"The impediment to action advances action. What stands in the way becomes the way." - Marcus Aurelius
TL;DR - Key Takeaways
- American taxpayers subsidize global prosperity across pharmaceuticals ($238B in R&D), maritime security ($150B annually), GPS, and internet infrastructure
- China systematically exploits these systems through IP theft (affecting 1 in 5 corporations) and forced technology transfer
- Canada benefits enormously from US-provided global public goods while contributing proportionally less
- Trump's objectives often have merit despite his completely unacceptable tone and treatment of allies
- Current tensions will ultimately strengthen both nations and their partnership
- The heroic approach: Face difficult truths with courage to build sustainable relationships
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Personal Context: My 33-Year Canadian Experience {#personal-context}
Before diving into this analysis, let me share why this matters to me personally.
I am American through and through, but I have been working in and out of Canada since the early 1980s. In the 1990s, my wife and I lived in North Bay, Ontario for four years, where I grew a global-scale business with Canadian headquarters. Some of our closest friends in the world are here in North Bay—relationships that have endured for 33 years as we spend most summers in Canada.
Why This Essay Matters: My wife and I just spent three weeks in North Bay, and it's clear that while our friendships remain strong, many friends are feeling genuinely hurt by how President Trump has treated Canada and Canadians. I completely agree with their sense of being disrespected.
These past weeks, I've been navigating these issues with deep empathy and curiosity—seeking first to understand what my friends are feeling. This essay stems from the total respect and love I feel for Canada and represents my attempt to work through these complex dynamics with the people I care about most.
The Heroic Framework: Building Toward Global Flourishing {#heroic-framework}
My perspective is shaped by deep involvement in the heroic movement. I am a large investor in Heroic Public Benefit Corporation and founded Heroic Arizona as the first of what will become many global/local communities working toward the ambitious goal that 51% of humanity will be flourishing by 2051.
The Stoic Foundation
This movement is grounded in ancient Stoic philosophy and modern positive psychology, teaching that obstacles, when properly approached, become the pathway to growth and strength.
The heroic philosophy teaches us that growth requires facing difficult truths with courage and wisdom. Sometimes the most loving thing we can do—whether as individuals, friends, or nations—is to have the difficult conversations that comfortable relationships often avoid.
The Scale of American Global Subsidization {#subsidization}
Here's the uncomfortable truth: American taxpayers effectively subsidize global prosperity across multiple critical sectors. The numbers are staggering.
Pharmaceutical Innovation: Funding the World's Medicine
The Reality:
- The United States was responsible for 43.7% of new molecular entities (new drugs)
- Global pharmaceutical R&D spending: $238 billion in 2022
- US companies alone: $83 billion in R&D expenditures (2019)
- Americans pay significantly higher drug prices than Canadians and Europeans
The Dynamic: American consumers effectively subsidize global drug development through higher prices, allowing other countries to access these life-saving innovations at substantially lower costs.
European R&D spending growth has been outpaced by both the US (5.5% annually) and China (20.7% annually), creating a growing innovation gap that further concentrates the burden on American investment.
Maritime Security: Protecting $14 Trillion in Global Trade
The Numbers:
- US Navy budget: $150 billion annually
- Global trade protected: $14 trillion travels by sea
- US commerce supported: $4.6 trillion in waterborne commerce
- American jobs dependent on maritime trade: 31 million
The Reality: The US Navy pays a steep price keeping aircraft carriers with escorts on station to protect critical chokepoints like the Strait of Hormuz, benefiting the entire global economy while American taxpayers bear the costs.
Maritime security operations include counterpiracy, drug interdiction, environmental protection, and law enforcement measures that benefit every trading nation worldwide.
Technology Infrastructure: The Foundation of Modern Life
What America Provides for Free:
- GPS System: American taxpayers pay for GPS service enjoyed worldwide—all funding comes from US tax revenues
- Internet Infrastructure: Government pioneered the Internet (DARPANET), GPS, touchscreen displays, and SIRI voice systems
- Foundational Technologies: The building blocks of smartphones, navigation, and global communications
The Pattern: These technologies were developed through massive US government investment, yet the world benefits while bearing none of the development costs.
✈️ Aerospace and Defense: Dual-Use Technology Development
2023 Numbers:
- US aerospace and defense industry: $955 billion in sales (7.1% increase)
- US aerospace exports: $138.7 billion (2023-2024)
- Defense Production Act subsidies: $900 million during Biden administration
The aerospace industry benefits from massive US defense spending that develops technologies later used commercially worldwide.
China's Systematic Exploitation {#china-exploitation}
The global subsidization problem becomes exponentially worse when you factor in how China systematically exploits American-funded innovations.
Intellectual Property Theft: Trillions Stolen
The Scale:
- Chinese state actor APT 41: Estimated trillions in IP theft from 30+ multinational companies
- FBI cases involving China IP theft: 1,000+ active cases (2020)
- Corporate impact: 1 in 5 North American corporations report Chinese IP theft in the last year
The Method: This isn't opportunistic theft—it's a systematic, state-directed transfer of wealth from innovating companies to their competitors.
Forced Technology Transfer: Market Access as Leverage
How It Works:
- Foreign companies must surrender technology to Chinese entities to access Chinese markets
- Joint venture requirements: Foreign ownership capped at 50%
- State coordination: Chinese companies utilize covert and coercive methods with government assistance
The Result: American companies invest billions in R&D, only to have innovations appropriated by Chinese companies that then compete globally without bearing original development costs.
This targets advanced technologies like AI, biotechnology, and virtual reality—technologies with dual military and civilian applications.
️ International Organization Manipulation
The Problem:
- Systematic manipulation: Authoritarian regimes use international forums like the UN General Assembly to deflect criticism of their own human rights violations
- Consistent opposition: Autocracies regularly vote against democratic positions on key issues
- Strategic deflection: Use symbolic voting to shield themselves from accountability while undermining democratic governance principles
The Warning: Without vigorous democratic response, Chinese, Russian, and other authoritarian influence in multilateral institutions will grow significantly.
Canada: A Case Study in Comfortable Dependency {#canada-case-study}
This brings me to the most delicate part of this analysis. Canada is among the world's strongest democracies and shares fundamental values with the United States. However, the relationship has developed asymmetries that mirror the broader global pattern.
️ Energy: The Perfect Example
The Current Reality:
- Canada has been effectively a single-customer energy supplier
- 70+ years: Canadian oil has passed through the US via Enbridge's network before returning to Ontario
- Heavy US market reliance has made Canada vulnerable to US policy changes
- East-west pipeline lacking: Limited ability to reach global customers
The Opportunity: Current pressure is finally catalyzing the diversification and infrastructure development that should have happened decades ago.
The Alberta Parallel: Canada's Internal Imbalance
Here's an uncomfortable parallel my Ontario friends might recognize:
Alberta's Frustration with Ontario/Quebec mirrors Canada's relationship with the US:
- Western alienation: Alberta, Saskatchewan, Manitoba feel marginalized by Central Canada (Ontario/Quebec)
- Economic contribution: Alberta accounts for 84% of crude oil production, 61% of natural gas production
- Historical tensions: National Energy Program caused Alberta unemployment to rise from 3.7% to 12.4% (1980-1984)
Recent Alberta sentiment (actual polling quote): "Stop transferring money to Ottawa for Quebec and Ontario. We are a have not province since all our federal politicians are doing nothing for oil and gas."
The Pattern: Power concentration—whether in Ontario/Quebec within Canada, or the US globally—creates resentment among those who bear disproportionate costs while having limited voice in decisions.
Trump's Approach: Right Issues, Wrong Execution {#trump-approach}
This is the most challenging part of this analysis. I must be absolutely clear:
❌ What I Completely Reject
Trump's language and tone with Canada are unacceptable:
- The harsh rhetoric and apparent bullying
- Public humiliation of Canadian leaders
- Inflammatory statements designed for domestic theater
- Complete lack of diplomatic respect
My Position: Canada has been America's steadfast partner through countless challenges. Canadians share our values, have fought alongside us, and consistently demonstrate commitment to democracy and human rights. They deserve respect, not public hectoring.
✅ The Uncomfortable Reality: Legitimate Underlying Issues
However—and this requires heroic honesty—many of Trump's underlying concerns about imbalances are legitimate:
- Burden-sharing inequities that have built for decades
- Trade imbalances that previous administrations avoided addressing
- Need for allies to take greater responsibility for security and prosperity
The Parenting Analogy: When Tough Love Becomes Necessary
I've witnessed this dynamic with two close friends whose children went completely astray. After every gentle approach failed—encouragement, reasoning, incentives, counseling—these parents ultimately had to use the toughest form of tough love: refusing to let destructive behavior continue in their homes.
The children's reaction: Felt their parents were cruel, unreasonable, even bullying.
The result: Forced development of independence, responsibility, and adult life skills that gentler methods had failed to achieve.
The European Example: When Gentle Approaches Fail
What Happened:
- Trump's first term: Diplomatic pressure on Europe for fairer trade deals and defense cost-sharing
- Europe's response: Essentially gave Trump the middle finger for years
- Assumption: Comfortable arrangements would continue indefinitely
Current Result: European nations are finally taking greater responsibility for their own security and trade relationships.
The Learning: Sometimes disrupting comfortable but unsustainable equilibriums forces the strategic thinking that should have developed decades ago.
The Canadian Response: Growth Through Challenge
From a heroic perspective—the Stoic principle that obstacles make us stronger—this pressure is producing positive results in Canada:
Infrastructure Development
- Canada is finally examining east-west pipeline projects for customer diversification
- Prime Minister Carney: New major projects office to reduce approval times from 5 to 2 years
- Long overdue infrastructure development represents exactly the strategic thinking that strengthens nations
The Fragility of Comfort
The uncomfortable truth: Canadians have become comfortable—perhaps too comfortable—with the existing US relationship.
Business Reality: Depending on a single customer is clearly suboptimal.
The Growth: Current pressure is catalyzing the diversification that should have happened years ago.
Heroic Insight: A truly strong and independent Canada should thrive with diversified markets, robust infrastructure, and the ability to contribute substantially to global systems from which it benefits.
Obstacles as Strength-Builders for Nations
This Stoic principle applies to nations and relationships between nations:
Current Pressure Will Make Countries Stronger:
- Canada: Developing energy infrastructure, diversified trade relationships, greater global responsibility
- Europe: Greater defense capabilities, diverse energy sources, stronger domestic industries
- Even China: May be forced toward legitimate innovation and fair trade practices
The Heroic Vision: The 51% of humanity flourishing by 2051 depends on nations embracing challenges as opportunities for growth.
The Path to Stronger Partnership {#path-forward}
The Goal: Heroic Partnership Based on Mutual Strength
Not ending the relationship but evolving it into something far stronger and more sustainable.
This means:
- Canada taking greater responsibility for continental security
- Contributing more substantially to global maritime security
- Developing independent energy infrastructure
- Working with genuine democracies to create institutions reflecting shared values
Enhanced Partnership Opportunities
Where Canada Can Lead:
- Democratic cooperation models that exclude authoritarian free-riders
- Energy security leadership: East-west pipelines and LNG exports reducing global dependence on authoritarian suppliers
- Arctic security: Canada's geographic position and expertise are invaluable as climate change opens new routes
️ Addressing the Language Problem
The Heroic Approach would involve:
- Clear, respectful communication about unsustainable arrangements
- Collaborative problem-solving for new frameworks serving everyone's interests
- Difficult conversations with dignity and courtesy that friendship demands
Future Leadership Lesson: Address necessary issues that previous administrations avoided, but do so with the respect that shared values and friendship require.
My Strong Belief: A Far Stronger Future Relationship
I have deep conviction that once this difficult recalibration period concludes, the USA-Canada relationship will be far stronger than ever before.
Why I'm Confident:
- Canada's Strategic Independence: Forced development of diversified capabilities will make Canada a more valuable and resilient partner
- Clarity of Values: Current challenges force both nations to articulate interests more clearly, creating partnerships based on explicit mutual benefit
- Shared Democratic Challenges: Competition with authoritarian regimes creates powerful incentives for democratic allies to work together more effectively
- Relationships Strengthened by Obstacles: The heroic principle that challenges create strength applies to partnerships—relationships that survive serious tests often emerge stronger
The Heroic Vision: Global Flourishing by 2051
The heroic movement's goal of 51% of humanity flourishing by 2051 depends on creating sustainable partnerships between democratic nations that can collectively address global challenges while resisting authoritarian exploitation.
This requires:
- Moving beyond comfortable but unsustainable arrangements
- Partnerships based on mutual strength and shared responsibility
- Difficult conversations now to prevent serious problems later
- International institutions reflecting democratic values, not providing platforms for authoritarian manipulation
Conclusion: The Heroic Path Through Obstacles
The relationship between the United States and Canada stands at a crucial juncture. While I completely reject the harsh language and disrespectful tone that has characterized recent pressure for change, I must acknowledge that many underlying issues are legitimate and long-overdue for address.
The heroic approach: Face difficult truths with courage and wisdom, seeking solutions that strengthen all parties.
The obstacles currently facing Canada—pressure to diversify energy markets, develop independent infrastructure, and take greater global responsibility—will ultimately make the country stronger and more resilient.
For My Canadian Friends: I hope you understand this analysis comes from a place of deep love and respect, informed by decades of shared experience and unwavering belief in the strength of our friendship. The goal is not to diminish Canada or defend indefensible behavior, but to work together toward a future where both our nations can thrive as equal partners.
When this period of difficult but necessary adjustment concludes, I believe we will see a partnership between two strong, independent, democratic nations that is far more capable of promoting global flourishing than the comfortable but unbalanced arrangement of recent decades.
The heroic path is never the easy path, but it leads to genuine strength, sustainable relationships, and partnerships that can achieve the essential goal of global human flourishing. The obstacles we face today are not impediments—they are the very challenges that, properly navigated, will make that achievement possible.
What do you think?
Have you experienced similar dynamics in your relationships—personal or professional—where comfortable arrangements needed difficult recalibration? How do we balance loyalty to friends with honest assessment of challenging situations?
Share your thoughts below, and if this resonates, please share with others navigating similar complex relationships in our changing world.
Learn more about the heroic movement at heroic.us and connect with our Arizona community at HeroicAZ.us
"Want the full story?
This blog only scratches the surface of a much larger pattern of global subsidization that most people never see—dive into the comprehensive essay with detailed research, extensive statistics, and the complete case for why these uncomfortable truths about US-Canada relations actually point toward a far stronger partnership ahead.
