Commentary
Tax cuts were the theme for the top two contenders in the first week of the federal election. Both Pierre Poilievre and Mark Carney promised to cut income taxes, carbon taxes, and GST on new home purchases. The parties have identified cost-of-living challenges as a top concern for Canadians, and they are responding to it. People react when they see direct impacts of policies that hit their pocketbooks.
But politicians need to be speaking about the bigger economic picture. Canada’s growing debt, flatlined GDP per capita growth, and reduced productivity compared to other developed nations are top concerns among those who understand broader economic issues. Unfortunately, financial literacy among the public is in decline, and only a minority of people pay attention to macroeconomic trends. Politicians don’t win by campaigning to the minority, so they pander to the economically indifferent majority. While that may be a winning electoral tactic, Canadians will lose in the long run….