The violent insurrection and angry mobs that stormed the U.S. Capitol earlier this month have sent shockwaves around the world, changing the conversation about global power and politics.
In this episode of Down to Business, we explore what the instability in the United States means for Canada and the North American regional economy.
Expert Insights: Laura Macdonald
We spoke with Laura Macdonald, Professor of Political Science at Carleton University, who shed light on the implications of U.S. instability for our country and region.
The Inheritance of Pre-Existing Conditions
According to Macdonald, the inauguration of Joe Biden as the new President of the United States only turns the page so much. She explained that Biden will inherit a country with pre-existing conditions, including political dysfunction and partisan gridlock, which will likely make multilateral cooperation more difficult.
The Challenges Ahead
Macdonald highlighted several challenges that Biden’s administration will face, including:
- Economic instability: The ongoing COVID-19 pandemic has exposed deep-seated economic weaknesses in the United States, which will require significant investment and policy reforms.
- Partisan gridlock: The extreme polarization of American politics makes it increasingly difficult to pass legislation, even on critical issues like infrastructure and healthcare.
- Rising nationalism: The Trump presidency has emboldened nationalist sentiment across the globe, which poses a threat to international cooperation and institutions.
The Impact on Canada
So, what does this mean for Canada? Macdonald noted that our country will need to navigate these complex global dynamics with caution. She emphasized that:
- Diversification is key: As the United States becomes increasingly unstable, it’s essential for Canada to diversify its trade relationships and invest in emerging markets.
- Regional cooperation: The North American regional economy requires continued cooperation between Canada, the U.S., and Mexico to address shared challenges like trade, security, and climate change.
- Preparing for the worst-case scenario: While there is hope for a more stable future under Biden’s leadership, it’s crucial that Canada prepares for potential worst-case scenarios, including increased economic uncertainty and rising nationalism.
The Way Forward
As we navigate this uncertain landscape, Macdonald emphasized the importance of:
- Diplomacy and cooperation: Building strong relationships with international partners will be essential in addressing global challenges and promoting stability.
- Investing in innovation: Canada must continue to invest in research and development, particularly in areas like clean technology, biotech, and artificial intelligence.
- Fostering a more inclusive economy: As the world grapples with rising inequality and economic uncertainty, it’s essential that Canada prioritizes policies that promote social mobility and address the needs of all citizens.
In conclusion, the instability in the United States poses significant challenges for Canada and the North American regional economy. However, by working together, investing in innovation, and promoting a more inclusive economy, we can build a brighter future for ourselves and our neighbors to the south.
Recommended Reading
- ‘Recovery already within sight’ Why this economist is optimistic about Canada when others aren’t: A fascinating article exploring the latest economic trends and forecasts.
- How COVID will change how small business is conducted: Insight into the ways in which the pandemic has transformed the world of entrepreneurship.
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