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View Diary: The American System (205 comments)

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  •  Federalist policies were reincarnated in Canada (2+ / 0-)
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    DBoon, alrdouglas

    The "American System", which had died with the ascent of Jackson, returned when Canada was being built.

    First, at the time of Confederation in 1867, the constitution enshrined federal control over banking and trade. Later, during the  election of 1878, John A. Macdonald repackaged the American System as the "National Policy"--high tariffs, high immigration to the West, and a railroad to provide the necessary economic infrastructure.

    It was a response as well the high US tariff barriers in the early 1870's, which had helped plunge North American into a severe recession.

    In the financial crisis of 2008, Canadian banks benefited from our early adoption of Federalist banking principles. Subject to tight regulations that are updated every 5 years, Canada's banks never lost money at any point during the crisis.

    Lower returns, lower risks.  The Canadian Way.

    •  Atlantic Canada has very little good to say (0+ / 0-)

      about the National Policy.  It cut off their natural trade routes to the UK and New England in favour of making us a market for central Canada.

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