Diane Francis: The inevitable Trudeau recession will ravage the West and the middle class

Diane Francis: Prime Minister Justin Trudeau has mishandled Canada’s relationship with the United States and the Canadian economy as a whole. Blair Gable/Reuters files

It is necessary to indicate that Trudeau’s “hot mic” video mocking President Donald Trump behind his back at the NATO conference is a great diplomatic mistake. In addition, we must not forget that Trudeau has mishandled Canada’s relationship with the United States and in some ways the Canadian economy in general.

No doubt it is extremely important that Trudeau knows that, as the Prime Minister of Canada, his main foreign affairs work is to ensure Canada’s relationship with the United States. In fact, whether people like it or not, good relations with the United States are one of Canada’s two most important assets. The other is the spectacular endowment of resources in the country.

Certainly, there are many opinions that agree that Trudeau has degraded the value of both assets to the detriment of all Canadians. All this will be very expensive as the country faces a recession due to a global slowdown combined with the damage inflicted on the country’s oil industry.

Pressure that will increase

Something that is more than certain is that Trump will now push even more for Canada to fulfill its NATO promise to spend two percent of GDP on national defense. Currently, spending is 1.3 percent. Trump sent a letter before the conference on this and challenged Trudeau at a press conference there. But now, after the incident, Canada will have to pay, one way or another.

Likewise, Trudeau has mishandled the country’s other assets, resources, and the Canadian economy in general. The rhetoric, legislation and taxes against development and against the pipelines of his government caused a massive flight of capital to the United States.

As a recession looms, western Canada will be further damaged. If the bills of liberals C-69 and C-48 are not eliminated, and if exports are not increased through the construction of many more pipe projects, the development of new resources within the country will disappear.

In addition to this, it could be said that a recession will devastate the middle class due to this economic damage and the failure of Ottawa to act in the face of the avalanche of tens of billions of dollars washed into the real estate of Toronto and Vancouver. This has raised costs, mortgage debt and living expenses.

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Source: Diane Francis | Financial Post