Incoming U.S. President Donald Trump has taken to musing publicly about using “economic force” to annex Canada. The threat is so brazen that many are treating it as a joke, unable to accept that a United States President could hold such an economically existential threat over our heads.
But these comments are no joke, and Trump must be treated as a hostile actor to Canadian economic security. At the federal level, the NDP leader Jagmeet Singh, to his credit, has called on others to back his plan against Trump, which is to promise retaliation to any Trump tariffs, as well as restricting American access to minerals in Canada.
But these retaliations, however necessary, sidestep a major problem. We will not solve this quagmire with tariffs and Twitter posts. Rather, we need to wrestle with the cold, hard fact that 40 years of neoliberal capitalism in Canada have put us in this predicament where one president can so threaten our economic fortunes.
To truly resist American aggression, we need a solution that includes nationalization, economic planning and worker ownership—in other words, socialism.
Canada’s past offers some lessons and ideas about how to do this. Canadian leftists once offered a vision of a robust state and strong labour unions as a method of building an independent democratic socialist society. It’s time to revive that.
Public ownership as a bulwark against American empire
Part of the issue is that Canada’s economy is so deeply integrated into the U.S. economy.
When American and foreign capital own so much of Canada’s economy—especially in strategic industries like energy, mining, and heavy manufacturing—we can’t be surprised that an American president would use that as leverage.
There was a moment nearly 60 years ago when it appeared Canada was learning the correct lesson about building a more self-reliant economy. Led by left-wing intellectuals and labour activists within and beyond the NDP, there was an effort to not only study the extent and effects of American economic control of Canada, but also push back against it.
Amid the publication of the Watkins Report, which detailed for the federal government the implications of foreign ownership of our economy—revealing for the first time just how deeply Canada was economically controlled from abroad—a flurry of left national organizing was happening.
A card for Petro Canada, a crown corporation intended to increase domestic control over oil industry. Photo: Screenshot, CBC
Leftists pressured Pierre Trudeau’s Liberal government to emphasize greater control over the Canadian economy, including the nationalization of key industries, energy chief among them. (It has to be acknowledged that these left nationalists often, though not always, failed to reckon with the importance of Indigenous rights and self-determination.) They eventually won successes like the formation of publicly-owned Petro-Canada, achieved only because NDP leader David Lewis demanded it as part of a deal during a Trudeau minority government in 1972.
But these early gains quickly fell apart as Canada and most of the western world embraced privatization and neoliberal capitalism. The Mulroney and Chrétien governments empowered American and private ownership, but more importantly, Trudeau Sr.’s initial approach was from the beginning too preoccupied with empowering Canadian capitalists.
We need to learn from these historical failures: Canada should challenge American dominance by asserting public control of all strategic resources and production.
Canada has tried privatization and integration into the American economy for 40 years. It has failed to protect Canada’s economic security, as Trump’s threats make abundantly clear.
This is where the NDP needs to develop some fortitude and start saying it plainly: capitalism has failed us. Socialism can put us on another path.
Reviving economic planning
It’s clear that Canada needs public ownership and long-term vision in order to be able to stave off threats like the ones Trump has started issuing.
But achieving these goals is not a matter of snapping our fingers. It requires thoughtful economic planning to challenge the American hold on our economy.
Indeed, it was the NDP in its earliest days in the 1960s that argued alongside labour unions that unless we planned for our economic future, we would be unable to stand up to the United States when the time came. Well, the time has now come, and we did not plan ahead.
At the time, the NDP and labour unions demanded not only crown corporations like the aforementioned Petro-Canada, but also a central crown corporation to invest in projects in return for equity and control by Canadians, who could assert economic goals in a way capitalists would never allow.
They also argued that this planning could better build an east-west economy to reduce dependence on trade with the United States. The goal was never, of course, to eliminate trade with our southern neighbours, but to avoid our current predicament.
Sadly, all this was either rejected by Liberal and Conservative governments, or quickly dismantled in the wave of government sell-offs in the 1980s.
Trump has threatened, for example, to cut off Canada’s access to the American auto manufacturing market. Many components are built in Canada, and shipped south for manufacturing. More beginning-to-end production in Canada would lessen the power of Trump’s threats.
Countries like Norway have been much more foresightful, creating nationalized energy industries that have made their citizens wealthier than Canadians, all while having funds in place to better plan their economic futures. Here, on the other hand, and to quote the old western bumper sticker, we repeatedly “pissed away” oil booms.
The solution isn’t to just surrender to maple-clad capitalists instead of Americans, though. Galen Weston isn’t going to protect the Canadian working class any more than a tycoon from Texas.
There have been positive glimmers of NDP political action here, with the NDP leading the charge in taking on the billionaire class by hauling them before parliamentary committees to question them on price gouging. They’ve been vindicated in his attacks on Canadian grocery capitalists by a recent CBC investigation that found they’ve been ripping Canadians off by overcharging for meat.
But parliamentary committee hearings are not enough. Yes, we need to take on the corporate welfare bums, but we also need to address the question of ownership and planning directly.
A bold socialist vision for the future
One misconception about socialism is that it is concerned only with government control.
A socialist platform must include worker control of industry, from universal unionization to workers directly owning the means of production in their workplace—the broadest possible economic democracy. This means collective ownership of businesses, greater worker control, and residents having real input into how our economy operates.
A robust democracy that extends beyond voting once every few years and into exercising collective control on a regular basis is critical in building defenses against American dominance.
Today, working-class people are alienated from the decisions, products, and profits their work generates. Because of this, Canadian workers have little direct control over their own destiny, either within Canada or in our relationship with the United States.
Only by restructuring our society so that Canadians have some ownership over their workplace, economy, and country can we build a bulwark against Trump’s attacks.
Crucial to remember, however, is that resisting American dominance via economic nationalism cannot be allowed to sidestep the pursuit of justice for Indigenous peoples. They must be essential partners in building a democratic society and economy, including by ending our own Canadian colonial aggression with real land restitution.
This is a time for democratic socialism to shine again, and the NDP could seize the opportunity. Recent polling shows a supermajority of Canadians reject Trump’s plans, and New Democrats are almost unanimously opposed.
The Conservative Party base includes many wishing to become American, and the Liberal Party’s commitment to neoliberal capitalism leaves them unable to respond with any coherent plan beyond waiting for a Democratic president to win the White House again.
In the immediate term, the NDP has a priceless chance to seize the anti-Trump moment by standing up for workers and jobs. But this isn’t nearly enough: the party must make fundamental structural changes to actually and meaningfully embrace a leftist vision.
The NDP becoming a champion for a bold socialist future must be the path forward.
“It’s about getting to the bottom of things. It’s about unveiling who has the power and what they’re doing with that power.”
Linda McQuaig, journalist and author
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lol what… Socialism is not the answer. Stop pretending that it is and using Trump as a tool to spread misinformation.
Dumbest artical Ive seen in awhile. What the hell are you smoking?
Harsh but simple solutions even Donny could understand.
Bank of Canada stops accepting/handling US currency. All transactions, deposits, current and future must be converted to bullion or Canadian currency.
Open negotiations to lease Port Hardy to the Chinese for a naval base.
One surface, one maritime, one airport border crossing per province, close all the others.
Nationalize all US holding in Canada. Remburse the owners in CND at par, 50 cents on the dollar
Cut Pt.Roberts off from the grid and transportation.
Nationalize all Norad bases on Canadian Soil.
Set demolition charges for worst case, then close the St Lawance Seaway to US flagged traffic. 100% FOB tarrif on other vessals for all goods to or from US ports
We are not for sale to the new Führer Sam anymore.
First of all why are people lying
this is not the real Trump they are trying to kill the real Trump he is a makeover.
I read Avi Lewis’ comments and he brings me to tears. One can lambast Capitalism and preach the benefits of Socialism until the cows come home and such talk is NEVER going to get the support of the vast majority because the word ” Socialism” is a dog whistle which shuts the ears and closes their minds. Avi’s words contain everything needed to get where we want to go. Unfortunately, he and almost every other don’t realize it.
What we really need first off is not any particular economic system, but REAL democracy. Once a society has achieved this, it will be up to the people to decide what type of economy they want. It is always true that whatever sort of economy a nation enjoys is decided by those who hold the power. Capitalism, as currently practiced, reflects the fact that moneyed interests rule. It’s never a question of regulation or no regulation but WHICH regulations are in effect. Keeping that in mind, it is equally valid to argue that what one may refer to as socialism is simply another form of Capitalism. Just as what is currently referred to as capitalism could just as legitimately be called a form of socialism. As a matter of fact, it is a much more valid description since the super wealthy have been feeding out of the public trough for decades.
The bottom line: campaign on seeking real democracy where everyone, not just those with money, have a real say in governing the country. And suggesting that what is needed is a form of capitalism which includes a recognition that a giant corporation, which owns or did own practically everything that exists whose shareholders include every single Canadian citizen and the sacred duty of our elected representatives is to service the best interests out the shareholder and certainly not the interests of any other power groups.
And we have so many shining examples of where this proposed road leads, Cuba, Venezuela, Birma come to mind. No thank you, we prefer to stick to today’s free market system as imperfect as it may be.
Israel, India, and the United Kingdom all adopted socialism as an economic model following World War II.
Socialism is guilty of a fatal conceit: It believes its system can make better decisions for the people than they can for themselves.
Socialism has failed in every country in which it has been tried.
This article is the best thing I have read since Trump came on the scene. Yes, socialism, or if you wish, democratic socialism, is the answer. I think Jagmeet Singh would be happy with this idea too.
Great article! I wish we had followed D. Lewis & T. Douglas’s vision back in the 60’s.
I would like to know, how we can turn the tide at this late date. When D. Trump has just been elected.? How can we convince enough voters before our next election, to vote NDP & not Conservative. In the hope of saving our country.?
The idea that the NDP would return to its CCF roots and provide Canadians a socialist option has popped up intermittently for decades. It is a pipe dream. It can be argued that the Tommy Douglas era was the closest the NDP ever came to being socialist. The Wafflers criticized the Lewis led party for straying from socialist principles. Broadbent identified himself as a socialist when he ran for leadership of the party. Once established as leader he announced that he preferred the label “socio-democrat.” Layton had “socialism” removed from the body of the constitution. The current party leadership strive to be more progressive Liberals. Suggesting that the NDP is the best possible socialist option actually serves to delay the obvious. We need to form a new socialist party now.
Yes, there’s a real need for socialism to protect commonwealth and our well being.
Neoliberal capitalism, the FIRE economy (financial, insurance and real estate), supports the elite oligarchs and the deep state with Big Media controling the issues in voting.
Two of my concerns are the age old “divide and rule”, keeping us divided and apart, working against each other, rather than finding common ground against corporate colonial rule.
And the corporate structure needs reform. Currently, corporate liabilities are eliminated, except in the case of fraud. We must expand corporate responsibilities to include labor, community, environment, not just shareholder profits.
Community is our first line of defense. I’m a snowbird with dual citizenship, living near two Bays, Fundy and Mobile.
It’s snowing here in lower Alabama, a rarity I haven’t seen since 1962. One neighbor brought me food and another reached out to see if all was well. Yes, I’m fine, (I’ve lived in snowy New England for decades of professional life).
I know here in the US, voting needs to be reformed, by limiting the money that can be spent. Corporations are free to spend money, like freedom of speech. Both main parties support neoliberal economics and neo conservative foreign policies. Voters here have lost control, though Dems were dammed surprised.
In New Brunswick my neighbors are all important and very good to me. I try to find common ground and break barriers. It’s pretty easy when I complain against government, most agree!
I want to relay my support for the social economic policies needed to rebuild Canada’s economic structure. Allow me to expand on that premise. The only issue with promoting a socialist economic strategy as described in this article that I cannot agree with is promoting this concept via the NDP’s political party allegiance given to the highest bidder. To elaborate, they are conditioned to function as a capitalist entity with die-hard capitalist endeavors and any economic strategy to convert to worker owned industry would be opposed by those that have personal agendas that are geared to capitalist ideals. It would be a much easier undertaking if a new political party were to be formulated that is devoted and fully committed to adopting Direct Democracy where the majority of the country is on board with the concept of making Canada’s laws via referendum where the voting public decides whether a proposed law will be accepted or rejected, where the outcome is determined by general consensus. The bottom line is that if this is going to work, we need the majority of Canadians to unify as a political force to make this happen. For those that don’t understand this, read on!
To fix this permanently, so the neoliberals who promoted this make believe Free Market competition and phony economic growth through Capitalism as a means of achieving progress, it has been a complete failure. It has placed Canada’s industrial base in a position as an endangered and nearly extinct memory. As a result, our economy is hanging on the coattails of American corporations where they want to enslave their employees and at the burp or hiccup of a downturn in the economy, mass lay-offs take place. If worker owned co-operative companies is attempted as a half measure by getting the NDP to kick this idea around, it will most likely fail, as it did when the NDP and Social Credit parties merged. The NDP has failed miserably across Canada, provincially and federally, and I would trust them as much as I would trust Trudeau and Singh to continue their reign of self destruction along with the rest of Canada. With a new political party geared to promoting and adopting Direct Democracy by using Switzerland’s political structure as a template to build our own made in Canada true democracy, the dysfunctional Senate would no longer be required, for the voting public would be the deciding factor on the laws of the land, not a biased collection of membership, party appointed allegiance providers, to serve the political party in power with corrupt legislation, which is what has gotten Canada and working Canadians where we are now; A COUNTRY BEING PILLAGED BY THE RULING CLASS!
As a person that has studied Switzerland’s political structure at length, the above endorsement is only a glimmer of what is needed but it is with hope that I promote this concept that I have endeavors of achieving for Canada if Canadians help to spread the word, “If you want change for the purpose of providing a future for millennials, we need to start working toward that goal now. The longer it is procrastinated, to more difficult it will be to make it happen. Our current system has failed working class Canadians for 158 years of Autocracy, dressed up to look like Democracy. Let’s build a real Democracy by the people, for the people, of the people so future Canadians will have a means of career jobs, with high quality healthcare, education and a stable economy for Canada’s citizens. This country belongs to its citizens not the corporatocracy. We don’t need to crucify the corporatocracy but they can no longer lead with propaganda ideals. Canada’s wealth belongs to Canadians, not one percent of its population.