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The 51st State: How Annexing Canada Could Create an Economic Superpower

What most Americans might not know is just how bad it has gotten in Canada under their current leadership.

Justin Trudeau’s Liberal Party, once the standard-bearer of Canadian progressivism, found itself in unprecedented turmoil in early 2025. Following Trudeau’s January resignation announcement, the party faced its lowest polling numbers in recent memory, with Conservative opponents leading by a staggering 21 points. This dramatic decline stems from a perfect storm of policy controversies that have eroded public trust.

At the heart of the Liberal Party’s struggles lies a housing crisis that many Canadians blame on aggressive immigration policies. With 2.4 million families living in inadequate or unaffordable housing, the party’s signature carbon tax has become politically toxic, forcing leadership candidates to distance themselves from once-core environmental policies. Even frontrunner Mark Carney has promised to scrap the consumer carbon tax entirely, while immigration levels are being reconsidered in light of the housing shortage. As the party scrambles to choose a new leader, these dramatic policy reversals signal the end of an era in Canadian politics and raise questions about the future of progressive governance in North America.

Underlying these policy failures is a deeper crisis of national identity that has plagued Canada for generations. Unlike its southern neighbor, Canada has struggled to define a cohesive national character beyond vague notions of multiculturalism and not being American. The Liberal Party’s attempts to forge this identity through progressive policies and increased immigration have instead highlighted the country’s divisions. Quebec continues to assert its distinct cultural heritage, Western provinces feel alienated from Ottawa’s decision-making, and urban-rural divides grow deeper. In trying to be everything to everyone, Canada risks becoming nothing to anyone – a challenge that will face whoever next leads the Liberal Party and the nation.

The idea of the U.S. annexing Canada to be the 51st state is not as crazy as it might seem. There is a lot to review, but what prompted this idea in the first place, lax immigration policies and a wide-open border that presents significant national security risks to the U.S. and what would the implication be if it was to happen? Even the Canadian people have recognized their government’s failure and have considered this annexation. A poll by Ipsos shows that 43% of Canadians aged 18-34 support Canada becoming part of the U.S., the province of Alberta leading the polls.  

So why is Alberta leading and how would that impact this scenario?

The prospect of Alberta joining the United States would reshape North America’s economic and political landscape in unprecedented ways. With a GDP of $351.4 billion in 2024 and record oil production of 3.4 million barrels per day, Alberta’s potential annexation would hand America control of 166.3 billion barrels of proven oil reserves, instantly transforming U.S. energy independence. The move would also deliver a massive economic blow to Canada, as Alberta’s contributions to the federal government currently exceed those of British Columbia and Ontario combined by five times.

The economic implications would be staggering: the Alberta-U.S. trade relationship alone already totals $188 billion annually, and direct integration into the American economy could accelerate that further. However, such a move would require massive structural changes, from healthcare and education system overhauls to currency conversion and regulatory alignment. For Canada, losing a province that has contributed more than $600 billion to the federation since 1967 would force a fundamental reimagining of its federal system and national identity.

It’s a wild thought: Canada, that vast northern neighbor with its maple syrup, hockey obsession, and universal healthcare, becoming America’s 51st state. While it might sound like political science fiction, the economic implications of such a union would be staggering.

Consider this: Canada currently sends 75.9% of its exports to the United States and receives 62.2% of its imports from its southern neighbor. The two economies are already deeply intertwined, with $800 billion worth of goods crossing the border in just the first three quarters of 2024. Merging these powerhouses would create an economic juggernaut unlike anything the world has seen.

The marriage would bring an enormous dowry. Canada’s natural resource wealth topped $1.7 trillion in 2023, including vast reserves of oil, natural gas, precious metals, and fresh water. This wealth would instantly become domestic rather than foreign resources, dramatically reducing America’s dependence on overseas suppliers and strengthening its global economic position.

But the benefits would go far beyond raw materials. The union would create a single, seamless market of nearly 400 million consumers, stretching from the Mexican border to the Arctic Circle. Gone would be the paperwork, customs delays, and regulatory differences that currently add friction to cross-border commerce. A Toronto-based startup could expand to Chicago as easily as to Montreal. A Seattle manufacturer could ship to Vancouver without a second thought.

The timing might be surprisingly good. Canada’s economy showed resilience in late 2024, growing 2.6% in the fourth quarter, (despite having a historic decline in living standards, in 2019 per-person GDP fell from $59,905 to $58,134 in 2023, a 3% drop over 4 ½ years) suggesting it would enter this hypothetical union from a position of strength, not desperation. The combined entity would control most North American resources, technology hubs, and financial centers, creating an economic fortress that would be nearly impossible to challenge.

The financial services sector would see immediate benefits. Toronto’s Bay Street would effectively become an extension of Wall Street, creating a financial axis running through the heart of North America. The combined stock exchanges would rival any global competitor, while the merged banking systems would create unprecedented stability and lending capacity.

Healthcare presents an interesting wrinkle. Canada’s single-payer system, while not perfect (long wait times, hard to find primary care, staffing shortages, an overall inefficient system), has achieved universal coverage at a lower per-capita cost than the U.S. system. The lower cost and bureaucracy have made the Canadian single-payer healthcare system a cautionary example of why universal healthcare is not always a good idea.

Energy independence would become energy dominance. Canadian oil sands, combined with U.S. shale production, would create an energy powerhouse capable of not just meeting domestic demand but becoming a major global supplier. The combined renewable energy potential – from Canadian hydroelectric power to American solar and wind resources – would accelerate the transition to clean energy while maintaining energy security.

The tech sector would get a particular boost. Silicon Valley would gain direct access to Toronto’s artificial intelligence hub and Vancouver’s gaming industry. The free flow of talent across what was once a border would create new innovation clusters and accelerate technological development. Montreal’s aerospace industry would complement American manufacturers, strengthening the combined nation’s position in the global aviation market.

Of course, the devil would be in the details. Currency unification, regulatory harmonization, and political representation would present significant challenges. Quebec’s unique cultural and linguistic heritage would need careful protection. But the economic benefits might be worth the complexity.

The benefits of a United States annexation of Canada has many positive benefits not just economically but also from a security standpoint. A unified defense system would strengthen North American security. We would have access to shared resources, allowing the unified country to excel in energy independence.

For business, the implications would be huge. The joining of the two economies would expand market access, streamline supply chains, increase resource availability, and attract more investment, thereby strengthening the overall economy. This would encourage investment from within, and from outside of the new nation.

Written by Daniel Lopez

HR Executive, Author, Consultant, Change Management, HR Business Partner, Learning & Development, Orgnizational Development, Coaching

March 4, 2025

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