The Pearson Liberals vowed to get the country moving again after years of Conservative drift. Their timing was fortunate, for the economy had already started to boom in the US. The government itself was rather unsure about how to maintain this inherited prosperity. Some Liberals favoured freer trade with the Americans, while others believed that Canada should erect new protective barriers to limit American influence and foster more Canadian self-sufficiency. One notable experiment of the period, very successful from the Canadian point of view, was the Canada-US Auto Pact, which created a limited free trade area in cars and car parts.
Pearson himself had no expertise or interest in economics. He was, instead, enthusiastic about fostering Canadian distinctiveness, and saw innovations, like the new Canadian flag and a unified Canadian armed forces, as steps in this direction.
He was also enthusiastic about improving social policies. His government's most notable achievements on the domestic front were the Canada Pension Plan, the Canada Assistance Plan, and universal health insurance. Under Pearson's leadership, the Liberals greatly expanded Canada's welfare state.
They also had the good fortune to preside over Canada's 100th birthday celebrations. It was a happy Centennial in prosperous 1967 - highlighted by a great World's Fair in Montréal.
