfare payments for those who cannot work, subsidies for higher education, free health care, free schooling, and subsidized public housing for low-income families. These programs are provided by all three levels of government through the federal and provincial governments take the leading role. .
There are four main federal spending programs for households, known as transfer payments, since funds are transferred as a way of increasing households" economic welfare rather than in exchange for products or the supply of resources. First, The Seniors Benefit which provides monthly payments to Canadian residents 65 years and over, with higher dollar amounts for those with lower incomes. Secondly, The Child Tax Credit which provides payments to low income parents of children under 18 years old. Thirdly, Employment insurance a federally run insurance program which is funded by compulsory contributions from employees and their employers that aids people that are unemployed because of layoffs, temporary sickness, of the birth or adoption of a child.
