Rebuilding Canada’s Technological Infrastructure: The Strategic Role of Tariffs

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In the contemporary economic landscape, where global dynamics play a significant role in shaping national economies, Canada stands at a pivotal juncture. The liberal policies of the past decades, championed by parties like the Liberal Party of Canada under leaders such as Prime Minister Justin Trudeau, Finance Minister Chrystia Freeland, and Environment Minister Steven Guilbeault, have been critiqued for weakening Canada’s industrial and technological base. This critique isn’t just about economic metrics; it’s a reflection of national security and sovereignty. As Canada grapples with these challenges, the conversation around tariffs and taxes becomes not just pertinent but essential.

1. The Economic Foundations and Fiscal Tools: Taxes and Tariffs

Taxes and tariffs, though both fiscal tools, serve fundamentally different purposes. Taxes, whether levied on income, property, financial assets, or consumption, are the bedrock of governmental revenue. They finance the quintessential functions of the state such as healthcare, education, and infrastructure. On the other hand, tariffs are primarily seen as protective measures for domestic industries against foreign competition and as a tool to balance trade deficits. In the Canadian context, where decades of prioritizing service over manufacturing have eroded the country’s industrial base, the strategic imposition of tariffs emerges as a tool of economic rejuvenation and defence against global economic encroachments.

2. Strategic Tariffs: Protecting and Empowering Canada

The proposal of imposing significant tariffs, such as the discussed 50% on semiconductors, beckons a critical evaluation. This tariff does not merely aim to add to the government coffers but seeks to catalyze the development of domestic industries that have been neglected. In an era where semiconductor production is a cornerstone of technological advancement, Canada’s lack of substantial production capacity is a glaring vulnerability. By imposing such tariffs, Canada could potentially incentivize the establishment of semiconductor manufacturing on its soil, thus reducing dependency on foreign tech giants and mitigating national security risks associated with such dependencies.

However, this approach must be nuanced. The benefits of protecting nascent industries through tariffs can be substantial, but they come with the risk of increased costs for consumers and businesses in the short term. Furthermore, they require a robust policy framework to support the growth of these industries through investments in education, research and development, and infrastructure — areas that have seen chronic underinvestment.

3. Pierre Poilievre’s Role and the Firewall for Canada’s Economy

Conservative leader Pierre Poilievre’s advocacy for tariffs is seen not just as an economic measure but as a strategic necessity to undo the damages inflicted by the current liberal administration. This includes tackling the massive federal debt and restoring the health of the industrial sectors. The role of tariffs here is twofold:

Protect the remaining industrial base from being completely eroded by international competition, particularly from nations with subsidized industries, subsidized currencies, slave labour, and…
Provide the government with the necessary revenue to fund the dramatic obligations created by the Liberal Party of Canada under Prime Minister Trudeau, WITHOUT resorting to INCREASING taxation of personal assets, without excessive taxation of registered financial accounts, without confiscation of registered financial accounts, without nationalization of resource companies assets in the prairies, without large home equity capital gains taxes, without home confiscation, without estate taxes, and without higher income taxes and without higher levels of fiscal stimulus (money printing) that causes a price rise in all items, all products and all services sold in the economy.

By redirecting government revenue to be earned from tariffs, instead of relying solely on traditional income taxation, Canada can generate the same capital while actively supporting and expanding its industrial and technological base. Unlike relying on income tax alone, which offers no real economic growth, with the same capital burden on people as they would get either through tariffs or through increased income taxation, this approach revitalizes the economy, boosts purchasing power, and increases job availability.

It also reduces the long-term damage to Canada’s future prosperity, and future growth rate potential, caused by the “reduced growth rate now available to Canadians” after PM Trudeau and Chrystia Freeland doubled the National Debt. Remember that the low debt to GDP nations can grow faster. This strategy provides a vital pathway to restore economic health, economic productivity, and economic velocity and growth rate, and secure a prosperous future for the nation once again.

4. The Broader Implications and the Path Forward

As Canada considers these tariffs, it’s essential to engage in a broad, transparent discussion that involves industry experts, policymakers, and the public. The goal should be to develop a comprehensive strategy that includes tariffs but is supported by other policies that promote innovation, competitiveness, and sustainability. The question of semiconductors is particularly pertinent. If Canada aims to become a new hub for semiconductor manufacturing, it will require more than tariffs…

— it will need a strategic vision that includes partnerships with global tech leaders, substantial investment in tech education in greater proportion than historical levels as a percentage of all graduate types (perhaps a 200% boost of STEM degrees with a reduction in other degree types), and a regulatory environment that supports rapid innovation.

In conclusion, while the strategic use of tariffs can serve as a powerful tool to protect and rejuvenate Canada’s economic landscape, they must be part of a larger, well-thought-out economic strategy that looks at more than protectionism policy. This strategy should aim to position Canada as a leader in innovation and industrial growth, leveraging both its rich resources and its human capital. With such combination of policy, tariffs be justified, not just as a fiscal tool, but as a cornerstone of a broader national revival strategy.

5. Rebuilding Canada’s Technological Infrastructure: The Strategic Role of Semiconductor Tariffs

In this context, the implementation of a 50% tariff on semiconductors is a strategic move that resonates deeply with those of us in the engineering and technological sectors. Many of our professionals are trained in electronics engineering technology, computer engineering technology, and computer science, working with platforms like integrated circuits, micro-controllers, and embedded systems. However, the advanced semiconductor design capabilities, like those of Intel or NVIDIA, remain largely out of reach for Canada at present, and it has been this way as far back as we can remember to 1997. This tariff could be laying the groundwork for Canada to foster a moderately advanced, and eventually, a highly advanced semiconductor industry in the future. While Canada’s current chip production maturity may lag behind that of the U.S., Japan, South Korea, or China, this move by Pierre Poilievre signals a critical shift towards rebuilding Canada’s advanced manufacturing sector.

5.1 Rebuilding Canada’s Technological Infrastructure

After decades of neglect, it is refreshing to see a politician seriously investigating what is needed to position Canada as a competitive economy in the 21st century. The emphasis on supporting STEM professionals and funding specialized programs is a step in the right direction, helping to ensure that Canada can develop the necessary hardware and software to thrive. This approach recognizes that the future of Canada’s economy depends not just on resource extraction or administrative services, but on building a robust technological infrastructure that can compete on the global stage.

5.2 Challenges and Misallocation of Resources

The past decade has seen an alarming misallocation of national capital, with over $2.5 trillion funneled into administrative office funding and non-tangible work, such as the $1 trillion allocated in 2021 and $1.5 trillion directed to 86,000 charities. While these funds may have supported various functions, they have not contributed to the tangible growth of Canada’s technological or industrial capabilities. This massive expenditure has not produced new technologies, nor has it built the specialist workforce needed for Canada to thrive in the 21st century. Instead, much of this capital has been absorbed by unregulated office functions and paperwork, resulting in little material progress for the nation.

5.3 Strategic Impact and Future Outlook

In contrast, the 50% tariff on semiconductors represents a decisive action that could have far-reaching implications for Canada’s economic future. By imposing this tariff, Pierre Poilievre is not just adding to government revenue but is making a bold statement about the direction Canada needs to take. This move signals a commitment to reversing the trend of industrial decline and re-establishing Canada as a hub for advanced manufacturing and technological innovation. It recognizes the critical role that semiconductors play in the modern economy and the importance of developing domestic capabilities to reduce reliance on foreign technology.

Moreover, this tariff could serve as a catalyst for broader policy changes that prioritize investment in education, research and development, and infrastructure. These areas have seen chronic under-investment, yet they are essential for building the foundation of a modern, competitive economy. By focusing on these critical areas, Canada can begin to nurture the next generation of STEM professionals who will be at the forefront of developing the technologies that will define the future.

In this light, Pierre Poilievre’s decision to implement the semiconductor tariff is more than just an economic policy; it is a strategic initiative aimed at securing Canada’s place in the global economy. It represents a shift away from policies that have prioritized short-term gains and administrative expansion towards a long-term vision of national prosperity built on technological and industrial strength. Through this seemingly simple act (which is not going to cost anyone anything, certainly not 2.5 Trillion, but $0.. this is called using brain in leadership), Poilievre is arguably doing more to secure Canada’s place in the global economy than the vast sums of capital that have been spent with minimal impact or perhaps seven absolutely no impact on our professional development, technological development and industrial development.

As Canada looks to the future, it must continue to explore policies that support the growth of its industrial and technological base. The 50% tariff on semiconductors is a step in the right direction, but it must be accompanied by a broader strategy that includes substantial investment in STEM education instead of resources and investment into non-STEM education, research and development, and infrastructure. Only by taking these steps can Canada hope to become a leader in the global economy and ensure that it remains able to participate in 21st century global economy and competitive in the 21st century markets.