Aerospace is a special industry. It costs a fortune in R&D and it takes years to start profiting from a project. It's like pharma, but even worse. That's why there are so few big players and they're all backed by big governments. We won't know for another decade if the Cseries was a good move. But the future seems at least brighter than it did 18 months ago.
China would buy it on the cheap for the patents and technology and move everything to China.
No one is forcing anyone to buy Bombardier shares so I'm not sure what equality has to do with this. You know what you're buying before you do. The dual share structure is reflected in the price.
It's not like Bay Street has an amazing record either when it comes to global/international companies. There's very little success actually outside of banks and oil. Large canadian companies are mostly domestic behemoths with little competition.
And for such incompetent managers, the Beaudoin-Bombardier family still managed to create the third biggest commercial aircraft and train manufacturer in the world.
It is true that aerospace companies in other countries get a lot of subsidies. But R&D heavy industries can exist without government intervention. The US has ridiculous drug prices, but they do create a lot of drugs. At the end of the day this stuff is expensive but potentially very profitable, and somebody has to pay for it, somebody has to take big risks, and somebody gets the profits. Flawed as the US system might be, at least the Pharmaceutical companies are bearing the risk and for as many as there are that are wildly profitable there a lot who go bankrupt. What we absolutely don't want is for the general population to fund R&D and take on the risk that it fails while aerospace companies get the profits.
China has never seemed to care much about patents. And they don't even have the cheapest labour in the world anymore, not by a long shot. They're advantage now is their infrastructure, relative stability and the concentration of a large number of highly specialized factories near each other.
There are a lot of places in the world with cheaper labour, and there always was, even when times were really good and there were a lot of great manufacturing jobs in North America. But we had, and still largely do, have every other advantage (education, infrastructure, institutions, technology, capital etc). High-tech manufacturing is precisely one of the areas where we get to have the high paying jobs poorer countries so desperately want. But they can't because they don't have the wealth, so they offer the only thing they can, ultra cheap labour, in hopes of making enough money to invest in the other stuff.
And instead of trying to compete with them in the one area they have an advantage over us, low wages, we should push our advantage, which is like, every other variable. All this might sound like I'm arguing for supporting Bombardier, but my point is, if these jobs could be done more profitably by moving them elsewhere than domestic owners should do so, just as much as foreign owners. It sucks for the employees in the short term, but in the long term the world would be wealthier as developing countries do what work they can while freeing up developed countries to produce more of the stuff everyone wants but only they can produce. The governments resources would be far better spent helping the unemployed move quickly into producing the things we have a comparative advantage in, and in ensuring that the newly unemployed workers benefit as well from the increase in wealth that might be gained from this reorganization of the worlds resources (this would be a lot easier with a global fiscal policy).
Instead the government makes shitty business deals with Bombardier. It's true nobody is forcing me to personally buy Bombardier stock, and that the share structure is reflected in the price. But maybe it's fair if I think its lame that my government is making bad investments I would never make personally. The government could demand that Bombardier change its share structure if it wants a deal. Of course if Bombardier was willing to do so they could have found other people willing to lend them money. And maybe they would if they didn't know they could reliably wait for the government to give them an unfair deal in their favour, because politically a large loss of jobs would hurt the party in power a lot more than a bad deal.
"Bay street is really bad at business except for these two areas they've been really, really good at". Of course Bay Street isn't a government trying to push the Canadian economy to do work that others can do better. Instead they invest in the companies that will be most profitable. If Canada has a comparative advantage in a few areas than those areas are naturally going to be the ones most represented on the Canadian stock market. And of course the businesses that Bay Street invests in and the businesses listed on Canadian stock exchanges are two distinct things. Canadian resource companies operate all over the world (sometimes doing scummy things like spilling cyanide into rivers), and the Canadian banks are some of the largest US banks too. Blackberry for a while was killing it.
Canadian suit manufacturing dominated and destroyed the American suit manufacturing industry. And maybe Bombardier has at times done quite well, but we're doing no favours by babying them and shielding them from having to do better.
This sort of protectionism is how we got such garbage cheese. But Canada has way more farmland per capita than like, any other country in the world. Agrifood is an industry you'd think we'd be killing it in. But shielding that industry from competition has made it so uncompetitive that it might be devastated if it ever did have to compete. Granted it's an industry every other country protects and subsidizes as well. Now imagine if we opened up our borders to foreign subsidized agriculture while everyone else kept their subsidies in place. It would be real bad for some Canadian agricultural sectors, but it would be a transfer of wealth from the taxpayers of foreign countries to our citizens. There would still be a few specific sectors we'd be competitive in, which we might allocate more farmland to instead.