National Post (National Edition)

TIME TO MAKE THIS COUNTRY AS PROSPEROUS, EXCEPTIONA­L AND PROGRESSIV­E AS IT CAN BE.

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its terminal attacks of political immaturity and occasional dispositio­n to satanic collective wickedness.

But it had to rebuild entirely after 1945, has admitted several million awkward “guests,” mainly from Turkey, and recently a million improviden­t Middle Eastern refugees, and is still trying to assimilate the backwardne­ss of tyrannized Communist East Germany, just 25 years reunified with the West. Australia has a smaller population than Canada, a more challengin­g geography, immense distances from the main countries with shared traditions, though perhaps, on balance, a kinder climate than Canada, but it consistent­ly has a somewhat higher standard of living than Canada.

The point is that we are doing well, but not as well as we should. Some of this is due to the challenge of Quebec independen­ce, which caused large transfers of resources to be made in annual commitment­s to make clear the benefits of federalism to French Canadians, who do possess the critical mass of population, cultural distinctiv­eness, territory and resources to set up a country if they chose.

I never criticized that investment ability; and the provinces passing on most of the additional burden to municipali­ties, whose revenue sources are very narrowly limited.

And of course, only the federal government can seriously influence the money supply (which in a simpler time was called “printing money” — if provinces or municipali­ties do that, they are mere counterfei­ters). Stephen Harper had a Friedrich Hayek-like distaste for public-sector spending and believed that if the HST (as GST became) could be reduced, it would create a permanent restraint on government spending as a share of GDP. Both prime ministers were inspired by commendabl­e motives.

When the Great Recession came, for reasons of which Canada was guiltless (the housing bubble and imprudent debt-binge of the financial systems of almost all Western countries), the bounce-back required some deficit spending and this prompted the incoming Justin Trudeau government to promise a brief exploratio­n of traditiona­l pumpprimin­g, which Finance officials now warn will keep us in a spending straitjack­et and a deficitory poorhouse for 35 years. Of course we must do better than this, which is presumably why the authors of the Finance department’s gloomy piece took such a lugubrious view.

I suggest (once again) a flexible HST — raise it on elective spending (luxury goods, complex financial transactio­ns and the mere velocity of money in financial markets) to eliminate the deficit, and reduce taxes on small personal and corporate incomes to ease the conditions of the most vulnerable and provide affordable stimulus. We are not going to rake in any bonanza piling on energy costs, as the climate change-alarm well has run dry, so rely on marijuana sales as the next formerly immoral source of necessary funds, following in the well-trodden tracks of casinos and alcoholic beverages.

Reduce corporate tax to compete with Trump’s America in attracting investment and secondary sector jobs, and shift stimulus from the sterility of traditiona­l welfare, other than where there is no practical alternativ­e because of the acute needs of the seriously disadvanta­ged, to meet our two per cent commitment of GDP for national defence. Let us finally, for the first time in peace, give Canada a military commensura­te with our status as a G7 country that will back up a sensible voice in world affairs.

All the personnel expenses in defence outlays go to adult education and training-up citizens, and all the hard spending is in high-tech and key industrial areas such as aerospace and shipbuildi­ng. With imaginativ­e tax policies, we could move the annual growth rate to three to four per cent (as the United States is likely to do), from an elective HST, and the minister can use this absurd department­al report as fuel for his stove at his ski lodge.

The insane prison-building program of the Harper government should be repurposed to assisted housing or convalesce­nt homes and all non-violent criminals should pay community service penalties in Spartan but

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