POLI 243 Lecture Notes - Free Trade, Policy, John A. Macdonald

26 views7 pages
Published on 18 Apr 2013
School
McGill University
Department
Political Science
Course
POLI 243
Professor
National Policy
Protection as a Development Strategy 25/02/2013
13:38:00
Trade Liberalization in the 19th century
Liberal ideas spread in the mid-1800s
Elgin Treaty (1854)
oCanada and the US strip tariffs between themselves – free
trade grows
American Civil War
oUS North introduces tariffs to raise money as a war measure
Once the war is over, the tariffs stay
During reconstruction, Southern states don’t have
political representation
oNorth: textile, factories etc in New England that didn’t want to
compete with European manufacturers
First “Great Depression” occurs in the 1870s
oMany states industrializing at once, introduction to new
technology (transportation: steam ships, extending railroads;
communication)
oFlood of goods on markets, drives the prices down
oPut tariffs in place to protect themselves from trade
Canadian overtures rejected by US
oBoth political parties try to convince US to remove tariffs
The Elections of 1878
Leader of the Tories – Sir John A MacDonald
Liberals versus Tories no distinct ideological policies in terms of
economy, both follow liberalism
Liberals had failed to get treaty with the US MacDonald used it
against them in the election
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oLiberals had their chance and failed we should have a
protective tariff
Protectionism based on US model
oRepublicans were able to stay in power in the US due to
strong support base, but also protectionism to protect certain
interest
oBlock US/European goods. Put tariffs to guarantee market
and profit in face of competition
Selling the National Policy
Protectionism is good for certain sector’s interest
Three elements to gather broad support, complement each other
oProtective tariffs – popular in urban areas
oInfrastructural development (the CPR) – railroads connecting
east, prairies and west coast to sell goods
Subsidized by the government (land, money)
oSettlement of the western provinces – regional specialization
from within the country
The National Policy in place
Intended to support economic development, just without relying on
international trade
Legislations beings in 1879
Tariffs protect industrial goods right away
Settlements policies are too weak – immigrants are refugees from
Europe unskilled labor, have no money
oPeople leave more than they come in
CPR crosses the continent
oAlso exercises monopolistic powers
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Document Summary

Once the war is over, the tariffs stay. Put tariffs to guarantee market and profit in face of competition. Subsidized by the government (land, money: settlement of the western provinces regional specialization from within the country. Intended to support economic development, just without relying on international trade: legislations beings in 1879, tariffs protect industrial goods right away, settlements policies are too weak immigrants are refugees from. Europe unskilled labor, have no money: people leave more than they come in, cpr crosses the continent, also exercises monopolistic powers. The selection and implementation of the national policy: system-level: us policies constrained choices, domestic-level: trade cleavages visible in elections, manufacturing needs protection, bureaucratic politics: tariffs as revenue. Ideas: classical liberalism challenged by crisis of the 1870s. Laurier is pm for 15 years he was excellent at compromises/consensus. Change rate to cross grain from the west.

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