Is the ‘New Ottawa Consensus’ killing our economy?
There has been a consequential lack of fiscal discipline since the Liberals took power in 2015. GDP per capita has been flat for much of the past decade, which is one indication that this strategy has not worked particularly well.
No need to make it over complicated. Trudeau has overtaxed the nation overhired the civil service and bogged down the economy with stalling, bureaucracy and overregulation. He has no interest in or concept of financial responsibility
25th September 2023 at 10:17 am
A. Chezzi
I think the “new” Poilievre policy is a return to old ways where deregulation will have an adverse effect on the average citizen. We have seen that happen with the Ford government. Poilievre talks a lot about getting rid of gate keepers which makes good theater but in reality, he will not push against the true gate keepers who contribute to the Con fund or who have his ear. His talk about pushing against big pharm makes for good politics on the hustings but in reality, we have seen how long it will take and how expensive it will be to get results. The U S poured hours and money into prolonged court battles which I don’t thin Poilievre would be will to do. Under Poilievre, there would be no reform of the tax base. The well to do would continue in their privileged positions. There might be tinkering with the tax system but nothing substantial. Poilievre talks tough about human rights but fails to step up and protect children who are most at risk in our schools and in society at large. He know how to put on a good show and it leads to pitch fork politics, his supporters use threats to try and bully those not in agreement with Con ideology.
While this comment may not be solely about the economy, Poilievre’s ideas about the economy and a socially conservative government are all tied together. Ideologues do not make good government.
25th September 2023 at 9:02 am
Stuart Thomson
Today, Jon Hartley writes about the ‘New Ottawa Consensus,’ defined by a lack of fiscal discipline, a growth in regulations and a declining interest in free trade deals.
Jon zeroes in on perhaps the most important economic indicator and it is grim:
“How has this New Ottawa Consensus been working for Canada? GDP per capita has been flat for much of the past decade, which is one indication that it has not been going particularly well.”
25th September 2023 at 6:39 am
Rob Tyrrell
Good morning!
Alternative Article Title: Fancy Justifications For My Given Support of Pierre Poilievre and the CPC
The almost gleeful willingness of the Federal LPC government to run deficits in “good times” is concerning and worthy of nuanced criticism. I expect that minority government increases the likelihood of deficit spending.
Our GDP over the past 10 years is a concern but I would need to see a neutral and detailed analysis (including comparisons to similar countries) as to the various causes. Perhaps the Federal Liberals bear much of the blame.
The degree to which the free market, our modern engine for prosperity, is harnessed by governments swings like a pendulum. Hopefully, it acts as a means to broad and fair prosperity, but the balance (degree of harnessing) is so so easy to get wrong. In fact, it is even debatable what the proper balance should be from sector to sector. I guess that’s what lobbyists are for.
25th September 2023 at 7:50 am
Rudyard Griffiths
What is interesting to think about the “new” Ottawa consensus is its internal contradictions. On one hand its assumptions are the product of the up to 18 months ago ultra low interest rate regime. Many of its core tenants are only actionable in a low cost of capital environment that allows for the various frictions and inefficiencies its introduces into the economy. Today we face sticky inflation (see the huge wage settlement the autoworkers extracted from Ford) and higher for longer interest rates to reflect the very inflationary economic reality brought about by the “new” Ottawa consensus. To this extent I don’t think it will endure for any length of time if inflation doesn’t fall back to the post GFC level and rates don’t follow back down to the zero bound. And its very policy preferences will largely insure this doesn’t come to pass. Its catch 22.
25th September 2023 at 8:59 am
Gary Oxenforth
If the CONS win the next election and change the rules for a brighter economy it will only last until the LIBS are bac in power with a lack of fiscal discipline.
25th September 2023 at 10:05 am
Earl Chinchilla
The BoC wanted to cool the Econmy. They succeeded? What’s going on over there.? This is simple stuff.
Comments (7)
No need to make it over complicated. Trudeau has overtaxed the nation overhired the civil service and bogged down the economy with stalling, bureaucracy and overregulation. He has no interest in or concept of financial responsibility
I think the “new” Poilievre policy is a return to old ways where deregulation will have an adverse effect on the average citizen. We have seen that happen with the Ford government. Poilievre talks a lot about getting rid of gate keepers which makes good theater but in reality, he will not push against the true gate keepers who contribute to the Con fund or who have his ear. His talk about pushing against big pharm makes for good politics on the hustings but in reality, we have seen how long it will take and how expensive it will be to get results. The U S poured hours and money into prolonged court battles which I don’t thin Poilievre would be will to do. Under Poilievre, there would be no reform of the tax base. The well to do would continue in their privileged positions. There might be tinkering with the tax system but nothing substantial. Poilievre talks tough about human rights but fails to step up and protect children who are most at risk in our schools and in society at large. He know how to put on a good show and it leads to pitch fork politics, his supporters use threats to try and bully those not in agreement with Con ideology.
While this comment may not be solely about the economy, Poilievre’s ideas about the economy and a socially conservative government are all tied together. Ideologues do not make good government.
Today, Jon Hartley writes about the ‘New Ottawa Consensus,’ defined by a lack of fiscal discipline, a growth in regulations and a declining interest in free trade deals.
Jon zeroes in on perhaps the most important economic indicator and it is grim:
“How has this New Ottawa Consensus been working for Canada? GDP per capita has been flat for much of the past decade, which is one indication that it has not been going particularly well.”
Good morning!
Alternative Article Title: Fancy Justifications For My Given Support of Pierre Poilievre and the CPC
The almost gleeful willingness of the Federal LPC government to run deficits in “good times” is concerning and worthy of nuanced criticism. I expect that minority government increases the likelihood of deficit spending.
Our GDP over the past 10 years is a concern but I would need to see a neutral and detailed analysis (including comparisons to similar countries) as to the various causes. Perhaps the Federal Liberals bear much of the blame.
The degree to which the free market, our modern engine for prosperity, is harnessed by governments swings like a pendulum. Hopefully, it acts as a means to broad and fair prosperity, but the balance (degree of harnessing) is so so easy to get wrong. In fact, it is even debatable what the proper balance should be from sector to sector. I guess that’s what lobbyists are for.
What is interesting to think about the “new” Ottawa consensus is its internal contradictions. On one hand its assumptions are the product of the up to 18 months ago ultra low interest rate regime. Many of its core tenants are only actionable in a low cost of capital environment that allows for the various frictions and inefficiencies its introduces into the economy. Today we face sticky inflation (see the huge wage settlement the autoworkers extracted from Ford) and higher for longer interest rates to reflect the very inflationary economic reality brought about by the “new” Ottawa consensus. To this extent I don’t think it will endure for any length of time if inflation doesn’t fall back to the post GFC level and rates don’t follow back down to the zero bound. And its very policy preferences will largely insure this doesn’t come to pass. Its catch 22.
If the CONS win the next election and change the rules for a brighter economy it will only last until the LIBS are bac in power with a lack of fiscal discipline.
The BoC wanted to cool the Econmy. They succeeded? What’s going on over there.? This is simple stuff.