Editorial

“Buy Canadian” – Chauvinism in the Service of the North American Monopolies

Large-scale layoffs in the auto and steel industries in Canada have given rise to a “Buy Canadian” chorus from the federal and provincial governments and various trade unions. Ironically, the same voices could be heard a couple of weeks ago condemning the U.S. Congress for its inclusion of a “Buy American” clause in the Obama administration’s stimulus package.

These calls to buy domestically produced products are presented as a “solution” to the economic crisis and as a way to save jobs. However, they are neither. In reality, they are thinly disguised calls for Canadian workers to line up behind the North American monopolies in their trade wars with the European and Japanese monopolies.

What does it mean to “Buy Canadian” when three-quarters of the Canadian economy is foreign-owned? What does it mean to “Buy Canadian” when most of the major manufacturing industries have globalized their production facilities and a product may contain parts manufactured in many different countries? For example, cars assembled in Canada contain parts from the U.S., Mexico, China and probably half a dozen other countries. Steel produced in the U.S. uses iron ore mined in Labrador. Production has become so internationalized that the whole concept of buying domestic has been rendered virtually meaningless.

Protectionism in the form of “Buy Canadian” or “Buy American” is not a solution to the current economic crisis. It can only lead to further exacerbation of the crisis and retaliatory measures by those competitors who find themselves shut out of markets. That, in turn, will lead to trade wars which eventually degenerate into shooting wars. This is certainly not a “solution” that favours the working class and people. Canada, which has an export-oriented economy, would suffer the most if protectionism becomes widespread. It can hardly afford to be promoting such a thing.

Despite what Harper and others are claiming, the crisis in Canada will undoubtedly be more severe than it will be in many other countries precisely because of its overwhelming dependence on exports to the U.S. This is the result of geographical, historical and political factors, not the least of which is the fact that the Canadian capitalist class has always subordinated itself to foreign capital – first British and then American. It has traditionally sold out the land and labour of the Canadian people for a quick buck. How will a “Buy Canadian” campaign alter that reality?

The solution to the current crisis and the solution to Canada’s vulnerable economic status are interconnected. Those who have created this mess in the first place – the monopoly capitalists (both domestic and foreign) – and the governments that serve them must be removed and an independent, planned economy must be established. The Canadian economy can then gradually become a self-reliant economy in which primary emphasis is placed on serving the needs of the working class and people, both at home and abroad. This has nothing to do with building a protectionist, insular economy. Such a thing has never been possible or desirable, least of all in a modern world. A self-reliant economy is one which has both a strong domestic market and strong trading links based on mutual benefit. Such an economy would not be devastated by an international economic crisis to the extent that Canada will be by the current one.


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