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Saturday, October 24, 2015

'Are Canadian Progressives Showing Americans the Way?'

Miles Corak:

Are Canadian progressives showing Americans the way?: Reflecting on the recent outcome of the Canadian election, in which the Liberal Party of Canada cast itself as a progressive left of center party and reversed its fortunes in a major way to win a strong majority government, Larry Summers wrote in the Washington Post that “More infrastructure investment is not just good economics. It is good politics. Let us hope that American presidential candidates get the word!” ...
Paul Krugman echoes the same sentiment in a New York Times column entitled, somewhat inappropriately, “Keynes Comes to Canada.” ...
There is something ... that both countries share, and something they don’t, that sets an important backdrop.
Both countries have a significant need for important public sector investments in physical, and I would also say social, infrastructure. The populace sees this need as much in Canada as in the United States.
In Montreal, concrete slabs have fallen off of expressway overpasses, and killed unfortunate commuters. In Toronto, the gridlock associated with the commute to work is more than just a daily aggravation; it is a significant block to economic growth. In Vancouver, expansions in public transit are in need of significant funding. And the majors and city councils in countless municipalities battle with the need to update sewers and roads.
Both countries have this need, but in the US it is a harder sell. In a poll that I conducted with EKOS and The Pew Charitable Trusts, we found that the most significant difference in values on the two sides of the borders has less to do with philosophical issues associated with how to define a good life, but rather the role of government. Americans are much more likely to see government as hindering rather than helping them to achieve their personal goals.
My own view is that this comes down to a different view on the efficiency of government by a significant fraction of the population in the two countries. Canadians are much more likely to see government as a tool or a means to an end, Americans to see it as too inefficient and incapable of helping them accomplish their goals. A significant fraction of Canadians continue to have—in spite being told otherwise for a decade by their out-going conservative Prime Minister—a certain trust in the capacity for collective action through the public sector. Americans have seen too many failures to feel otherwise.
So in fundamental ways, Canadians may be more receptive to the message that Mr. Summers and Mr. Krugman would like to send Americans. ...

[In the full post, which is much longer, he discusses other important differences as well.]

    Posted by on Saturday, October 24, 2015 at 12:39 AM in Economics, Fiscal Policy, Politics | Permalink  Comments (109)


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