Quotulatiousness

April 5, 2023

Justin Trudeau chooses the Argentinian model over the Canadian model

In The Line, Matt Gurney considers the proposition that “Canada is broken”:

To the growing list of articles grappling with the issue of whether Canada is broken — and how it’s broken, if it is — we can add this one, by the Globe and Mail‘s Tony Keller. I can say with all sincerity that Keller’s is one of the better, more thoughtful examples in this expanding ouevre. Keller takes the issue seriously, which is more than can be said of some Canadian thought leaders, whose response to the question is often akin to the Bruce Ismay character from Titanic after being told the ship is doomed.

(Spoiler: it sank.)

But back to the Globe article. Specifically, Keller writes about how once upon a time, just over a century ago, Canada and Argentina seemed to be on about the same trajectory toward prosperity and stability. If anything, Argentina may have had the edge. Those with much grasp of 20th-century history will recall that that isn’t exactly how things panned out. I hope readers will indulge me a long quote from Keller’s piece, which summarizes the key points:

    By the last third of the 20th century, [Argentina] had performed a rare feat: it had gone backward, from one of the most developed countries to what the International Monetary Fund now classifies as a developing country. Argentina’s economic output is today far below Canada’s, and consequently the average Argentinian’s income is far below that of the average Canadian.

    Argentina was not flattened by a meteor or depopulated by a plague. It was not ground into rubble by warring armies. What happened to Argentina were bad choices, bad policies and bad government.

    It made no difference that these were often politically popular. If anything, it made things worse since the bad decisions – from protectionism to resources wasted on misguided industrial policies to meddling in markets to control prices – were all the more difficult to unwind. Over time the mistakes added up, or rather subtracted down. It was like compound interest in reverse.

And this, Keller warns, might be Canada’s future. As for the claim made by Pierre Poilievre that “Canada is broken”, Keller says this: “It’s not quite right, but it isn’t entirely wrong.”

I disagree with Keller on that, but I suspect that’s because we define “broken” differently. We at The Line have tried to make this point before, and it’s worth repeating here: we think a lot of the pushback against the suggestion that Canada might be broken is because Canada is still prosperous, comfy, generally safe, and all the rest. Many, old enough to live in paid-off homes that are suddenly worth a fortune, may be enjoying the best years of their lives, at least financially speaking. Suggesting that this is “broken” sometimes seems absurd.

But it’s not: it’s possible we are broken but enjoying a lag period, spared from feeling the full effects of the breakdown by our accumulated wealth and social capital. The engines have stopped, so to speak, but we still have enough momentum to keep sailing for a bit. Put more bluntly, “broken” isn’t a synonym for “destroyed”. A country can still be prosperous and stable and also be broken — especially if it was prosperous and stable for long enough before it broke. The question then becomes how long the prosperity and stability will last. Canada is probably rich enough to get away with being broken for a good long while. What’s already in the pantry will keep us fed and happy for years to come.

But not indefinitely.

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