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Macdonalds National Policy



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The policy quickly became one of the most central aspects of Canadian politics, and it played an important role in keeping the Tories in power until , when Wilfrid Laurier and the Liberals campaigned on a promise to keep the National Policy in place. While many Liberals still supported free trade, the National Policy was too popular in Ontario and Quebec for it to end.

When the Liberals campaigned on free trade in the election , they lost the election. Macdonald's national policy became a huge public issue once the Liberal government led by Alexander Mackenzie failed to raise the budget on tariffs in Once Macdonald came back into power in , a higher tariff was introduced in the budget of Canada and business. The purpose of high tariffs were solemnly for the expansion of the base of Canadian economy and to project a more confident country for development in Canada. Tariffs were raised for goods and services on a majority of manufacturing goods that were made outside of Canada.

The raise of tariffs on foreign manufactured goods was to protect Canadian made products and Canadian manufacturers. Although the policy was popular in central Canada, it was extremely unpopular in western Canada. This opposition to the National Policy played an important role in the rise of the Progressive Party of Canada in the s. In its platform, the " New National Policy ", it advocated free trade. At the same time, the United States was lowering its tariffs. Economic integration surged during World War II , and in the automobile industry in the two nations became fully integrated.

The assessment of the National Policy is mixed. In general, economists argue that it increased prices and lowered Canada's efficiency and ability to compete in the world. By not becoming merged into the larger, more efficient American economy, Canada built too many monopolistic firms and too many small inefficient factories with high prices for consumers.

Historians tend to see the policy in a more positive light by viewing it as a necessary expense to create a unified nation independent of the United States. There was, however, a boon to the citizens as there was no income tax, making the slightly higher price of manufactured goods easier to bear. In the years right after the policy was introduced, Canada experienced the same type of economic boom that many other nations experienced, as well as the construction of a manufacturing base and the development of the nation, which is generally what the Tories and economic nationalists use to justify the policy. However, Canada also suffered a net population outflow, as more people emigrated from Canada usually to the United States than arrived as immigrants.

This population overflow was initially a result of the success in the National Policy. The National Policy took a broader perspective for the Conservative party, it advanced the policy with its larger development strategies. The Canadian Pacific Railway and the Dominion Lands Act provided new immigration policies and easy transportation of immigrants. After Wilfrid Laurier led the Liberal Party to power in the election, the Liberals adapted to this governing system and to the principles of the National Policy. Tariffs stayed at high rates. Laurent beginning in the 's that protectionist tariffs rates began to be cut. Eden and Molot argue that there have been three national policies in Canada: the "National Policy" of defensive expansionism, —; compensatory liberalism, —81; and market liberalism, starting in The defensive expansion phase relied on the tariff, railway construction, and land settlement to build the country.

The second national policy combined a commitment to the GATT system, Keynesian macroeconomic policies, and the construction of a domestic social welfare net. They argue for a fourth policy called "strategic integration. From Wikipedia, the free encyclopedia. This article includes a list of general references , but it remains largely unverified because it lacks sufficient corresponding inline citations.

Please help to improve this article by introducing more precise citations. December Learn how and when to remove this template message. Organizations and media. The Canadian prairies : a history Student ed. Toronto: University of Toronto Press. ISBN OCLC The Canadian Encyclopedia. Retrieved August 20, Categories : Economic history of Canada Economic nationalism. Hidden categories: Articles lacking in-text citations from December All articles lacking in-text citations.

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