QUESTION: What do you think of Trump’s proposal that Canada become the 51st State?
Rob
ANSWER: If we are talking about economics, then yes, it would be better for Canada to merge with the USA for its own benefit. The provinces in Canada have trade barriers among each other. That would be illegal under US law, and Canada’s economy would be much better off. In addition, the mortgage market would change overnight. Where Canadians cannot get long-term mortgages, then they could, and they would be cheaper. However, I would not see Canada as the 51st state, I would see each province as a state retaining their cultural differences. They would also benefit from a unified currency with the US dollar. Canada’s economy would boom for now, and they could sell everywhere without trade restrictions. This would be like creating the euro. There would be no FX risks.
Our computer projects that the only windows of opportunity for such a merger are 2026 and 2028. Historically, this is not some crazy idea of Trump’s. The idea of merging the US with Canada has been around since the American Revolution. If we look at the Articles of Confederation back in 1777, there was even pre-approval for the admission of the Province of Quebec (previously known as Lower Canada) to the United States as they were anti-British.
