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Welcome to the new Canada, where on Monday the Liberal government launched a grand experiment in retrograde economic policy. It deserves a name. When the Soviet Union began to collapse back in the 1980s under the weight of too much central planning, Mikhail Gorbachev brought in Perestroika, economic reforms aimed at reducing the role of central planners, bureaucrats and politicians by increasing economic reliance on markets. Canada is now moving in the other direction.
The 724-page Liberal budget, a document worthy of the great Gosplans that dominated Soviet economic life, lays out a massive increase in government spending and debt in a document whose essential aspect is to weaken the role of markets and enhance the power of government and planners.
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