POLI 211 Lecture Notes - Lecture 16: Classical Liberalism, Price Drop, Parliamentary System
17 May 2018
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Caada’s Natioal Poliy- Protection as a Development Strategy
How models and theories will explain the protectionist policy in Canada in particular.
The Liberalization in the 19th century:
Classical liberalism spreads in the mid-1800s: free trade all over the developing countries
Elgin Treaty 1854- notion that u should have a free trade between Canada and US
American Civil War: U.S. introduces tariffs, north American trade system went in a different
trajectory. New England was the area industrializing first. Civil war eliminates the southern
perspective.
First Great Depressio s- Classical Liberal ideas challenged- improved rail system, ship
syste, prie drop, ueployet, thus lassial lieralis as halleged, ad that’s here
protectionism emerged.
Canadian overtures on trade rejected by U.S.
Caada’s Edoets i the Late s:
Caada as’t idustrialized, as it as largely agriultural, ot uh apital per perso.
Canada is relatively poor in capital and labor, rich in land
Reflected in content of trade (exports food, imports manufacture)
Caada’s Coparatie Adatage:
-Political predictions from economic models:
Stolper-Samuelson: urban/ rural cleavage- urban demanding protectionism, land can produce
things which are valued abroad, thus free trade is preferred.
Sector-Specificity: land-intensive agriculture vs. everybody else. Canada was producing wheat,
but not a lot.
-Who has political power? Now think ow those actors are organizing, the easier group to
organize, the owners of capital are the ruling
-Parliamentary system; single- member districts: men voting, not women yet,
The Election of 1878:
John McDonald was the winner,
Liberals vs Tories
Liberal Government had failed to get treaty with US
Sir John A.Mcdonald offers protectionism, used this to win and remain his seat.
Selling the National Policy:
-Three elements to gather broad support: -protective tariffs;
-Infrastructural development (the CPR), replacement for intl trade by having more internal
trade, infrastructure between different regions which required a rail road; -Settlement of the
western provinces- to have a specialization occurring,
The National Policy in Place:
-Legislation begins in 1879—tariff imposed first
-CPR rosses the otiet, ut it’s a oopoly
-Biggest flaw? No support for immigration, just poor and unskilled people, thus not enough of
labor
-By 1890s, protectionist tariff without the promised balanced development
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Ca(cid:374)ada"s natio(cid:374)al poli(cid:272)y- protection as a development strategy. How models and theories will explain the protectionist policy in canada in particular. Classical liberalism spreads in the mid-1800s: free trade all over the developing countries. Elgin treaty 1854- notion that u should have a free trade between canada and us. American civil war: u. s. introduces tariffs, north american trade system went in a different trajectory. First (cid:862)great depressio(cid:374)(cid:863) (cid:894)(cid:1005)(cid:1012)(cid:1011)(cid:1004)s(cid:895)- classical liberal ideas challenged- improved rail system, ship syste(cid:373), pri(cid:272)e drop, u(cid:374)e(cid:373)ploy(cid:373)e(cid:374)t, thus (cid:272)lassi(cid:272)al li(cid:271)eralis(cid:373) (cid:449)as (cid:272)halle(cid:374)ged, a(cid:374)d that"s (cid:449)here protectionism emerged. Ca(cid:374)ada (cid:449)as(cid:374)"t i(cid:374)dustrialized, as it (cid:449)as largely agri(cid:272)ultural, (cid:374)ot (cid:373)u(cid:272)h (cid:272)apital per perso(cid:374). Canada is relatively poor in capital and labor, rich in land. Reflected in content of trade (exports food, imports manufacture) Stolper-samuelson: urban/ rural cleavage- urban demanding protectionism, land can produce things which are valued abroad, thus free trade is preferred. Canada was producing wheat, but not a lot.
