In a previous post, I outlined Justin’s immigration fraud and the cannabis solution. I received a few messages about that piece. One was an inquiry, the others were hate, and I’m disgusted and offended that anyone could disagree with me. They’re obviously more interested in promoting misinformation.
While the last post focused on Justin’s blatant corruption with the firm McKinsey, this post goes into greater detail regarding immigration economics. Even if the Trudeau government didn’t hand $66 million of taxpayer money over to a global consulting firm, even if he did use the immigration bureaucracy that already exists, we still have a problem.
Namely, Canada is undergoing a massive demographic shift and importing more people isn’t going to fix it. Fortunately, there is a solution, and yes, it’s a Special Economic Zone (SEZ). But I’ll explain in more detail how that works.
How We Got Here
Seeing the problem is hard when this is the first time we’ve encountered it. Since Canada’s inception in 1867, the federal government has had a broad, open immigration policy. And since the 1960s, there’s been general support across the political spectrum for an open-door immigration policy.
But let’s get into the weeds of it, for there isn’t just a single monolithic federal immigration policy.
Canada has a points-based immigration system, known as Express Entry, which allows skilled workers to immigrate to the country. Candidates are awarded points based on education, work experience, language proficiency, and age. The government invites those with the highest scores to apply for permanent residency.
But Canada also has programs for family sponsorship, refugees, and temporary foreign workers. The government sets annual immigration targets and regularly updates its policies to meet the country’s economic and societal needs, as determined by the federal bureaucracy.
Or at least once upon a time. Justin Trudeau has outsourced Canada’s immigration targets and policies to McKinsey, the global firm connected to the World Economic Forum. They want half-a-million new Canadians every year. Can Canada’s infrastructure handle it? Doesn’t matter.
Now, what kind of immigrants does Canada welcome? While Canada does have an Express Entry system for skilled workers, under Justin Trudeau’s government, the emphasis has been on family reunification and refugees.
But even if Canadians go to the polls this year and elect enough Conservative MPs for Poilievre to form a government, many of these skilled workers are already in their 30s and 40s.
Unlike the US, where young South Americans walk across the border. Or in the EU, where young migrants risk their lives crossing the Mediterranean. In Canada, immigrants arrive by plane. These aren’t your 20-something kids looking to make a better life. They are already-established adults looking to make a better life.
The difference? The older group doesn’t pay into the system as much before they retire. The net financial benefit of immigration goes out the window when an immigrant spends less time paying into the system than what they receive in old age.
Justin’s Immigration Fraud
The problem with Canadian immigration is that the arriving people are much older. Because of the government Ponzi schemes set up in the 20th century, all levels of the Canadian government need a higher birth rate. They’re not getting it from the current population.
So they ramp up immigration to fill in the gaps. But, as mentioned above, the problem of prioritizing family reunions and older immigrants effectively makes this economic argument irrelevant.
Furthermore, the government has actively ignored immigration corruption until recently. For the last twenty-three years, many people have been migrating to Canada to buy property.
And that’s it.
They want a Canadian passport and a spot to hide their assets. They don’t take jobs and tend to live elsewhere.
Combine this with the NIMBYism of local politicians, the anti-landlord policies of provincial governments, and the manipulation of interest rates at the federal level – and you’ve got a property bubble—people born in Canada who can’t even afford to live here.
Justin Trudeau announced new ownership laws so foreigners can only buy (most types of) property if they live here. Too little, too late, some critics say. Not to mention the unintended consequences.
It may be bad optics to have empty luxury houses in Vancouver. But the tax revenue from this system tells another story.
Not to worry, says the Justin worshiper. We can tax the tar out of Alberta. Never mind that we haven’t been putting the money into export infrastructure. Or Ottawa’s general anti-carbon attitude.
The fact is: the social safety net Ponzi schemes of the 20th century are unravelling. We always knew this would happen once the Baby Boomers started to retire. The difference is massive immigration isn’t going to solve these demographic issues.
If anything, they’ll spark cultural and ethnic issues, possibly questions about the nature of the Canadian state, the rule of law, and what constitutes Canadian culture.
Justin’s immigration policy is a fraud. Here’s how to fix it.
How Does a Special Economic Zone Work?
If you’re a regular reader, you know I promote Special Economic Zones (SEZ) as one way of liberalizing the cannabis economy.
For those who need a primer, an SEZ is a geographic area with economic and other laws that are more free-market-oriented than a country’s typical or national laws. Designed to increase foreign investment, trade, and economic growth, an SEZ in this context would have the supply chain in mind. Typically, incorporate hemp into our manufacturing processes.
SEZs often have relaxed regulations, lower taxes, and other incentives for businesses operating within their boundaries. This is what provides motivation. Real-world examples include the Shenzhen Special Economic Zone in China and the Jebel Ali Free Zone in Dubai.
A Cannabis SEZ in Canada to Combat Justin’s Immigration Fraud
SEZs tend to be more general, with no specific industry focus. These zones may offer a more favourable business environment for various companies and industries. But we can design SEZs to promote the development of a specific sector, like cannabis.
In this sense, the federal government (not run by Justin Trudeau) would create an SEZ specifically to attract companies in the cannabis sector and for manufacturing certain products.
Of course, SEZs aren’t a guarantee of success. A successful SEZ depends on various factors like the attractiveness of the incentives, the availability of skilled labour, and the overall economic climate.
But there are real-world examples. And not only in third-world countries.
For example, in the United States, there are several different economic development zones, such as foreign trade and empowerment zones. These zones offer tax incentives and other benefits to businesses operating within their boundaries.
Similarly, in Europe, some countries have established industrial and technology parks that offer similar benefits to businesses.
Indeed, this country already has several programs in place that are similar to SEZs. Canada has several designated Foreign Trade Zones (FTZs) areas within the country where businesses can import, store and process goods without paying specific duties or taxes.
Canada has also established various Regional Development Agencies (RDAs) and several Business and Innovation Centres (BICs), which are supposed to help businesses grow.
So this idea isn’t that far-out.
What Would a Canadian Cannabis SEZ Incentivize?
How could an SEZ counter Justin’s immigration fraud?
Consider how plastic manufacturers use fossil fuels in the production process and how hemp could replace it.
Right now, the primary raw material used to make plastic is a hydrocarbon-based compound called polymer, which manufacturers derive from natural gas or petroleum.
But plant biomass, such as cannabis-based material, can be converted into hydrocarbon-based polymers through a process called pyrolysis. Manufacturers can use this as a raw material for plastic production.
This is the advantage of a low-tax, regulatory-free environment like an SEZ. Entrepreneurs can figure out how to make hemp-based polymers easily replicable and profitable.
Think of what an SEZ could do with cannabis biomass:
Direct combustion: Entrepreneurs can burn biomass directly to produce heat and electricity. This is commonly done in power plants designed to burn biomass specifically or in combined heat and power (CHP) systems.
Gasification: Entrepreneurs can convert biomass into a gaseous fuel, such as syngas, through gasification. They can then use this gas can to generate electricity or as a feedstock for the production of chemicals and transportation fuels.
Anaerobic digestion: Microorganisms can break down biomass to produce biogas, primarily methane and carbon dioxide. Entrepreneurs can use this biogas to generate electricity and heat or to be cleaned and used as fuel.
Pyrolysis: Biomass can be heated without oxygen to produce bio-oil. Entrepreneurs can use this liquid fuel in internal combustion engines and boilers.
Biodiesel: Entrepreneurs can convert biomass into biodiesel through transesterification, which involves the removal of glycerin from fat. Entrepreneurs can use biodiesel in diesel engines to replace or blend with fossil diesel.
A Canadian SEZ doesn’t fix our demographic problem. It doesn’t erase Justin’s immigration fraud and corruption. But it does create hope for the future. An SEZ provides jobs and rewards the entrepreneurial spirit.
And with many communities in Northern Ontario losing their populations, an SEZ could be established in an area with roads and basic infrastructure already built.
If it doesn’t work, it doesn’t work. No harm, no foul. But there’s no sense in not trying.