Opinion

To Win this Election, Win the Economy Argument

Progressives can, and must, convince they're best for the household bottom line.

By Kevin Campbell 24 Aug 2015 | TheTyee.ca

Kevin Campbell is an investment banker at a securities firm headquartered in Vancouver, B.C. Find his previous Tyee articles here.

This coverage of Canadian national issues is made possible because of generous financial support from our Tyee Builders. Please consider joining.  

image atom
The most vital driver in the economy is you. Which party best understands your bottom line? Photo by Florabela from Your BC: The Tyee's Photo Pool.

Progressives and economic uncertainty go hand in hand. That is among the most enduring myths in electoral politics, exemplified by the blunt absurdity of a recent Conservative TV spot which growled "the NDP would wreck our economy."

My numerous laissez-faire friends even bristle at the term 'progressive' being used at all to describe the intentions of the political left. One once said to me, "The left is great at stealing language: coercive becomes progressive, spend becomes invest."

But progressive really is an apt description. To progress is to move forward towards a destination. That destination is a more just, humane and sustainable society. By virtue of my role in the finance sector, interacting with various entrepreneurs and professionals, I have come to believe there are many muted voices who harbour intellectual and moral sympathies with the left.

To win and govern effectively, progressives must embrace those voices and be creative, bold and specific on economic issues.

Further, without the confidence of the electorate on economic matters, victory will be elusive, if not impossible.

Speaking to insecurity

During this election it is essential to understand that we live in an era of persistent financial insecurity among the majority of the population. Household balance sheets are in a tenuous state throughout the industrialized world, particularly in Canada. This inevitably affects how citizens choose to vote. Healthcare, education, ethics, and the environment -- they all matter a great deal and undoubtedly influence voter behaviour. But the party that secures economic confidence wins elections in this country. Recent precedents tell the story:

Which brings us back to the powerful myth that progressives are inherently weak on issues of economics, investment and job creation. The myth is so powerful that in B.C. voters cling to it even though the NDP has not been in power since 2001. That was a long time ago. China's economy has grown by over 700 per cent since then. Apple's market capitalization has increased by more than 7,000 per cent. Historical perspective is warranted, especially since NDP governments have actually produced a higher share of budget surpluses than those of Conservatives or Liberals since 1980.

In short, it's time this throw-back perception be thrown out as a political anachronism.

Bringing the economy home

The reality is that the parties of the left actually focus heavily on the well-being of the most vital driver in the economy: you. The household. And by that, I do not mean nuclear families alone. I mean any household, including single people, single parents, childless couples and widowers. I mean everyone who orbits around the average or the median, and certainly those who survive on less. The household is the engine to which the rest of the economy responds. It is a strong foundation of employment, consumption and tax revenue that propels everything else in the system.

Corporations and investors simply respond to demand, and aggregate demand is not powered by the top one per cent or even the top 10 per cent. Disposable income flows when we create the conditions for the household to adequately feed, clothe and shelter itself, supported by the opportunity to be healthy and educated.

Case in point: assuming Pacific Northwest LNG actually gets built in this commodity down-cycle, 330 new operational positions will be created, plus another 300 local spin-off jobs. That's fine, but liquefied natural gas has taken centre political stage for three straight years in this province. Meanwhile, the food and beverage industry, which employs 145,000 in B.C., received exactly nothing out of the new BC liquor laws. So remind me which party has their finger on the economic pulse? Remind me how the multiplier effect is supposed to work?

Finally, there is an urgency to this call because as crucial as a more balanced economy is, it is only a first step before the big challenges begin: bolder action around climate change; labour displacement through technology; housing affordability; and whatever else lies in wait.

A Leger poll last week placed "stimulating the Canadian economy" as the top issue for the October election, sequentially followed by the related subjects of "helping middle-class families" and "job creation." The NDP leads on the latter two items and is nipping at Harper's heels on the first. If recent history is any guide, victory will come to the party that evokes the greatest confidence on such issues.

Progressives can, and must, earn that confidence.  [Tyee]

Share this article

The Tyee is supported by readers like you

Join us and grow independent media in Canada

Get The Tyee in your inbox

LATEST STORIES

The Barometer

Tell us a summer story!

Whether it’s a lazy or adventurous summer, whether it happened at home or abroad, a romance or a ritual, we’d love to hear it.

Take this week's poll