Canadian CEOs Want More Guns, Less Bread

Canada’s Business Council is pushing to triple the country’s military spending while cutting other government programs. This strategy, tied to NATO commitments and US trade relations, would shift billions away from social programs toward defense contractors.

Canadian Armed Forces member put on a parachute show as part of the official commemoration of D-Day on June 6, 2024, in Courseulles sur Mer, France. (Artur Widak / NurPhoto via Getty Images)

At the end of last year, the Business Council of Canada (BCC), formerly the Canadian Council of Chief Executives, released a report calling on the government to increase military spending to 3 percent of GDP. Currently Canada devotes 1.37 percent of GDP to defense spending, but the BBC, which represents 170 of the country’s top CEOs, proposes raising this to 2.5 percent over the next decade, with further increases beyond that. The BCC’s plan would add over $40 billion a year (in today’s dollars) to military spending. To fund this massive increase — over twenty times the size of Environment Canada’s budget — the lobby group is calling for cuts to other government departments.

The BCC, whose members include grocery store head Galen Weston Jr, Power Corporation’s Paul Desmarais Jr, and top bank executives, has a long history of promoting militarism. It has organized tributes to the Canadian Armed Forces, supported the 2003 invasion of Iraq, and endorsed Ronald Reagan’s “Star Wars” missile defense initiative. In a 1981 report titled “Canada’s Defence Policy: Capability Versus Commitments,” the group bemoaned the “benign neglect and inadequacy of resources for nearly 20 years” that made the Canadian Forces “incapable of meeting the international military commitments which Canada has assumed.”

But far from the lofty rhetoric of its reports, the BCC’s support for increased military spending is closely tied to its representation of arms producers and related industries that benefit from greater war spending. Members include leaders of military suppliers CAE, MDA Space, and Bombardier.

The Business of War

In its report “Security & Prosperity: The Economic Case for a Defence Industrial Base Strategy,” the BCC argues that military spending should be leveraged to subsidize other sectors. Military procurement, they note, is exempt from trade agreements that typically prohibit nationalistic or “buy local” initiatives. The report states that “dedicated defense innovation programs are vital as they are generally sheltered from the obligations of trade agreements. This provides the Government of Canada with ample leeway to support strategic sectors.”

Another important factor driving BCC’s support for increased military spending is the notion — debatable at best — that Canada must bolster military spending to maintain trade relations with the United States. The report warns:

Senior American officials have warned that a smooth review of the Canada-United States-Mexico Agreement (CUSMA) — a trade deal ensuring the orderly flow of approximately $3.6 billion of goods and services across our shared border each day — will be tied to the Government of Canada strengthening its defense posture, including stepping up its industrial contributions to NATO.

The Canadian Forces frequently assist the US military through naval missions, special forces deployments, and arms testing. They have also participated in US-led wars in Korea, Iraq, Serbia, Afghanistan, and Libya. Additionally, Canada’s arms industry is dominated by US branch plants, including General Dynamics Canada, Lockheed Martin Canada, and Boeing Canada, which stand to benefit from increased military spending.

In a striking sign of US influence, Canadian defense minister Bill Blair recently told Le Devoir that he wanted to ramp up military spending to please Washington. He griped that progress was constrained by the slow approval process in the US Congress, which must green-light 70 percent of the arms and equipment Canada intends to purchase.

Military Class Dynamics

The Canadian Forces, deeply aligned with US priorities, trace their roots to a British imperial force that played a central role in the brutal dispossession of First Nations peoples and the expansion of imperial rule. After Confederation, the Canadian military was instrumental in suppressing First Nations and Metis resistance on the Prairies and participated in British military campaigns in Sudan and South Africa, as well as World War I and other conflicts.

A lesser-known aspect of Canadian military history is its forces’ role in quelling labor unrest. Between 1867 and 1933, Canada’s militia was deployed to assist civil authorities at least 133 times, with strikes accounting for half of these deployments. While technically designed to maintain law and order, writes Mike O’Brien, militia “intervention in industrial disputes . . . [was] in virtually all cases to the advantage of employers.”

Early Canadian militia leaders were drawn from the upper classes. Officers were mostly British and from affluent backgrounds, echoing the British custom of wealthy individuals purchasing military commissions. While Canada’s military was less class stratified than Britain’s, officers were nonetheless rarely drawn from working class or indigenous backgrounds.

In the 1890s, the military began appointing wealthy individuals as honorary colonels, bolstering ties between the armed forces and Canada’s economic elite. Notable examples include George Stephen, who was the principal shareholder of the Hudson’s Bay Company, and Lord Strathcona, a cofounder of Canadian Pacific Railway. As Carman Miller notes, honorary colonels were “carefully chosen for their long purses.”

Colonels of Capital

The military continues to offer honorary ranks to wealthy nonsoldiers who are tasked with advocating for their regiment, advising on relevant policy matters, and promoting broader military interests. Dozens of well-to-do and ultrawealthy individuals have received honorary ranks in recent years. For example, in 2011, BCC member and hedge fund manager Blake Goldring was appointed first-ever honorary colonel of the Canadian Army, after serving as honorary colonel of the Royal Regiment of Canada. Billionaire Frederick Mannix, whose son is a BCC member, held honorary titles with the Calgary Highlanders between 1980 and 1994. Similarly, André Desmarais, whose brother is a BCC member, is president of the honorary members of Les Voltigeurs de Québec, the army’s oldest French-speaking regiment. The regiment’s grands amis internationaux have included ultrawealthy figures such as David Rockefeller, Gustavo Cisneros, and Riprand Arco-Zinneberg.

The Canadian Forces actively cultivate relationships with captains of industry, offering programs like the “action-packed” Canadian Leaders at Sea Program, a multiday navy operations experience. Additionally, the military and its affiliated institutions give out a slew of awards, such as the Meritorious Service Medal and Chief of Defence Staff Commendation, often bestowed on corporate leaders.

The Department of National Defence–supported Conference of Defence Associations has given its prestigious annual Vimy Award to Blake Goldring and Frederick Mannix. The True Patriot Love Foundation gave its first Patriot Award for Outstanding Philanthropic Support of Canada’s Military Families to BCC member Paul Desmarais Jr in 2014. In 2023, Galen Weston Jr, who three years earlier took a four-month leave of absence from Loblaws to serve in the Reserves, received a certificate of appreciation from the Canadian Forces Liaison Council.

By contrast, representatives from Canada’s four million unionized workers appear absent from the boards of these institutions and the recipients of these accolades. While some individuals from academia, media, and public institutions have received such plaudits, my research for the 2021 book Stand on Guard for Whom?: A People’s History of the Canadian Military found no examples of labor leaders receiving similar honors. This exclusion is particularly striking given that the rank and file of the Canadian Armed Forces is overwhelmingly composed of working-class individuals, mostly drawn from rural areas. The military leadership’s deliberate cultivation of ties with wealthy elites underscores a glaring disconnect between its priorities and the socioeconomic background of its personnel.

At a broader cultural level, military structures and norms reinforce hierarchy and class rule. The Canadian Armed Forces prize loyalty, conformity, and obeying orders — values that often contradict pluralistic, democratic principles. These traits appeal to supporters of minority rule — wealthy elites and their allies — who are more than happy to promote the military for the simple reason that they view it as a tool for maintaining their power and influence.