How could Hausmann and Protzer's prescription affect the Government of Canada's economic strategy?
The Government of Canada may need to adopt a federally directed industrial policy The research advocates for a federally directed industrial policy, suggesting that the Government of Canada move beyond current diversification efforts. The authors argue that Canada must develop a 'post-American economy' because it can no longer rely on the United States as a permanent trading partner. Specific recommendations include re-establishing control over immigration policy, addressing the housing crisis as an 'economic blockade,' and expanding high-value exports in pharmaceuticals, medical devices, and aerospace.
- Effect
- Mixed
- How direct
- Stated in the reporting
- When
- Within months
- The story
- Gone quiet
How it reaches Government of Canada
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Ricardo Hausmann and Eric Protzer published a prescription for Canada's economic future, drawing on research from Harvard University. The authors argue that Canada must develop a 'post-American economy' because it cannot rely on the United States market being permanent or politically secure. They suggest that diversification must begin by providing necessary infrastructure.
The full event1independent outlet -
The authors assert that Canada needs a 'post-American economy' and call for a federally directed industrial policy, similar to those practiced by Liberal governments from the days of Pierre Trudeau to Justin Trudeau. This policy would support the growth of high-value products in areas like pharmaceuticals, medical devices, and aerospace, while also addressing the housing crisis, which the authors label an 'economic blockade.'
1 report connects these two. Brind only summarizes; follow a link to read the reporting itself.
- theglobeandmail.com Oct 23
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federal government of Canada
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The facts so far
As reported. Each one links to where it comes from.
- The authors presume a future where Canadians can no longer count on the United States as a reliable trading partner.theglobeandmail.com
- Hausmann and Protzer call for a federally directed industrial policy.theglobeandmail.com
- The authors identify the housing crisis as an 'economic blockade.'theglobeandmail.com
- The authors recommend re-establishing control over immigration policy.theglobeandmail.com
Why it matters
The Government of Canada is currently pursuing a diversification strategy, as noted by the authors, but the prescription demands a much deeper, more interventionist approach. The recommendations challenge the current political landscape by advocating for specific government actions—such as forcing municipal governments to permit densification—that face significant political opposition.
This debate over the role of government in the economy is central to Canadian politics, pitting progressive calls for government housing programs against conservative preferences for cutting regulations. The authors' framework provides a detailed roadmap for how the government could shift its focus from simply diversifying trade to actively directing industrial growth and managing internal economic blockades.
What we don't know yet
- How will the Government of Canada balance the authors' call for a federally directed industrial policy with existing market-based approaches?
- What specific regulatory changes would be required to address the housing crisis as an 'economic blockade'?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
Reporting
- theglobeandmail.comOct 23
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