A Lesson in Macro-Economics
The non-coincidental rise to power in United States of a demagog and an industry czar has forced the world into an experiment in economic theory on an unprecedented scale. The result will be, as usual, a minor shuffling of the power brokers at the top, and chaos and poverty for those at the bottom. All we can do is hunker down and watch in horror as it all plays out at levels beyond our control.
International Free Trade
For many decades now the accepted economic theory was that free trade was the way to go. Multinational companies reaped the benefits, while depending on governments to ease their way with competing subsidies to attract their business. The losers were the small local companies who couldn’t compete.
The Pushback
Lately, governments have realized what has been going on and were trying to scrabble back the business they were losing to developing economies with cheaper labour and less stringent ecological protection.
The Third Option
But now in America, Elon Musk has decided to go back to the bad old days of free market capitalism and play by the rules of the jungle. He has teamed up with Trump, who dreams of outdoing his buddy Putin by annexing Canada.
And here we are, stuck in the middle. If you thought my recent posts were pessimistic, as I predicted worse economic times to come due to climate change and the cost of reducing greenhouse gasses, you ain’t seen nothin’ yet. Thee’s couldn’t be a worse time for social upheaval. But that’s what power junkies thrive on, because economic trouble means people are more inclined to selfishness and easier to manipulate.
Canada’s other trading partners, especially China, are rubbing their hands together in glee, but the Americans are playing a “divide and rule” game. Their turns will come.
It’s a bad time for us to have Danielle Smith’s selfish games in Alberta, Pierre Poilievre’s bogus right wing economics in Ottawa, and the Liberals at the weakest point in their usual political cycle.
The Bottom Line
While we have no control over what the world is throwing at us, we do have a choice in how we react. The only thing Canadians can do is tighten their belts and turn to each other for help as we have always done in times of trouble. This is going to be a time of sacrifice for the good of the whole. Ask not what your country can do for you…