When this magazine was founded in 1977, the prime minister was named Trudeau. We’ve come full circle.
Like his father, Justin Trudeau appears poised to chart a values-based course for Canada. And his party’s strong performance in Quebec ridings gives him leverage to promote federalism and progress toward a Canada that embraces inclusion.
Economically, though, Justin Trudeau faces a very different Canada than did his father.
Pierre Trudeau swept to his majority amid the economic euphoria of the late 1960s. But, as early ’70s oil shocks spiked inflation and worsened a U.S. recession, demand for Canadian goods slipped. Cross-border trade was also hit by Nixon-era import surcharges and a 1970 inflation-fighting decision to float the Canadian dollar against world currencies, which led our dollar to reach US$1.04 in 1974. Recessionary pressures meant Canadians paid more for goods and services, causing those who lived through Trudeaumania-1 to recall it as a time when the country did great things, while daily life was expensive.
Justin, by contrast, will feel obliged to maintain the relative strength of Canada’s economy vis-à-vis those of other countries. Should our current technical recession worsen, constituents and opposition parties will be quick to lay blame. The new prime minister also has stated a willingness to incur deficits to invest in infrastructure, and indicated he’ll soon start the process of fulfilling a campaign pledge to enhance CPP.
Done right, enhancing CPP could stand among the young Trudeau’s lasting legacies. And the naming of pension and benefits industry veteran Bill Morneau to the post of finance minister suggests all aspects of the Canadian retirement funding mosaic will be considered during what’s sure to be a lengthy legislative process.
The ensuing debate will keep the issue of properly funding Canadian retirements squarely before the public—where it belongs.
Philip Porado is Content Director, Advisor and Financial Services Group, Rogers Media
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