William Watson: Avi Lewis's Economic Vision Is a Return to Mid-Century State Control
As I grow older, my appreciation for nostalgia deepens, but I draw a firm line at voting for the NDP, despite new leader Avi Lewis's ambitious plans to recreate the Canada of the mid-20th century. Lewis's proposal to establish government corporations in nearly every major sector of the economy is not just a blast from the past—it's a recipe for even slower economic growth and increased bureaucratic inefficiency.
A Nostalgic Look Back at Canada's Economic Model
In the Diefenbaker era, my grandfather took me to Ottawa as a child, where I disappointed him by preferring Canadian National Railway over Canadian Pacific. At that time, the "one public, one private" model seemed to define the Canadian economy. We had Trans-Canada Airlines competing with Canadian Pacific Airlines, CBC alongside CTV, and the Industrial Development Bank keeping private banks in check. Later, in 1975, Petro-Canada emerged under Pierre Trudeau's minority government, with support from Avi Lewis's grandfather, NDP leader David Lewis, serving as a window into the oil industry.
Lewis's Expansive Vision for Government Control
Now, Avi Lewis aims to extend this model far beyond its historical bounds. He advocates for government operators in critical areas such as food distribution, internet providers, residential real estate, banking, critical minerals, pharmaceuticals, and even green manufacturing. This vision is inspired by figures like New York City mayor Zohran Mamdani, whom Lewis has publicly praised, highlighting his alignment with progressive economic policies.
Lewis's enthusiasm for Mamdani's approach was evident in his lengthy celebration of the mayor's victory, which overshadowed his statements on international issues like U.S.-Israeli attacks on Iran or the seizure of Nicolas Maduro. This focus underscores his commitment to expanding state involvement in the economy.
The Inherent Flaws in Government-Led Operations
While government is not inherently bad at all tasks—for instance, my Quebec Pension Plan application was approved quickly—it often suffers from slow, rules-bound procedures. This is partly because governments spend taxpayer money, requiring careful oversight to respect the financial burden imposed on citizens. Additionally, modern governments are typically unionized, and Lewis's proposed crown corporations would likely follow suit, leading to monopolistic power similar to what he criticizes in private companies.
A recent Spectator calculation highlights this issue: British civil servants are 12 times more likely to die in service than to be fired, illustrating the challenges of accountability and efficiency in public sector operations. Such dynamics could stifle innovation and customer service in Lewis's envisioned economy.
Economic Implications of a State-Dominated Landscape
Expanding government corporations across key industries risks creating a sclerotic economic environment. Private competition drives growth and efficiency, whereas state control often leads to stagnation. Lewis's plan, while rooted in a nostalgic view of Canada's past, ignores the lessons of economic history where excessive government intervention has hampered productivity and adaptability.
In an era where global competitiveness demands agility and innovation, reverting to a mid-century model of state dominance could leave Canada lagging behind. The bureaucratic hurdles and unionized structures inherent in government operations may further exacerbate these issues, making Lewis's vision a concerning step backward for economic progress.
Ultimately, while nostalgia has its charms, embracing Avi Lewis's economic policies would mean accepting a future of slower growth and diminished dynamism—a price too high for sentimental yearnings.
