Stories
The Rise and Fall of Capitalist Montréal
June 19, 2013
Amongst endless stories of corruption and decline, it is easy to forget how economically powerful Montréal once was. One time Montréal resident Olivier Ballou reviews a new account of growth and decline that, like the city itself, fails to grasp the importance of open markets for continued growth and prosperity
Stories

The Rise and Fall of Capitalist Montréal

June 19, 2013
Amongst endless stories of corruption and decline, it is easy to forget how economically powerful Montréal once was. One time Montréal resident Olivier Ballou reviews a new account of growth and decline that, like the city itself, fails to grasp the importance of open markets for continued growth and prosperity
Share on Facebook
Share on Twitter

 

The History of Montréal by: Paul-Andre Linteau

201pp.: Baraka Books, 2013

Reviewed by: Olivier Ballou

Next time you walk down rue Saint-Jacques in Montréal – the quaint touristy strip near the city’s famed Old Port – keep in mind that for a hundred years it was home to the largest concentration of wealth and power in Canada. Today, Montréal is better known for its cheap rent, street protests and strip clubs – poor but sexy. The History of Montréal tells the story of how the former “beating heart of a commercial and political empire” reached its current sorry state.

Linteau’s book is a straightforward and unexciting account of Montréal’s history – even its title is dull. The first half charts the growth of the former colonial outpost, replete with Iroquois raiders, a booming fur trade and the British conquête. Montréal’s rise is a testament to the dynamist worldview: unpredictable, organic and based on constant adaptation.

As world trade expanded, Montréal became a magnet for investment. Factories sprouted near the harbour and railway lines, around which were clustered working-class dwellings, which led to the advent of Montréal’s trademark walk-up buildings. Later, electric tramways that allowed workers to live farther from work were in turn scrapped in favour of automobiles.

While Montréal’s English-speaking elite did well, the rising tide also lifted francophone ships:

… [H]undreds of thousands of new residents flocked to Montreal from all over the province …. Professionals, small business owners, insurance agents, and the like all benefited from a richer French-Canadian clientele that was swelling in numbers before their very eyes.

Millions voted with their feet by choosing to live there: Scottish fur barons, French Canadian factory workers, Eastern European Jews. “There was work for everyone, born in Montréal or otherwise ….” However, Anglos fled and immigrants eschewed the city in the latter part of the 20th century: “In the 1970s, Montréal entered a long period of weak growth and economic restructuring. Dark, gloomy clouds settled over the city.” The author compares Expo 67 to a fireworks display that masked the beginning of an inexorable decline. In fact, that same year, experts predicted Montréal’s population would reach five million by 1981, yet it has never surpassed three million.

So what went wrong? In the book’s second half, Linteau’s work falls short. He takes pains to minimize the role of Québec nationalism and other self-inflicted damage in Montréal’s decline. Indeed, it is true that Toronto overtook Montréal as Canada’s economic capital by 1960, long before the Parti Québécois’ victory. However, Linteau describes Montréal’s 1995 real estate nadir without mentioning the referendum of the same year. Linteau notes Montréal’s uncompetitive factories and lack of private investment but never asks whether Québec’s embrace of big government, dirigisme, and high taxes played a role. That is a significant omission in any account of the fall of Montréal as a capitalist city, akin to omitting the rise of competition in automotive manufacturing in any account of Detroit.

On a personal note, I grew up in Québec’s northern hinterlands, and I remember the frisson of walking down rue Sainte-Catherine Est with its concentration of tattoo parlours, peep shows and grimy fast-food joints. I lived in the city for a year but was drawn away from la belle province, first to Ottawa and now Calgary. Indeed, just like the Montréal of old, my Calgary apartment building is filled with newcomers – including many Indian IT workers (Calgary has almost three times as many corporate headquarters per capita as Montréal does). However, Linteau’s account reminds us how quickly things can change. Let The History of Montréal serve as a cautionary tale.

~

Olivier Ballou is Director of Communications at the Manning Centre for Building Democracy and the author of the Graphic Guide to Conservatism.

Love C2C Journal? Here's how you can help us grow.

More for you

Absent Minded: Ontario Tackles the School Attendance Crisis

Canadian schools have a problem – kids aren’t showing up. In Ontario, nearly 60 percent of high school students aren’t meeting the provincial standard for attendance. And Canada leads the world in absenteeism among children of university-educated parents. Yet when Ontario’s education minister announced he was getting tough on truancy, he was hammered from all sides, including “progressive” academics, conservative education reformers, sports parents and, of course, always-angry teachers’ unions. Christina Park looks into the causes of absenteeism and compares Ontario’s reforms to what various other countries are also trying to do about it. As Park explains, nothing can be fixed in Canada’s chaotic school systems until students start showing up for class.

Continental Grift: Why the Liberal Government’s Fixation with Europe Is a Sham

Market diversification is a sensible enough strategy for Canada, but Mark Carney’s fixation on closer ties with Europe is anything but. For one thing, argues business veteran Gwyn Morgan, we’ve already got comprehensive free trade deals with virtually all of Europe. Cozying up further to a dysfunctional, declining EU is pure folly. Far better for the Carney government to focus on Canada’s own self-inflicted economic problems – inflation, taxes, public debt, the disastrous drought in foreign investment. Oh, and the ongoing lack of free trade within our own borders. No need for overseas adventures, notes Morgan; there’s plenty of work to be done at home.

New Man, Same Old Plan: Mark Carney’s Net-Zero Ambitions Remain an Existential Threat to Canada’s Economy

To many Canadians, Mark Carney’s apparent transition from climate-change zealot to build-baby-build capitalist has been a surprising though welcome change. But is it real? Recent evidence suggests the prime minister has not abandoned his longstanding fixation with growth-killing net-zero commitments. Exhibit A is his government’s sustainable investment guidelines. Also known as the “green taxonomy”, this little-known effort seeks to label every development project in the country according to its perceived environmental impact, with the goal of directing where banks and investors are allowed to put their money – and punishing industries deemed unworthy. If not abandoned or watered-down soon, warns industry expert Gina Pappano, the green taxonomy will crush economic growth and cripple the current resurgence in Canada’s vital natural resources sector.

More from this author

Why conservatives should stop worrying and start loving art

Yes a lot of contemporary art is left-wing agitprop. Yes it’s outrageous that taxpayers have to pay for it. And yes some artists take particular pleasure in producing art that makes conservative heads explode. So what? Get over it, writes Olivier Ballou. Art and artists are more politically diverse than conservatives think, and they are the tribunes of a free, democratic and prosperous society. Even the abstract artists!