Canada’s Economy Needs Decentralization

I’ve been writing regularly about the problems facing Canada’s economy. The housing market, rising personal debt, the carbon tax, and over-regulation are all areas of concern.

Another key factor is how quickly an economy, and the people who comprise it, can react to a changing world.

This is where Canada faces a significant challenge.

Because, while our people are hard-working and capable, our governments at all levels are stuck in the old attitude of trying to centralize everything.

Look at the fight between the provinces and Ottawa. The provinces want more decentralization, but only because provincial politicians want more money under their control. Municipalities want more decentralization from the provinces, but only because municipal politicians want more money under their control.

Power and money should go to where it belongs – in the hands of individual Canadian taxpayers

One group keeps getting left out – the taxpaying citizens who keep all levels of government functioning. There is no government without taxpayers. After all, politicians are supposed to be our servants, not the other way around.

That means decentralization has to flow to the most basic level – individuals. We live in an era where technology and advanced networks have reduced the need for physical, centralized government offices. It has never been easier to reduce the size and role of government, and yet politicians and bureaucrats keep hanging on – trying to take more and more in taxes every year.

This is the core of the problem facing Canada’s economy. So long as we remain trapped in the mindset of centralizing power, we will remain vulnerable to an increasingly competitive world.

It’s time to embrace the future. Our politicians need to step back, and our institutions need to change – and in many cases shrink – so we can unleash the full potential, freedom, and power of the Canadian people.

Spencer Fernando