OPINION: Trudeau’s policies have hurt economic growth

Content of the article

In what looked and felt like a campaign stop in Sault Ste. Marie, Prime Minister Justin Trudeau recently reiterated his government’s emphasis on “growing the economy”. The problem for the Prime Minister is that the evidence is clear: His government’s approach to the economy has resulted in lower, not higher, economic growth.

Publicity

Content of the article

Stronger economic growth is a laudable goal, as it lays the foundation for a higher standard of living and the necessary resources for government for services such as health care.

The Trudeau government’s policies, which deviate from the consensus of previous Liberal and Conservative governments, include a combination of higher taxes, sharp increases in debt-financed government spending, and a more active approach to managing debt. economy through regulation.

We apologize, but this video failed to load.

In other words, Trudeau’s vision for a stronger economy relies on a bigger and bigger role for politicians and bureaucrats who pick winners and losers, and a smaller role for entrepreneurs, business owners. business and investors.

2020 COVID recession makes economic comparisons difficult, but a recent studycompared economic performance for the four-year periods preceding the last five recessions. More specifically, the study compared the economic performance of 2016-19 (under the Trudeau government), 2011-14 (Harper), 2005-08 (Martin-Harper), 1997-2000 (Chrétien) and 1986-89 (Mulroney ).

Publicity

Content of the article

theresultsclearly indicate a weaker economy during the Trudeau period of higher taxes, more government spending funded by deficits, and heavier regulation. More specifically, after adjusting for inflation, among these four-year periods, the growth of GDP per person (essentially, Canada’s GDP divided by our population) during the Trudeau period averaged 0.8 percent, which is a third lower than the second worst performing country (1.2 percent during the Martin period). -Harper) and more than four times less than the Christian period (3.7 percent).

Similar results hold for the broader measure of total GDP and for the narrower measures of household and personal income. Simply put, the economy grew slower before the COVID (2020) recession than the previous four comparable periods. It is not a sign of economic success.

Publicity

Content of the article

We apologize, but this video failed to load.

Equally mediocre results exist with the other measure championed by the Trudeau government – job creation. Private sector employment grew (on average) by 1.5% between 2016 and 2019, exactly the same rate as during the comparable Harper period. And Trudeau’s average 1.5 percent private sector job growth is well below that of Chrétien (2.9 percent) and Mulroney (3.3 percent).

Simply put, by empowering the federal government to make more decisions about where the economy is going at the expense of entrepreneurs, business owners, investors and workers, the Trudeau government has weakened the economy rather than improve it. And instead of acknowledging the failure of these policies, the Trudeau government has pledged to do more: more government spending funded by even more debt and higher taxes, now or in the future.

The Trudeau government is right to focus on improving economic growth. But he must realize that his approach has failed and go back to the policies of previous governments that worked to promote stronger economic growth.

Jason Clemens and Milagros Palacios are economists at the Fraser Institute. The editorial was co-authored by Niels Veldhuis, an economist at the Fraser Institute.

Publicity

comments

Postmedia is committed to maintaining a lively but civil discussion forum and encourages all readers to share their views on our articles. Comments may take up to an hour of moderation before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread that you follow, or if a user that you follow comments. Check out our community guidelines for more information and details on how to adjust your email settings.


Source link

Comments are closed.