With no plan to deal with the potential end of NAFTA, no response to tax cuts in the US, and even more debt, the Trudeau government is making our economy less competitive and far more vulnerable.
There’s a widespread consensus that Trudeau’s 2018 budget is really a campaign document, designed to virtue-signal in an effort to win votes.
However, that focus on virtue-signalling by throwing in all the politically-correct buzzwords of the day (gender-based etc…) ignores what our economy really needs.
We live in a world that is increasingly dangerous and uncertain, with ruthless regimes like China’s Communist government seeking to dominate the global economy and buy up as much of the world (and Canada) as they can.
Meanwhile, we face serious competitive pressure, even from our close friends in the US who have enacted job-boosting tax cuts, and our energy industry is being strangled by the government.
Already, we are seeing the consequences, as manufacturing jobs at multiple companies have shifted out of Canada and into the US, and the collapse of investor confidence in the energy industry is costing us tens of billions in investment.
Finally, with interest rates going up, adding to the debt through budget deficits of choice is a reckless move.
So, with all the above in mind, it’s obvious that the goal of the 2018 budget should have been the following:
Cut the bloated government bureaucracy to decentralize power and save billions in bureaucratic salaries, which would reduce federal spending and get the budget moving quickly back towards balance (which requires only minimal spending restraint).
Eliminate the carbon tax to make our businesses more competitive.
Impose restrictions on foreign takeovers (especially by China’s communist party) to protect Canadian ownership and stop us from becoming an economic colony of foreign nations.
End the regulatory attack on our energy industry.
Those are four very simple things that the budget could have included, and they would have at least started reversing the deterioration in our competitive position.
The budget included none of it.
Instead, we got a virtue-signalling document, meant to evoke feel-good vibes.
Meanwhile, our debt gets bigger, our companies are strangled, foreign countries take more of our businesses away, and “Made In Canada” becomes increasingly rare.
Sooner or later, everyone needs to realize that political correctness can’t pay the bills.
Photo – YouTube