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poli 243 lec 25 feb.rtf

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Political Science
POLI 243
Mark Brawley

Canada's national policy : protection as a development strategy Feb 25th trade liberalization in 19th c. 1600s, 1500s : period of protective tariffs as a part of mercantilist strategy liberal ideas spread in mid 1800s, 1840s Britain adopts free trade Canada and US sign Elgin Treaty : 1854. Adopting lib. ideas, free trade. American Civil War 1861 : northern govt. needs to raise more money- implementation of tariffs as a war measure. Popular in northern states. South largely rural, exports to Europe, northern states. New England : firms, factories. Once civil war is over, tariffs are gonna continue. Decisions being made by norther states, natives unhappy. First "Great Depression" 1870s : period of overproduction. Many states industrializing at tame time, introduction of new technologies improving transportation (railroads penetrating deep into different continents, steam ships) and communication. Flood of certain commodities (grain, simple form of iron, steel), also a period of economic globalization. Leads to lowering of price in certain places - leads to countries thinking liberal ideas aren't working. Social safety net stripped off. Many of the countries put tariffs as a way to counter this problem Canadian overtures rejected by US : needed a trade agreement with Americans. two major parties in CA and would work to lower tariffs with US but would fail. Election of 1878 John Macdonald as party's real leder in 1878 liberals vs tories : tories had embraced lib. trade policies already, both governments of early 1870s had approached US govt. to lower tariffs. No strong idealogical differences 1878 elections : Macdonald - libs. have had their chance and they failed. So we should have protective tariffs (due to practical politics, used as a campaign slogan). He would look at what the northern states have done. He offers protectionism. strong party allegiances in republican party in US : protectionist policy rewarded. Macdonald would copy tho technique : protecting tariffs. Negotiations won't work. Business interests need high tariffs for guaranteed profit in the foreign competition. His plan popular with certain groups in Canada. His party stays in power from 1878-96 due to this policy. Protectionist tariffs are a part of this policy but they are not all of it. Most people producing products that can't be exported. By putting in protectionism, you also need to appeal to rural people. Selling the national policy three elements t
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