Macdonald's National Policy

The National Policy was an economic policy put in place in 1879 by John A. Macdonald's government, it was purposed in the election  of 1878. It remained the basis of Conservative economic policy for many years -- Conservative Prime Minister Robert Borden would maintain the policy from 1911 to 1920, as would Prime Minister R. B. Bennett from 1930 to 1935.

 This policy consisted of 3 parts:

1. Protective Traits:
   To encourage the development of Canadian Industries; raw materials would come into the country less expensively. High import duties or taxes (called tarrifs) would be put on goods that Canadian industries could manufacture.These taxes make goods coming from other countries more expensive so more Canadian goods could be sold. The taxes would also help fund for the railway.

2. National Railway:
   The railway would bring settlers to the West and bring crops to the East.


3. Settlement of the West:
   Macdonald promised to help immigrants from other countries settle on the Canadian Prairies. These settles would buy the products of the Canadian Industries and grow wheat to be sold in Canadian cities.


 The people of Canada supported the idea of this National Policy, causing the re-election of Macdonald. This brought back the production of the Canadian Pacific Railway.

 

Sir John A. Macdonald's campaign poster for the election of 1878