Jan 31 2009
Sorry Canada, But I’m With Obama
NDP leader, Jack Layton, has been an outspoken critic of the recent budget unveil by Stephen Harper and the Conservative government. However, Layton has placed the onus on Liberal leader, Michael Ignatieff for supporting a budget which does little to help working families. According to Layton, the budget provides more corporate tax cuts, and does little to address grave concerns in areas, such as employment insurance, pay equity and infrastructure. The situation could possibly get worse for Canadians, thanks to policies south of the border. According to the legislation attached to the proposed U.S. economic stimulus package, steel and iron used specifically for building projects, must be produced at home and not abroad. This will especially hurt the steel industry in Canada, which heavily relies on exports to America.
As the Liberals and Conservatives are criticizing the Obama Administration for a possible breach on international trade laws, the NDP has taken a different approach. Instead of blaming Obama, Layton has criticized his government for having not instituted a “made in Canada” project similar to what our neighbours are preparing. Why not produce steel that can go towards building infrastructure and creating more jobs here in Canada instead of somewhere else. We’re told that’s protectionism, yet like most trade policies, the ones who are being protected are the corporate elites who use international trade to weaken domestic works and organized labour. I’m usually on my countries side when the U.S. government is accused of partaking in unfair practices, but this time i’ll make an exception.
That’s exactly the problem with protectionist policies. In a global economy, you can’t alienate trade partners with short term thinking. Why do you think that Obama and his team are already rethinking the wording and extent of the measures?
If you’re implying that this legislation will be modified to please the Canadian government, then you’re probably right. However, you speak of protectionism in broad terms. Let’s keep in mind that one of the reasons why the U.S economy is collapsing is because of the gigantic trade deficit. Americans consume plenty, yet produce little. This is exactly what the Multi-national corporations want, the ability to easily move production to areas where production is cheap and where governments are docile.