Our Debt, Our Socialism, Our Predicament
Friday, May 4, 2012 at 09:52AM This is an excerpt from the end of Chapter One of The Trouble With Canada .. Still! (BPS Books, 2011)
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The National Debt Prison
Predictably, in order to finance such utopian schemes, it was Trudeau, as we shall see, who after opening the ideological door, also opened the floodgates of irresponsible deficit spending to pay for the most astonishing and rapid period of growth in government staffing and spending in Canadian history. We will soon see that on a per capita basis, this may have been the most astonishing non-wartime expansion of government power of any free nation in history. He inherited a total national debt of $18 billion from our entire first 100 years of confederation in 1968, and raised it to $200 billion (fully 46% of GDP) by 1982, his final year in office. In his most profligate year his government spent fully 51% more than it took in. [see a chart showing this debt load on page 45 of the book]
Trudeau cannot be blamed for all of this, of course. But he established our Statist deficit-spending trend, and in the sense that we are now incapable of paying off our national federal debt, Canada has never recovered. He was followed by a number of prime ministers who continued this reckless habit. By 2008 (and expressed in 2008 dollars since 1968) Canada had spent $1.5 trillion dollars in interest payments alone on our total federal debt, with little to show for it today except the principle amount of the debt.
Perhaps the greatest irony of such irresponsible spending in the name of equality, however, is this: there has never been a socialist State in history more “equal” politically or economically than our free Western societies. Commenting on this fact when the USSR, the world’s most catastrophic test-case for socialism was still in existence, Harvard’s Barrington Moore Jr. wrote that although the determinants of inequality are different – economic in free societies, and political in unfree ones, “there is as much inequality in the Soviet Union as the United States … the same holds true for China.” He failed to mention the small matter that more than tips the scales in favour of free societies: in addition to their inequalities, those two socialist States in total murdered some 80 to 100 million of their own legal citizens.[1] Statism can be very bad for your health.
The Call for “More Democracy”
As the power of the top-down State intrudes more into everyday life, public moral consensus starts to decay, and trust in political leaders, to fragment. Then delegated sovereignty begins to seem alienating. At this point we start to hear calls for a little more “direct democracy,” or “people power.” Not surprisingly, it is usually the rise of the tax-hungry and wasteful Nanny State that spurs the call for more direct citizen input. That is what happened to me.
In fact, this entire book was originally such a reaction, and in it I recommended various instruments of direct democracy because I was certain the traditional way of life of the Canadian people was being betrayed against their true will. We needed “citizen initiatives” such as the Swiss have used for a long time to pass laws directly and by-pass a parliament that refuses to do our will; we needed referendums to give national consent on profound constitutional changes; and we needed “recall,” an instrument used to fire politicians who lie or cheat or radically betray promises to those who elected them. Today I am less certain such measures would improve much, and they might even make things worse, because I think the culture is more fragmented than ever. More on this in the last chapter.
I am still persuaded, however, that over matters so fundamental as a root and branch change of an entire nation – especially with respect to its core community morality, its political institutions or constitution, its basic system of law, its language rights, or its ethnicity - all citizens must be deemed in principle to have a personal stake. In this respect, I think Canada’s all but forced regime-change from a nation in full exercise of its historical English rights and liberties, into a radical welfare State steered by the political ambitions of a single powerful man in the space of two decades (roughly mid-1960s to 1984), while constitutionally legitimate, was morally illegitimate. Indeed, fully one quarter of Canada’s citizens living in the province of Québec refused consent, and one million aboriginal Canadians were never asked.
Even worse, when he came back from the dead for his 1980 election campaign, Trudeau intentionally misled the people of Canada (especially those of Québec) by strategically eliminating all talk of the constitutional changes he was planning. Indeed, his election strategists urged “that he keep silent on the constitution – the issue that he had insisted on stressing [in his losing campaign] the previous May.” [2] So when, on the night of May 16, during his speech to a hushed crowd in Montréal’s Paul Sauvé arena he said he wanted to “take action to renew the constitution,” virtually every Québecer present assumed he meant action to guarantee Québec’s provincial powers and the distinct society status within Canada it craved. Instead, he was plotting to suppress their hopes forever in favour of his national socialist dream. In effect, he lied point blank to the very people to whom he was appealing for support. He also lied to himself as he reluctantly betrayed and reversed his own principle of “reason before passion,” for he had finally accepted his handlers’ advice that political success comes from manipulation of the people’s emotions, and not from reason.[3] With tears in their eyes, they gave him a standing ovation. But it was a fraud: the radical regime-change he was gunning for was never put on the public table, either by him or by the Liberal party. He knew very well that if he had told the people truthfully what he intended, he would never have been elected. What I am calling for is a reasoned re-assessment of these corrosive facts and of the immorality of the Handicap System under which we now live, and thus, plainly speaking, for a reactionary politics.
There is a silenced majority of Canadians deeply upset by these changes who feel that all our political parties are now Statist in orientation - and that is why they only rarely see their deepest values reflected in ordinary media, by courts, or by government. They are discouraged at the number of special-interest groups and projects they are forced to support through tax dollars (such as the $1.3 billion spent since 1973 on radical feminist causes: see Chapter Ten). A silenced people will not march in the street every time they see something they don’t like. Neither have they the time to become experts in fields such as political economy. But they know what they think and feel: they’re fed up, cynical, and worst of all, they’re totally distrustful of the political process—a dangerous climate for any “democracy” because it leads to cocooning and “dropping out.”
The various terms explored so far - the French vs. English styles, the Top-down vs. Bottom-up tension, the Freedom System vs. the Handicap System, Common Law vs. Code Law – all of these paired terms are an attempt to set out a basic philosophical context in which policy can be considered in Canada. In effect, whenever someone offers a political opinion you have only to decipher which of these two conflicting visions of social governance is being promoted, and then the opinion falls more easily into place. The clash of these two styles has been the constant theme - everywhere felt, if not everywhere seen - of Canada’s struggle to govern itself and establish its institutions ever since the Battle of the Plains of Abraham in 1759. One of the impediments to a clear focus on the nature of this ongoing struggle is the existence of what I call the “popular illusions,” and it is to these we now turn
[1] Barrington Moore Jr., Authority and Inequality under Capitalism and Socialism: USA, USSR & China (Clarendon Press: Oxford, 1987).
[2] For a rendering of this, see Peter H. Russell, Constitutional Odyssey: Can Canada Become a Sovereign People? (Toronto: University of Toronto Press, 2004, 3rd edition), Chap 8. See also Janet Ajzenstat,The Once and Future Canadian Democracy (Montreal & Kingston: McGill-Queen’s University Press, 2003). The latter argues that Canadians were fully and legally constituted as “a sovereign people” with the BNA Act of 1867. Very true. My view, however, is that although we were indeed properly constituted as a people in 1867 – it was a very good Constitution - Trudeau and the First Ministers imposed an illegitimate regime-change on us in 1982. They did it under the letter of the law, but not under its spirit - for the reasons explained in this book.
[3] In December of 1973 Trudeau told a TV audience: “Nine-tenths of politics appeals … to emotion rather than to reason. I’m a bit sorry about that, but this is the world we are living in, and therefore I’ve had to change.” (cited in Richard Gwyn, Pierre Elliott Trudeau (Toronto: Fitzhenry and Whiteside, 2006, p.24).

