When the federal budget was tabled last April, Liberal strategists set an ambitious goal of erasing the Conservatives’ lead in the polls before the next election. They were counting on Finance Minister Chrystia Freeland’s budget to win back the support of young people who had massively abandoned the Liberal Party of Canada. The budget’s title — A fair chance for every generation — spoke volumes about the Liberals’ strategy to pull their party out of poverty.
The flagship measure of M’s budgetme Freeland was an increase in the capital gains inclusion rate, increasing the proportion of such gains subject to federal tax.me Freeland had made it a question of tax fairness, insisting that this measure would only affect 0.13% of taxpayers each year, the country’s ultra-rich.
“I would also like to ask the 1% [les plus riches] — actually 0.13% — to consider this: What kind of Canada do you want to live in? she said in a speech last June. A country where the wealthy live in luxury, but in gated communities, behind ever-higher fences, turning to private health care and private jets because the public sector is failing and the anger of the vast majority of the less fortunate is unleashed?
M’s exitme Freeland raised many eyebrows. Some accused her of trying to stir up class warfare for electoral gain. Opposition to the capital gains inclusion rate hike from entrepreneurs, small and medium-sized business owners and doctors completely unsettled the Liberals, who had not seen such a backlash coming. The Liberals lost the public relations battle, and influential members of the business community said Ms.me Freeland discouraged them from investing in Canada.
Not only M’s budgetme Freeland has not helped Prime Minister Justin Trudeau’s government climb in the polls, she has also sowed discord within the Liberal caucus. Once a party star, Ms.me Freeland has reportedly become a liability. Leaks to the Toronto media have reported dissatisfaction in the Prime Minister’s Office with the finance minister and deputy prime minister. Mr. Trudeau’s closest advisers, including his chief of staff, Katie Telford, have reportedly offered to replace Ms.me Freeland to Finance by former Bank of Canada Governor Mark Carney. Mr. Trudeau himself lent credence to the rumour by publicly stating that he had repeatedly tried to convince Mr. Carney to join his government, without promising him any ministerial position.
Mr Carney has yet to respond to the call. In April, he had criticized Mrme Freeland lamenting the lack of measures to stimulate investment and reduce excessive spending. While he increasingly publicly demonstrates his desire to become prime minister by making politically charged speeches, Mr. Carney seems reluctant to join a government that he finds too left-wing and incompetent. He seems to prefer to wait for Mr. Trudeau to leave before launching his political career.
Next week, Trudeau will make history by becoming the seventh-longest serving prime minister of 23 men (and one woman). But nearly nine years into his tenure, there is little sign of a resurgence in the Liberal leader’s popularity. A by-election scheduled for next month in the Montreal riding of LaSalle-Émard-Verdun will do little to boost Liberal MPs’ confidence ahead of the next federal election in the fall of 2025. The NDP candidate in LaSalle-Émard-Verdun, city councillor Craig Sauvé, has a strong chance of winning the riding left vacant by the departure of former Justice Minister David Lametti.
The resignation of Labour Minister Seamus O’Regan from the Cabinet, who will not run in the next election, and the possible departure of Transport Minister Pablo Rodriguez, who is reportedly considering running for the leadership of the Quebec Liberal Party, are signs that the government is running out of steam. Other members of the Cabinet are also said to be preparing to take on new challenges soon.
By trying to place the blame for the Liberals’ misfortunes on Mr.me Freeland, Mr. Trudeau and his advisers still appear in denial. The Prime Minister remains impervious to calls to leave. This is called chasing disaster.