Canada Must Build A Stronger Domestic Economy

We must reduce our economic vulnerability

The incoming Trump administration is strongly considering Tariffs on vehicles manufactured outside of the United States.

If this were applied to Canada’s auto industry, it would be devastating for our manufacturing sector, and could cause a significant drop in employment and economic output.

This goes to show how deeply vulnerable our economy is to what happens in the United States. And while we will always be effected by the choices made by America, our tremendous vulnerability today is the result of failed decisions by many governments.

Instead of developing our internal economy, we have too often focused on expanding trade at all costs. Despite the rhetoric about trade increasing prosperity, we have instead seen the erosion of our middle class, and declining real wages for Canadian workers. Almost all the benefits of growth have been concentrated in the hands of a select few.

Not only have most people not benefited from growth, but the growth itself is fragile. An economy based so heavily on global trade is more vulnerable than one that has built up local industries.

We can’t control what the United States does, but we can take steps to strengthen our economy, reduce our vulnerability, and claim more economic independence.

Here are 3 steps we can take:

Cancel the carbon tax

Local industries and Canadian businesses will be severely damaged if we impose a carbon tax while the United States does not have one. Companies will be forced to move across the border, costing us jobs, increasing poverty, and making our economy weaker. We cannot afford a carbon tax.

Build a larger Canadian defence industry

Canada has great technological ability and productive capacity, but for some reason our government sees fit to sell weapons to terrible regimes like Saudi Arabia instead of strengthening our defences.

Canada could design and produce our own military hardware, which would create thousands of manufacturing jobs, expand research departments, and help rebuild our badly depleted armed forces.

Canada Defence Industry - Economic Impact
Chart: CADSI

Consider the chart above: Expanding our defence industry could have a big economic impact.

Reject free trade with China

Canada’s current government – which never seems to tire of selling us out to China – is considering a free trade deal with China.

That would be a terrible idea.

Keep in mind that China doesn’t really do free trade deals. They have massive tariffs on countless products. China likes to sell exports cheaply, and keep imports out. It’s worked pretty well for them, as their economy has grown massively, but it hasn’t worked out so well for their trading partners, particularly western nations who have seen manufacturing jobs drain away at a rapid pace.

Free trade with China would be the death knell of our remaining manufacturing sector, and would turn us into nothing but an economic colony of China.

It would represent a doubling-down of the same attitude that has made us so vulnerable. For far too long, our leaders have looked outside of Canada for answers, instead of strengthening ourselves within our country.

That approach must change.

Canadian Self-Reliance is not a bad thing

Canada should trade with other nations, but only when it is beneficial to our country. Free trade should actually mean “free trade,” not us getting screwed by bigger countries or globalist banks and corporations.

Canada has a strong workforce, advanced technology, abundant land, and countless resources. We have everything we need to be more economically independent and self-reliant. The three steps I mentioned above won’t fix all our problems, but they will stop us from digging an even deeper hole into the Globalist grave.

Spencer Fernando

Photo – Twitter