Conrad Black: It’s Time for Canada to Take Advantage of Its Astounding Treasure House of Natural Wealth

Commentary

It seems that Canada and the United States are headed towards a soft landing, avoiding a recession, and witnessing a decline in inflation to more manageable levels. However, the impact of the COVID pandemic cannot be overlooked, as it led to a significant recession with far-reaching consequences such as psychological damage, economic disruptions, and a decline in education standards. This recession was essentially a result of the mishandling of the pandemic, which was exacerbated by the fact that China, the origin of the virus, managed to profit from it while containing its spread domestically.

While the current reduction in inflation is a positive development, it is important to acknowledge that the rapid rise in inflation over the past five years was unwarranted. Historically, societies dealt with periods of deflation without major issues, and inflation was not a prevalent problem. However, the onset of the Great Depression in 1929 changed economic policies, leading to a continuous expansion of the money supply to curb poverty and unemployment. This approach normalized moderate inflation as a preferred economic trend, despite its potential drawbacks.

Canada, with its abundant natural resources, has the opportunity to adopt a unique fiscal and monetary policy by considering a return to a hard currency system. By pegging the Canadian dollar to a combination of gold, oil, and essential food staples, the country can instill fiscal discipline and attract investment. This approach, coupled with tax incentives for investments in Canada, could boost economic growth and strengthen the national currency, enhancing Canada’s global influence.

We managed to keep up with the growth, even during the years of Sir Wilfrid Laurier as prime minister (1896–1911) when immigration rates were nearly 5 percent of the population annually. Our economic growth also matched America’s level. Despite recent challenges in the United States, it has managed to stay ahead of the People’s Republic of China to become the world’s largest economy. However, we have failed to keep up with America’s economic growth and increased per capita annual income.

If we do not get our finances in order and make use of our abundant natural resources instead of shunning them and attacking the oil and gas industry, we will soon become an economic backwater.

The views expressed in this article are the author’s opinions and do not necessarily represent those of The Epoch Times.