IN ONE OF THE FUNNIER EPISODES OF THIS MANIC BUDGET WEEK, host Ellen DeGeneres aired a segment showing Canada’s response to the threat of Americans moving up here to escape Donald Trump, titled, “We’re nice, but we’re not that nice.” You can view it here.
The reality is that we might be even nicer at the moment. During an American election season revealing far deeper divisions in the electorate than many realized, this week’s federal budget couldn’t set a more different tone. It was breathtaking in its own way, covering everything from deep investment in Indigenous Peoples to seasonal Employment Insurance programs, from tackling nagging infrastructure shortfalls to invigorating benefits for children and seniors, from beginning to make right the abiding gaps in veteran’s care to opening a new front on fighting climate change. Yes, it has its detractors, but even they were energized by its comprehensiveness.
It’s scope was made possible by the government’s willingness to go into deficit by almost $30 billion to pay for it (almost three times more than the Liberals campaigned on). Many voiced alarm at such a significant dip into the red, but, as this graph points out, we have been in worse situations before.
Following a decade of austerity, many Canadians are hoping for more investment in our social way of life. While both the Conservatives and NDP ran on balanced budget platforms in the last election, Trudeau’s Liberals put it out there that they believed the time had come for some deficit spending in significant proportions. Those who didn’t take to that outlook nevertheless had to come to terms with a Liberal win, empowered by over two million more voters who agreed with the approach.
Just as our neighbours to the south flirted with a less tolerant future, Canada was banking on more inclusiveness. It’s not the first time we showed a certain economic defiance. When in the 1950s we refused to link our currency with the U.S. dollar, as other nations were doing, alarms bells sounded across the nation as we permitted our currency to float independently. We not only survived; we thrived. And when the great rush to deregulate banks helped to drive forward the global austerity agenda, Canada refused and was able to escape the worst of the Great Recession as a consequence.
Whatever opinion one might have of this budget, there is no question that it represents a clear departure from the same old, same old economic policies of recent years – policies that implied we couldn’t afford to strive for our greatest ideals. It was a rationale used by both previous Liberal and Conservative governments to rationalize some of our greatest social and economic ills like lackadaisical environmental reforms, growing poverty, high unemployment, and deep infrastructure decline. Trudeau didn’t just reason that Canadians were tired of underperforming; he ran on that hunch in his election platform, receiving a clear mandate in the process. Rather ironically, it was the very kind of investment plan that even the once draconian International Monetary Fund (IMF) has been supporting.
In many ways were are staking a claim, investing in ourselves and some of our deeper instincts of fairness and equity. The government believed we were ready for it and presented a budget largely to match.
There is just one problem. The budget is one country’s attempt to somewhat swim against the current of a greatly dysfunctional global financial system. All that was wrong with global inequities still remains in place both before and after the Canada’s recent budget. Trudeau is banking on growth to eventually pay back our deficits, but it will take more – much more. Canada must assist the rest of the world, not by mere example, but by articulate and dynamic financial leadership to reverse decades of elitism and the kind of globalization the placed the free market system and not democratic citizenry at the helm of human advancement.
A number of years ago, then Senator Joe Biden made a revealing observation: “Don’t tell me what you value; show me your budget and I’ll tell you what you value.” This week the Trudeau government did exactly that. But it’s only the beginning. Changing the very nature of our global economies is now the next great step.