August 1, 2005
Our Free Market Past
Now that the United States and Canada are through celebrating their national holidays, and the official images of the two countries are fresh in our minds, a look back might help shape our perspectives.
Two years ago, Americans celebrated the bicentenary of the famed Lewis and Clark expedition of 1803 to explore the Northwest. This expedition was funded by the U.S. Congress, at the request of President Thomas Jefferson. Few people know that, whereas the U.S. government subsidized its westbound explorers, the Canadian West was explored by a private expedition paid for by private interests. Indeed, in Canada, during the 1770s, the North West Company and fur traders such as Alexander Mackenzie were moving their way to the Canadian West in search of profit, and without government money.
I think there is great symbolism to be found in that story. It contradicts the notion that U.S. history is all about private initiatives, and that Canada's history is nothing but a long succession of heavy government interventionism. This is simply not true. Actually, for many years, in many areas, it was the other way around. More and more distinguished scholars are showing us that it is a fabrication of our nationalist elites (and I mean both Canadian and Québec nationalists) that you cannot be a "real Canadian" or a "real Québecer" if you are opposed to statism and big government.
In fact, until the 1960s Canada had quite limited government. And, in many areas, it was more limited than the government of our neighbour to the south. Indeed, a quick survey of the last 100 years shows it was frequently the Americans who led the way with interventionist policies, with Canadians following afterwards.
Here are just a few examples:
You can find more details about those examples, and others, by reading William Watson's great book, Globalization and the Meaning of Canadian Life, published in 1998 at U of T Press.
Now, it is obviously a fact that in today's Canada taxes are high, the unions are strong (especially in Québec) and you have powerful interest groups who will fight any attempts at change. It is also undeniable that, under most indicators, governments in Canada (especially when you compare provincial governments with state governments) are bigger today than they are in the United States.
But what needs to be challenged is the claim that interventionist government, high taxes, protectionist policies and socialized medicine constitute the very fabric of our national identity. We should not accept any more the notion that anyone who believes that less government is economically beneficial as well as morally justifiable is, de facto, trying to Americanize Canada and, thus, would be some sort of traitor to the Canada nation. The reality is that this so-called "Canadian identity" based on government compassion (or socialism, to speak more clearly) was only invented in the 1960s and '70s.
It may seem hard to believe today, but Québec itself had one of the least interventionist governments on the continent until the Quiet Revolution. For example, when Roosevelt launched his New Deal there was consternation in Québec. Louis-Alexandre Taschereau, the Liberal premier at that time, referred to it derisively as "a socialistic venture bordering on communism."
And, despite all the propaganda to the contrary, there is still a strong tradition in Québec that favours individual liberty, personal responsibility and free enterprise. You won't see this if you only listen to the political or media establishment. But polling data tell us a different story. Consider the following:
All this is to say that free-market ideas are part of our Canadian heritage and of our Canadian identity. It's something to be proud of. And it's about time we started explaining to our fellow citizens, with patience, passion and reason, that you can be a true Canadian while wanting to reduce government control over our lives.
Michel Kelly-Gagnon is President of l'Institut économique de Montréal, a sister think-tank. This article originally appeared in The Financial Post on July 6, 2005.
Michel Kelly-Gagnon is a graduate of law from the University of Montreal and was admitted to the Quebec Bar in December 1994. After practicing law as a legal consultant to the Consulate General of France, he became Chairman of the Board of Formatrad Inc., a company which specializes in the in-house training of employees. He held this post until the summer of 1999 when he became the Institute's President. Mr. Kelly-Gagnon is an IHS (Institute for Humane Studies) Alumni, a member of the Board of Directors of the Montreal University Club, a member of the Mont Pelerin Society, a member of the board of Civitas, a group of philosophical discussion, and Chairman of the Board of the Institut économique Molinari.