Buy Canadian: A Misguided Blow Thesis

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Canadian farmers defend the government's protectionist policies for its corn and dairy farmers because of the agricultural heavy subsidies in the U.S. For these products. However, many Canadian citizens claim that this policy is, in effect, a lump sum or regressive tax with an unduly burdensome effect upon their wallets: by making corn or dairy products more expensive through artificially inflated prices, they must pay more at the cash registers for food. Poor people traditionally pay a larger proportion of their income in food, hence the extremely regressive nature of the de facto tax through subsidization.

These subsidies do not function technically as an excise tax, which usually taxes cheaper imported goods, but they can be just as damaging to the consumer. While the U.S. may have not treated Canada entirely fairly, regarding its recent policies, Buy Canadian protectionism has not shown a demonstrable improvement for Canadian firms and has negatively impacted the life of the Canadian consumers.

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While 'Buy Canadian' may be a noble voluntary sentiment, it does not make economic sense as the policy for the Canadian government. Regardless of the Buy U.S. provisions of the stimulus package, the bill "will benefit Canada because of the positive impact it will have on the American economy on which so much Canadian trade depends" said one liberal Canadian think-tank (Perkel 2009). "The overall benefit of the stimulus plan is greater than the marginal cost to Canada of the Buy American preferences" (Perkel 2009).

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"Buy Canadian A Misguided Blow" (2009, November 21) Retrieved April 29, 2025, from
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"Buy Canadian A Misguided Blow" 21 November 2009. Web.29 April. 2025. <
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"Buy Canadian A Misguided Blow", 21 November 2009, Accessed.29 April. 2025,
https://www.aceyourpaper.com/essays/buy-canadian-misguided-blow-17233
   

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