Why the Liberal-NDP pact represents a last-ditch attempt to avoid reckoning with a rapidly changing world.
When a certain way of thinking no longer works, there are two possible responses:
Doubling-down.
Changing course.
This is the choice facing Canada at the present moment, at a time when the worldview of the statist political class has been largely discredited.
Consider that the Liberals & NDP have made the following assumptions about the world:
Debt costs will remain low.
Military spending is unnecessary.
Oil & gas is finished.
The transition to renewables will be easy.
Shared national values don’t matter.
Population growth and money printing can replace productivity.
Each of those assumptions are being proven wrong as we speak.
Debt costs are rising as interest rates go up, the inevitable result of an unsustainable debt/money-printing binge.
Russia’s invasion of Ukraine has shown the necessity for democracies to have strong militaries, while also showing why it is so dangerous to rely on unfriendly nations for energy supplies.
The transition to renewable energy isn’t happening nearly as fast as governments thought, with basic geopolitical reality and economic facts dictating the continued use of fossil fuels.
Canada is increasingly divided as identity politics pits people against each other and inflation generates even more anger.
And substituting population growth and money printing for productivity has resulted in a completely distorted housing market, surging cost-of-living, and economic stagnation.
The irony here is that the fix to all of these problems is quite simple:
Return to sound money.
Restrain government spending everywhere except for the armed forces.
Embrace the energy sector and remove the carbon tax, to drive further investment and economic growth.
Focus on the promotion of shared values like individual freedom, rather than dividing people into identity groups.
And recognize that the government must get out of the way and unleash technological innovation and entrepreneurship to build a truly productive economy.
Doubling-down
You’ll of course notice that the ideas mentioned above represent a reversal from the current Liberal-NDP worldview.
And, that is a key reason behind the Liberal-NDP pact.
Rather than change course as the world demonstrates the emptiness of their ideas, the Liberals & NDP have decided to double-down.
They are spending more and intervening in the economy even more.
The carbon tax keeps going up.
The hostile attitude to the energy sector largely remains.
The focus on identity politics has gotten even worse, with environment minister Steven Guilbeault now musing about ‘environmental racism.’
And the refusal to embrace sound money continues to drive higher and higher inflation, further damaging our economy and weakening our society.
In essence, the Liberals-NDP pact represents Justin Trudeau & Jagmeet Singh – along with their followers – giving in to a deep denial about the true state of Canada and the world.
They have chosen to continue embracing the politics of ‘virtue-signalling’, latching on to every short-term social media trend, rather than any sort of in-depth thinking about how Canada can respond to economic and geopolitical reality.
Unfortunately, our country is learning the hard way how unaffordable that denial of reality is.
Spencer Fernando
Photo – YouTube
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