National Policy

The National Policy was a Canadian economic program introduced by John A. Macdonald's Conservative Party in 1876. After Macdonald led the Conservatives to victory in the 1878 Canadian federal election, he began implementing his policy in 1879. The protective policy had shown positive responses in the economy with new industries flourishing Canada's economy in the 1880s. John A. Macdonald combined three elements as a strategy for the post-Confederation economy. First, by calling for high tariffs on imported manufactured items to protect the manufacturing industry. Second, by calling for a massive expansion of physical infrastructure, such as roads and railroads. Finally, enabled and supported by the former two, by promoting population growth, particularly in western Canada. The building of the Canadian Pacific Railway, and the fostering of immigration to Western Canada. Macdonald campaigned on the policy in the 1878 election, and defeated the Liberal Party, which supported free trade. It lasted from 1879 until sometime in the early 1950s. The term National Policy originally aimed in aiding Canada to create a true country with a national economy. Macdonald figured that, while the political framework had been created in 1867, the economy would only last as long as the election lasted. To maintain a permanent strong national economy for the Confederation, Macdonald needed to engrave these factors for the future of the economy. These means the future was relied upon Canada's development towards the West. Without east-west development, the Americans would over rule the west, taking away Canada's peace and order in economy and society. Over time, the term became associated with the entire Tory platform for developing the economy, especially increased immigration to Western Canada and the development of the Canadian Pacific Railway's transcontinental line. However, the National Policy also had hidden consequences for the economy of Canada. A barrier was created over the acceptance of products and goods that were allowed to pass into Canada.