Pierre Poilievre is raising expectations at a time when the current zeitgeist in economic policy making is to lower them. Read more.
higher interest rates, more inflationPromises to ease the cost-of-living crisis, make housing more affordable, drive incomes higher, spend more on defence, and stoke energy development without undermining climate transition efforts are easier said than done.
One short-term solution — outside of a major recession — would be a sudden curtailment of international migration flows, a big can of worms. Meanwhile, calls for smaller government, balanced budgets and lower taxes are crowd favourites but the longer-term structural forces in the economy — from aging to industrial policy and energy transition — suggest bigger government may be here to stay. Poilievre has made it clear, for example, that his climate plan will rely on technology and not taxes to drive down carbon emission. But that’s going to be very expensive, as the Liberals are already finding out.
Where are the Conservatives on industrial policy and supply-chain resiliency — new trends in policy making that put the state at the centre of economic development?What if inflation fails to come down fully to two per cent — let’s say it gets stuck at three per cent or higher due to all these emerging supply hurdles.
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