Quote:
Originally Posted by optimusREIM
The economic returns would vastly outweigh any investment required in a short time.
|
That's not at all how the globalized economy works. Canada extracts natural resources then sends them elsewhere to be refined into higher value added products because it's cheaper that way, that's how it works.
People think that somehow Canada's going to take our raw resources like iron, lithium, and cobalt, and instead of sending them to China where they will be turned into an EV car that's sold for the equivalent of $30,000 CAD, we're going to suddenly build all the plant and infrastructure required to do it ourself? That same EV will then sell for $75,000 and for those of you familiar with how prices work, no one will buy it.
You can't just magically refine your own resources into higher value added products when it's already being done in China or India for a fraction a tenth of the price. Those products are fined much more cheaply, which then gets back to western markets at significantly lower prices. If you want to do it in Canada under the guise of "job creation", you have to swallow massive capital costs (who does the swallowing? Canadian consumers via higher prices or Canadian taxpayers via higher taxes to pay for government subsidies?) at great risk of having little to no benefit.
People just don't understand globalized trade in a small open economy. There's a reason it doesn't make economic sense to take our raw resources and refine them domestically - it's because it's cheaper to get other countries to do it, then buy back the higher valued output at a cost that is cheaper than what it would take to do it ourself. Why unnecessarily disturb this? So we can get more slightly-above average paying jobs for high school drop outs on factory floors, steel mills, refineries, and smelters?