In their new book Canada After America: A Strategy for Prosperity in a Changed World, Harvard economists Ricardo Hausmann and Eric Protzer argue that Canada must rethink its economic reliance on the United States. The authors warn that deep political polarization in the U.S. makes it an unreliable trading partner, forcing Canada to diversify its economic relationships. They emphasize that the goal is not to abandon the U.S. but to reduce dependence on it.
The book, published by Sutherland House Books, draws from the authors' research at the Harvard Growth Lab and is the focus of the 2026 McGill Max Bell Lectures. Hausmann and Protzer advocate for a federally directed industrial policy to support high-value exports in sectors like pharmaceuticals, medical devices, and aerospace. They also highlight the need for a tax system that rewards success at all levels.
Canada's competitive advantage lies in its skilled immigration, but the authors warn that recent policies under Justin Trudeau have eroded public trust. They call for stricter immigration controls to re-establish that trust. Additionally, they identify the housing crisis as an economic blockade, driving out younger workers and essential skills.
The authors acknowledge the challenges in implementing their recommendations, including political resistance and regional tensions. However, they believe Canada's high level of trust among citizens can help overcome these obstacles. They conclude that Canada's future depends on proving its model can deliver prosperity, openness, and innovation without small-country fatalism.