In UnHerd, Marshall Auerback details some of the Canadian connections of Britain’s new PM:
British Prime Minister Liz Truss, 1 May 2022.
Official portrait via Wikimedia Commons.
Faced with soaring costs of living, increased collateral damage from the war in Ukraine, and widening national inequality, Liz Truss seemed curiously optimistic in her first speech as Prime Minister. What could possibly be driving such bullishness? Absent any sign of a coherent plan of action, we might find her motivation in an Instagram post from 2018, where Truss cited the time she spent in Canada as a teenager as “the year that changed my outlook on life … #pioneercounty #optimism #maplespirit”.
As profound an impact as that year might have had on Truss’s optimistic psyche, she would do well to look more closely at Canada’s faltering “success story” in recent years. Today, the country is no longer the land of milk and honey (even if it does still produce a fair amount of maple syrup), but suffers many of the same problems as the UK, and a number that are significantly worse: rising inflation, profound income inequality, the challenges posed by climate change, and an increasing host of social problems — not least the mass stabbing spree last weekend in Saskatchewan that left 10 people dead.
However, to the extent that the Trudeau Administration has attempted to remedy some of these problems, there are clear lessons for Truss. Unlike in the UK, many of Canada’s energy problems are largely self-inflicted, a result of a progressive government ignoring its comparatively resource-rich environment, even as its European allies (including the UK) suffer severe consequences of being cut off from Russian gas supplies and the corresponding rise in energy prices.
A few weeks ago, German Chancellor Olaf Scholz visited Canada to secure more gas for his country. This being Canada, the German Chancellor was treated politely, but the underlying plea for Ottawa to increase liquefied natural gas (LNG) production to offset the loss of Russian gas was given short shrift. The Canadian government, one of the biggest producers of natural gas in the world, has misgivings about whether becoming an even bigger producer and exporter would actually be profitable.
Leaving aside the broader debate as to whether the dangers of man-made climate change have been confounded with natural weather and climate variability, natural gas, although a fossil fuel, emits roughly half the amount of carbon dioxide when combusted in a new, efficient natural gas power plant. This would suggest that Canada’s absolutist stance is not only a major geopolitical mistake, but also an economic own goal. The country is foregoing a major growth opportunity, which would both alleviate global inflationary pressures by increasing the supply of natural gas to the global markets, while simultaneously enhancing the prospect for a plethora of new high-paying jobs that would buttress Canada’s declining middle class.
Canada is also home to substantial supplies of copper, nickel, lithium, and cobalt — all of which will be essential to producing the infrastructure required to transition from fossil fuels to greener sources of energy, such as wind and solar. But mining itself remains a “brown” industry, one that creates substantial carbon emissions and environmental degradation. It seems conceivable, then, that the Trudeau government’s green energy purity could soon discourage the increased mining activity needed to facilitate this energy transition.
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Yet in many respects, Canada’s problems are more easily resolved, given that so many are self-inflicted. And not only are there ample natural resources to offset the current energy crisis, but also broad institutional mechanisms to alleviate regional inequalities. Canada, then, cannot provide all the solutions that Truss needs. For all her boosterism, Britain remains a country fatigued by her party’s ongoing political churn and the non-stop travails still emanating from Brexit. If she is to succeed, Truss must begin by removing her rose-tinted view of Canada. The Great White North can certainly serve as an inspiration — but that is all. Canada may have changed Truss’s “outlook on life”. But if Britain is to “ride out the storm”, as she suggested yesterday, an entirely new approach is needed.
