TORONTO – It is fashionable to beat one’s chest and utter phrases, if not chants, of support for some imagined concept of sovereignty and what “glory” comes from extolling the virtues of being “free”. It is all the more charming if that happens in the context of a cold shower, thanks to the Trumpian puppet master dictating where, what and with whom Canada will engage.
Policy makers in Ottawa and in our provincial/territorial capitals often project a less than overtly coherent or united front in this regard. They cannot be blamed entirely. After all, Canada is a federation of semi-autonomous geopolitical entities flexing their adolescent jurisdictional muscles, much like testosterone laden muscles of teenage competitors in athletic competitions.
Canada is a young country in history, demographically diverse and with political “ideologies” that in and of themselves impede unified expression of common interests. What would one expect of such a demographic spread over a land mass the size of Europe yet with only 10% of that continent’s population.
It is tough enough to get any agreement on the movement of people and goods across some of the geopolitical borders we define as provincial/territorial; what do we require respect for the “unique nations“ that inhabit them? Quebec, for example, aside from its distinct position in the Constitution had its population declared as a nation by the Parliament of Canada when harper was prime Minister. The over 650 Aboriginal, First Nations, Inuit Metis peoples demand no less.
Nor should they. The real issue is, as always, who pays and how much. President Donald Trump is now the main – if not only – determinant factor in our budgetary direction. We could play with figures to prove the point, but we would be at it for the entire year. The important fact to keep in mind is that our government(s) spend money to achieve our collective goals and taxes us to meet the obligations. So, consider the following.
Canada had a Gross Domestic Product of $2.56 Trillion. According to Budgetary estimates, the federal government has about $1.4 trillion of debt and this fiscal year expects to spend approximately $450 billion to meet its obligations, including debt service costs (interest on the loans to run programs). Its national government spends about $470 Billion to meet expectations of its citizens.
That might be acceptable after an internal debate within Canada because Canadians determine the priorities. In Defense, for example, Canadians had determined that $40 Billion for military expenditures and related policies was sufficient. Donald Trump demanded we spend 2% of GDP of Defense, or approximately an additional $9 Billion annually more. Just as Canada was trying to meet that target for some time in the future, Trump raised the stakes to 5% of GDP. Assuming a GDP at stable rates discounted for inflation, we would be looking at a sum in the vicinity of $100 Billion annually by the target date. What do we sacrifice to reach that target set by Trump.
