Canada’s previous government was conservative in many ways, including economic and foreign policy. Most critically they were strong supporters of Israel and suspicious of Obama’s nuclear deal with Iran.
Trudeau has won a commanding victory. I am reminded of the Tony Blair victory in the UK when Blair had a commanding majority too. Blair inherited a strong economy but squandered his political mandate and his Labour Party successor, Gordon Brown, left the UK deeply in debt, following the 2008 financial crisis. History is now proving that Blair’s vanity dragged the UK into the Iraq war.
The context for Trudeau offers many dark clouds – lower commodity prices have deeply questioned the competitiveness of Canada’s industry. Like in Australia, too many people in Canada are deeply exposed to the next property bubble.
I sense that the young Trudeau may want to outshine his famous father and could well take Canada up a number of high-risk paths. The danger signs will be borrowing, bloated bureaucracies in the public sector and uncompetitive industries. The greater the risks, the weaker the Canadian Dollar. Perhaps, Trudeau’s legacy will be to open up Canada to mass-tourism on the back of a falling Canadian Dollar?