Mark Carney is running the economy like a conservative. And that’s okay

[BeaverFever]

Mark Carney is running the economy like a conservative. And that’s okay
 

 

Kevin Yin is a contributing columnist for The Globe and Mail and an economics doctoral student at the University of California, Berkeley.

Imagine waking up again in early 2025, before the April election. A candidate who you do not recognize steps to the podium and lays out his platform: axe the carbon tax, drop countertariffs on the United States in adherence to free-market doctrine, foster rapprochement with the oil and gas industry, and cancel the capital gains tax hike. Without knowing which party he stands for, you might be forgiven for thinking he is running for the Conservative Party. Alas, this is exactly the approach Liberal Prime Minister Mark Carney has taken. 

That the Prime Minister has now also paused the federal EV mandate only strengthens the case; Mark Carney could just as easily have run as a Conservative. The mandate, which once required Canadian automakers to guarantee that 20 per cent of their sales were electric by 2027, was a hallmark Trudeau-era policy meant to reduce carbon emissions. However, with the automotive sector under tariff pressure from the United States, the Carney government has decided that economic relief is more important at present. It is one more amongst a slew of decisions that make Mr. Carney an ideological blur.

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In fact, many of Mr. Carney’s actions in the first year of his premiership echo the spirit of proposals from the Conservative Party under Pierre Poilievre. Mr. Poilievre’s Conservatives also promised to eliminate taxes on carbon and a deal where Canada would remove tariffs on the U.S. They also stressed the need for cutting red tape on energy projects and infrastructure, as well as advocating for tax cuts for the middle class. And on issues where Mr. Carney came from the left, for example on deficits, the Conservatives were forced to converge to his stance.

Of course, there are still reasons that Mr. Carney fits better within the large-tent Liberal Party, which has historically been home to a diverse leadership ranging from fiscal hawks to advocates of nationalized oil.

He is a technocrat first and foremost, which the party leadership loves, and means circumstances determine policy direction more than ideology. His intention to recognize Palestine is an example where party values coincided with shifting global opinion and geopolitical realism. The Liberal label also gave him more flexibility on deficit spending, which he has made extensive use of – although this election also saw large deficits proposed by the Conservative Party. And while cutting the carbon tax was strategic, it is hard to imagine that Mr. Carney, an economist and former climate envoy to the United Nations, does not himself believe in their efficacy.

Does this mean the Conservative Party was “right” in April? To some extent. Trudeau-ism, which was content to “let the bankers worry about the economy”and argued there was little “business case” for exporting liquefied natural gas, was rankling even moderate Liberals by the end, including his own cabinet. And as tariffs and wars now dominate the agendas of Western capitals, more classically right-wing notions like emphasis on the economy and military build-up are naturally in vogue. In that sense, Mr. Carney is simply responding to the times, and the Conservative Party deserves some credit for its foresight.

Yet the manner and enthusiasm with which one embarks on this is also important.

Whether one endorses tariff concessions to the United States because the costs of retaliation are perceived to be fundamentally too high, or simply as a conditional token of goodwill to reset talks, matters for how our negotiations with the U.S. ultimately play out. Whether one pauses EV sales requirements because of short-run economic realities, or a general failure to accurately weigh the risks of climate change, matters for how we should expect the government to deal more broadly with a rapidly warming planet.

While I do worry about the long-run preservation of our green initiatives, it is perhaps a feature, not a bug, of the Canadian political system that a Conservative candidate can propose large deficits while Liberals can compromise on net-zero objectives. That parties are often not too far apart in actuality and that dogma can give way to rational policy (or at least what is perceived internally to be) when circumstances change is something to be celebrated. In fact it is probably this feature, that Canadians are in greater agreement than we think, that has protected Canada for decades from the worst excesses of U.S. polarization on social issues.

Thus, while reasonable people can disagree on whether Mark Carney should govern as conservatively as he has, it at least says something of the quality of our politics that he does.
 

 

https://www.theglobeandmail.com/business/commentary/article-mark-carney-is-running-the-economy-like-a-conservative-and-thats-okay/
 

 

[Politics1990]

like a PC  not the new consevative.. i mean its not ideal.. but i can live with it  just hopfully once hes done people get fed up and go  full ndp  to get away from  all types of conservatisim  . i doubt it though the ndp keeps shooting itself in the foot .

[herbie]

1 hour ago, Politics1990 said:

like a PC  not the new consevative.. 

And Thank God for that!

Some say Carney's the best Conservative PM we've ever had.

[Shady]

This is some top level gaslighting!  Well done!  LOL

[BeaverFever]

2 minutes ago, Shady said:

This is some top level gaslighting!  Well done!  LOL

How else do you explain the fact that Poilievre is propping up the liberals in parliament and that Stephen Harper is one of Carney’s advisors?

You just have Liberal Derangement Syndrome.

 

[Shady]

20 minutes ago, BeaverFever said:

How else do you explain the fact that Poilievre is propping up the liberals in parliament and that Stephen Harper is one of Carney’s advisors?

You just have Liberal Derangement Syndrome.

 

I don’t know what you mean by propping up the Liberals.  Harper isn’t an advisor, Carney asked for his input regarding Trump.  That’s it.

I look at the fact that Carney is spending even more than Trudeau.  It’s absurd.

[BeaverFever]

7 minutes ago, Shady said:

I don’t know what you mean by propping up the Liberals.  Harper isn’t an advisor, Carney asked for his input regarding Trump.  That’s it.

I look at the fact that Carney is spending even more than Trudeau.  It’s absurd.

So far conservatives have been voting with Liberals in parliament because Carney doesn’t have a majority.  Poilievre will vote to pass Carney’s budget soon too. Poilievre is the new Jagmeet LOL. 
 

Harper said Carney “gets it” and has been giving him advice, just a reversal of back in the day when Carney gave Harper advice and Harper awarded him the Order of Canada, our country’s highest honour. 
 

The spending is what is needed right now, we can afford it as we have by far the lowest net debt to GDP ratio in the G7 and low service ratios, which is why even Poilievre was also campaigning on running massive deficits. 
 

It never ceases to amaze me how some average people who are net beneficiaries of government spending can be so obsessed with ONE abstract metric that is not likely to ever affect them. It’s like worrying that truck a thousand miles away is driving too fast in your general direction 

[BeaverFever]

Canada’s economy is bad. But the U.S. economy is worse

JOHN RAPLEY

SPECIAL TO THE GLOBE AND MAIL

PUBLISHED SEPTEMBER 12, 2025

John Rapley is a contributing columnist for The Globe and Mail. He is an author and academic whose books include Why Empires Fall and Twilight of the Money Gods.

Things may be bad for the Canadian economy, but if it’s any consolation, they may be worse in the United States.

The bad news is that Canada appears to be heading toward a recession. The good news is that, as typically happens in a rapidly decelerating economy, inflation is slowing. That makes the course clear for the authorities. Unless Tuesday’s inflation report from Statistics Canada reports an upside surprise in the inflation figure, the Bank of Canada will likely cut interest rates again at its meeting the next day. And while the federal government aims to cut its spending in its fall budget, lower interest costs and a comparatively low fiscal deficit will allow it some cushion to absorb the increased spending a recession would cause.

With never-ending tariff drama, the Canadian economy limps along

However, the picture emerging of the U.S. economy is a good deal murkier. Recent job numbers paint a picture of an economy which is slowing down rapidly – or not. Job creation has been steadily declining since last year and is now near zero. In manufacturing the layoffs have begun. Yet despite that the unemployment rate remains near historical lows and real wages remain positive (although there are early signs this may be changing). As a result, opinion among economists is deeply divided, with some saying the U.S. economy is already in recession, and some saying it’s doing just fine.

The picture on the inflation front is at least less ambiguous, if concerning. Inflation is proving a lot more stubborn in the U.S. than in Canada. This week’s reports showed that prices keep rising, and food prices are becoming a real problem for Americans. Moreover, price pressures in the pipeline appear to be building further: Although producer prices fell this month, underlying core inflation actually rose. Producer prices gained 2.8 per cent while consumer prices rose by 3.1 per cent – both well above the Federal Reserve’s 2-per-cent target, and both trending upward. There’s some evidence that producers have so far been absorbing the impact of tariffs in order to retain their customers. If they continue to do that, it could eat into their profits, which would ultimately hurt share prices. But if the economy gains speed and consumers keep buying, they could pass on those price increases, driving inflation even further beyond the targets.

U.S. employment growth revised down by nearly a million jobs

These conflicting signals from the economy thus make the task of the Fed a good deal more complicated than the Bank of Canada’s. If the economy is weakening sharply, cutting interest rates at this week’s Fed meeting will soften the blow. But if inflation is rising, such a step could add fuel to the fire. For investors, that raises the risk of long-term bets: Cheaper credit will fuel spending and investment and help drive up share prices, but the risk of an inflation surge could also wipe out all those gains if interest rates go back up in a matter of months.

Amid such rising uncertainty about the economy’s future course, global investors have begun quietly reallocating away from the U.S. The flood of money being unleashed in the U.S. via government spending, tax cuts and reduced credit costs has been quietly leaving the States to go elsewhere. Amid the policy confusion, that is likely to continue, since other countries offer a clearer investment picture. Thus, after years of underperformance, the Canadian stock market has begun to beat the U.S. one.

Nor is this is trend peculiar to Canada. Despite the new records it is setting, the U.S. stock market is underperforming most of its peers’, mainly because one effect of the increasing availability of money in the U.S. is that Americans are joining the rest of the world and taking their dollars elsewhere. Although the U.S. market is now up by more than 10 per cent this year, China’s has risen by 15 per cent, Brazil’s by nearly 20 per cent and Spain’s an eye-watering 30 per cent.

Therefore, a Fed rate cut may do more to juice the Canadian market than the U.S. one. And even though interest rates in Canada are nearly a full percentage point lower than the U.S.’s, the loonie has held its value this year, suggesting continued investor confidence. So, while the situation in Canada may look dire, the country’s prospects for navigating the coming recession don’t look too bad, comparatively. At 6.4 per cent of GDP, the U.S. fiscal deficit is four times Canada’s in proportionate terms and is on track to get worse.

So, when Canada’s next budget is revealed, rather than squawk at the size of a deficit that is all but certain to increase, given the state of the economy, Canadians would do better to peer at the details to determine where the money is going. If it’s being used just to soften the pain, that wouldn’t be good; but if it’s being used to build for the future, shaping the economy that will emerge from the recession, it should be welcomed.
 

https://www.theglobeandmail.com/business/commentary/article-canada-us-economy-inflation-interest-rates/?login=true

Edited September 15, 2025 by BeaverFever

[Politics1990]

1 hour ago, BeaverFever said:

How else do you explain the fact that Poilievre is propping up the liberals in parliament and that Stephen Harper is one of Carney’s advisors?

You just have Liberal Derangement Syndrome.

 

oh god is stephen actually  advising him?

[BeaverFever]

11 minutes ago, Politics1990 said:

oh god is stephen actually  advising him?

See the above thread. At this point it’s not clear if the advice is ongoing or was for a limited period 

Edited September 15, 2025 by BeaverFever

[August1991]

On 9/15/2025 at 10:30 AM, BeaverFever said:

 

....

In fact, many of Mr. Carney’s actions in the first year of his premiership echo the spirit of proposals from the Conservative Party under Pierre Poilievre. Mr. Poilievre’s Conservatives also promised to eliminate taxes on carbon and a deal where Canada would remove tariffs on the U.S. They also stressed the need for cutting red tape on energy projects and infrastructure, as well as advocating for tax cuts for the middle class.

...

 

On average, Quebecers nowadays have half the income of Albertans - each Quebecer produces half as much as an Albertan.

(Do the numbers.)

And Albertans, on average, are poorer than Americans.

Edited September 17, 2025 by August1991

[BeaverFever]

12 hours ago, August1991 said:

On average, Quebecers nowadays have half the income of Albertans - each Quebecer produces half as much as an Albertan.

(Do the numbers.)

And Albertans, on average, are poorer than Americans.

What numbers exactly?

[LinkSoul60]

6 minutes ago, BeaverFever said:

What numbers exactly?

Not quite half....   +2.3% / $1158 to be exact

Alberta has a higher average income than Quebec. The average annual salary in Alberta is approximately $50,631, while the average annual salary in Quebec is about $49,473, as reported by ZipRecruiter and ZipRecruiter. 

 

 

 

Edited September 17, 2025 by LinkSoul60

[Army Guy]

2 hours ago, LinkSoul60 said:

Not quite half....   +2.3% / $1158 to be exact

Alberta has a higher average income than Quebec. The average annual salary in Alberta is approximately $50,631, while the average annual salary in Quebec is about $49,473, as reported by ZipRecruiter and ZipRecruiter. 

 

 

 

Maybe it is time to start shrinking those transfer payments let Quebec and the Maritimes stand on their own feet...

[Army Guy]

On 9/15/2025 at 11:39 AM, Politics1990 said:

like a PC  not the new consevative.. i mean its not ideal.. but i can live with it  just hopfully once hes done people get fed up and go  full ndp  to get away from  all types of conservatisim  . i doubt it though the ndp keeps shooting itself in the foot .

At least your still hopeful, but the funeral has already happened....

[Shady]

15 hours ago, August1991 said:

On average, Quebecers nowadays have half the income of Albertans - each Quebecer produces half as much as an Albertan.

(Do the numbers.)

And Albertans, on average, are poorer than Americans.

Yep.  We are in the midst of a productivity crisis.  Just another Liberal caused crisis that's helped degrade our standard of living.  Our per capita GDP used to be on par with the United States.  Now it's at about 60%.   

[Army Guy]

On 9/15/2025 at 1:58 PM, BeaverFever said:

How else do you explain the fact that Poilievre is propping up the liberals in parliament and that Stephen Harper is one of Carney’s advisors?

You just have Liberal Derangement Syndrome.

 

There is still a lot of liberalism going on to keep liberals happy, and enough to keep conservatives posting here.... Still an industrial carbon tax, gun grab, massive debts, US tariffs, the list is still ongoing....that being said i hope the best policies keep being used ....but as far as both parties meeting in no mans land and giving out hugs and singing kum ba ya we are far from that happening....

[August1991]

On 9/17/2025 at 1:05 PM, LinkSoul60 said:

Not quite half....   +2.3% / $1158 to be exact

Alberta has a higher average income than Quebec. The average annual salary in Alberta is approximately $50,631, while the average annual salary in Quebec is about $49,473, as reported by ZipRecruiter and ZipRecruiter. 

 

 

 

ZipRecruiter? Cdn $24/hour?

===

ChatGPI:

According to Statistique Canada data, Alberta's nominal GDP per capita in 2023 was $70,876, while Quebec's was $49,023

[LinkSoul60]

On 9/19/2025 at 4:03 PM, August1991 said:

ZipRecruiter? Cdn $24/hour?

===

ChatGPI:

According to Statistique Canada data, Alberta's nominal GDP per capita in 2023 was $70,876, while Quebec's was $49,023

You are correct.   My quick google AI search was just that...artificial, or I errored.  My bad....

[herbie]

OMG $24/hr is their bragging point to draw employees? A garbageman makes $36 here....

OMG postponing environmental regs for a year or two is not totally abandoning them as PP proposes, nor is fast tracking things in the national interest. Carney's not proposing building them with public funds, but the way the Tories whine it leaves the impression they will. And some out there are dumb enough to believe they would go 1000% against basic conservative ideals and do just that.

[August1991]

More Important: Mark Carney is Justin Trudeau/Pierre Poilievre - without the, uh, baggage. 

Edited September 21, 2025 by August1991

[BeaverFever]

4 hours ago, August1991 said:

without the, uh, baggage. 

Well he’s been travelling so much lately it was bound to get lost in an airport somewhere. 

On 9/19/2025 at 7:03 PM, August1991 said:

ZipRecruiter? Cdn $24/hour?

===

ChatGPI:

According to Statistique Canada data, Alberta's nominal GDP per capita in 2023 was $70,876, while Quebec's was $49,023

Gdp per capita is not the same as average income 

[herbie]

My 2 yr old grandson makes nowhere near $24 an hour! Hell it would take more than $24/hr for me to babysit the brat.

[August1991]

On 9/17/2025 at 4:15 PM, Shady said:

Yep.  We are in the midst of a productivity crisis.  Just another Liberal caused crisis that's helped degrade our standard of living.  Our per capita GDP used to be on par with the United States.  Now it's at about 60%.   

Ordinary Americans work hard and produce stuff.

On average, Albertans produce less than Americans.

Quebecers produce less than Albertans - but they produce more than Europeans.

====

Ordinary Americans work smart.