Friday, September 17, 2021

Centralization of the Liberal Party puts the free market in trouble

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Editor’s note: This is the third article in a series of articles examining various economic platforms before the 2021 federal election. Read the first one here and the second one here.

Canada has the pomp and environment of municipal and provincial governments. However, when reading the economic program elaborated by the current Liberal Party, it is difficult for people to understand where the federal government ends and where the lower levels of government start.

In addition to Quebec’s unique case, meaningful autonomy is imminent, and the Liberal Party’s plan will bring a blow. This means that the party’s economic policies—from authorization to emergency funding—accelerated the tendency that lower-level governments are merely administrative puppets of the ruling class in Ottawa. The level of detail on the platform that outlines local policies is incredible.

Behind the continued takeover of provincial and local jurisdictions is a huge centralization mentality: a lack of confidence in bottom-up growth, individual initiative, and trial and error trials of markets and policies. The natural conclusion out of condescension on decentralization and emergency order is to focus on the highest level available, whether it is national or global.

No restrictions on federal intervention

Let us stop and ask ourselves, what areas of Canadian life are left out of the federal government? Especially the COVID-19 era has made this issue prescient, especially the governors succumbed to Ottawa’s demands.

However, if we go beyond civil liberties, the most basic principle of a free market economy is: property. After the COVID-19 measures, the Liberal Party’s housing plan “Everyone’s Home” is their top priority, and we see that the central theme of the platform is taking shape.

Perhaps it is to surpass Erin O’Toole, leader of the Conservative Party. The platform of the Liberal Party promised not 1 million new houses, but 1.4 million new houses-this is not any leader who can fulfill his promise. The Liberal Party launched the “National Housing Strategy” in 2017, which is an “ambitious ten-year plan to invest more than $72 billion to build supply.” However, parliamentary budget officials reported four years later that it had almost no Get any results, but wasted money and fell into the grand idea of ​​”implementation delay”.

There shouldn’t be a national housing strategy at all, it itself quotes Soviet-style language. The Liberal Party’s mantra seems to be, if you don’t succeed at first, try again. This time, the party’s plan still has not resolved many of the deadlocks that hinder supply, such as green space, zoning, and occupational permits.

However, the plan has a series of feel-good plans that are enough to surprise a person, including tax-free savings, renovation tax credits, rent-and-buy plans, pricing, and even “housing” acceleration funds. “These all allow central planners to manipulate who can and cannot buy houses and how to buy them-with the goal of supporting sensitive voting groups-without taking any measures to resolve the crisis.

The situation gets worse because the devil is in the details. If you buy a house or open up land and do not occupy it, please pay attention. From January 1, 2022, a national tax will be levied on vacant property owned by non-residents and non-Canadians. Managing this will open a can of worms, but it’s just the thin end of the wedge that opens the door to wholesale appropriations.

The platform promises: “Cooperate with municipalities to determine vacant or underutilized property that should be converted to housing based on the principle of use or loss.” If federal officials can come and inspect your home carefully to see if it is not in their eyes. Being fully exploited-as an excuse for confiscation-what can they not do?

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The shock of division and poverty

If Canadians support a policy that is good for the economy, it is open trade between provinces. Allowing people to freely trade their labor and goods across the country is a breeze. It will quickly and permanently promote economic growth and make Canada more competitive.

However, because inter-provincial trade does not meet the centralization agenda, it has stagnated for decades and has not appeared on the Liberal Party’s platform. This policy will unify Canadians and become a legal field for federal facilitation.

On the other hand, the equalization system redistributes taxes among provinces and divides the country. This is one of the main dissatisfaction behind the increasing calls for independence from Canada in the West, which is reflected in the Federal Mavericks Party and Alberta’s Wild Rose Independent Party.

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Since equalization is in place and in line with the centralization agenda, it is not mentioned on the Liberal Party platform. Although progress is slow, equalization is eroding provincial autonomy and financial resources. In particular, the Atlantic region has been unable to reform for a long time, even in the obvious wave of immigration, because equal payments have kept the region in a mediocre state for a long time.

These two policies need to be resolved urgently, but on the contrary, when reading the platform, people have to provide a lot of wrong and distorted reasons for the integration of power in Ottawa. This integration not only hinders growth, but it divides supporters from each other as they compete for a larger share of the shrinking pie.

Endless deficits exacerbated this problem. The Liberal platform did not even pretend to solve the problem of balanced budgets, but proved the profligacy through the voodoo multiplier effect. Using limited capital for government spending will crowd out private investment, which is critical to solving Canada’s stagnant economic recovery. Taxpayer-sponsored childcare is a ballot scheme disguised as an economic stimulus.

This unwillingness to face financial reality will continue to apply to student loans. The Liberal Party plans to suspend interest for another two years and permanently cancel the part managed by the federal government. Due to the inflation rate exceeding 3%, the funds received by the lender were less than the funds issued. There is no incentive to repay loans, why provide financing loans?

In the race to the bottom under the frenzy of election campaigns and endless promises, the biggest loser seems to be Canada’s federal system. The Liberal Party is not alone in promoting the centralization of Ottawa, but its sophisticated and extreme tactics have hit the root of what has made Canada an advanced developed country.

The views expressed in this article are those of the author and do not necessarily reflect the views of The Epoch Times.

Fergus Hodgson (Fergus Hodgson) is the founder and executive editor of the Latin American intelligence publication Economic America. He is also the traveling editor of Gold Newsletter and a research assistant at the Center for Frontiers in Public Policy.

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This News Originally From – The Epoch Times

Centralization of the Liberal Party puts the free market in trouble
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