There have been two periods since World War Two when the federal government has increased spending so carelessly that Canada has gone dangerously into debt. The first time was during the 1970s and 1980s under Prime Minister Pierre Trudeau. The second time began in 2020 under Prime Minister Justin Trudeau.
During the 1970s, Pierre Trudeau initiated a period of binge spending to create what he called a Just Society. Social programs were expanded beyond the country’s ability to pay and the administrative bureaucracy in Ottawa was dramatically increased.
No country has ever become wealthier by going deeper into debt, and Pierre Trudeau was essentially using Canada’s credit card to pay the bills. There was massive overspending with no thought of future consequences. Brian Mulroney’s subsequent Progressive Conservative government was unable to get government spending under control and the country encountered a debt crisis. By 1990, public debt charges were the largest single federal government expenditure.
Ironically, it wasn’t until the Jean Chretien Liberal government of the 1990s that the country’s finances were finally tamed, helped along by increased tax revenues generated from a resource boom in Western Canada.
But Justin Trudeau is unwilling to learn the lessons of the past, and like his father, he thinks vast government overspending is a good thing. His finance minister, Chrystia Freeland, has just provided a fiscal update on how Canada can participate in the Great Reset. In short, her plan means almost doubling the federal debt from $721 billion last year to $1.4 trillion in 2025. It’s only a matter of time before the country enters another major financial crisis with public debt charges constituting the largest budget expenditure, thus crowding out needed social spending such as health care.
Justin Trudeau is punching holes in the hull of the ship of state, and the West needs to get out of this sinking vessel, fast. His reckless spending plans will shackle our children and grandchildren with debt burdens that lower their quality of life. An independent West, on the other hand, would be prosperous and enjoy a higher standard of living. Freeland’s economic update just confirms once again the urgency of independence within Western Canada.