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POLI 243 (69)
Chapter 12

Political Science Chapter 12 Summary.docx

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McGill University
Political Science
POLI 243
Mark Brawley

Chapter 12 Sir John A. Macdonald and the Introduction of Canada’s National Policy - 1870s: had freer trade spread internationally due to Cobden-Chevalier Treaty - Cobden-Chevalier treaty purpose: major economies had liberal trade policies - Trade wasn’t always popular because it flooded the market with commodities and made prices go down - The Tories (Conservatives): won in 1870s due to protectionist policies - Sir John A. MacDonald basically asked them how much protection they wanted and would grant it to them; obviously this made them ask for as much protection as possible - Liberals wanted their traditional free trade - US had declined interest in trade liberalization as well - Protectionism could be fashioned to expand tariffs to cover products so that people’s employment was secure and to whoever it hurt, they could be compensated - They lessened trade by increasing tariffs - 1 policy: implementing tariffs to restrict foreign imports - 2 policy: The Canadian Pacific Railway (CPR) would make it easier and cheaper for farmers to ship goods to markets as well as tax breaks and subsidies of money and land around the tracks rd - 3 policy: immigration and settlement of western regions policies were implemented. Dominion Lands Act (encouraged homestead) - All 3 policies were implemented as the National Policy and was gov’t centrepiece for 20 years The System-Level: What Choices did Canada Have? - Economic downturn of the 1870s led to implementation of some form of protectionism - US represented principal trading partner thus US decisions shaped Canadian options - Having compromises rejected, Canada had to either keep their doors open to closing markets or retaliate - The Cobden-Chevalier Treaty encouraged free trade but in an ad hoc fashion and deteriorated much the same way - States figured that they could implement protectionist policies first b/c others would be importing from them while they had protected their own goods - Some countries chose not to adopt protective tariffs like Britain and Belgium - National Policy was accused of not being used as leverage to get a better deal - The CPR was used to make Canada independent from the US as before western provinces could only trade w/ the east via US railroads or overland along winding roads - To maintain volume of business after adopting protectionist tariffs which shrinks consumers, they needed immigrants - To continue economic growth country must have balanced resources so domestic market in Canada needed to grow thus making immigration policy important - Self-sufficiency was a goal for Canada compared to the US Domestic Politics: Cleavages on Trade - Canada was endowed with land whereas capital and labour was scarce - S-S theorem: land owners prefer free trade while industries wanted protection - Problem with how long the CPR took to be built; therefore CPR could charge high rates fo
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