Canadian news media have been reporting enthusiastically that a President Harris administration would follow President Biden’s policies regarding Canada. Some, brimming with optimism, have also pointed out that her formative years were spent in Canada and not in the USA, although she now tries to omit this point. But yes, in general, the platform she announced during the recent Democratic convention echoes a number of policies advanced in Canada by Prime Minister Trudeau.And that should really tell you all that you need to know.But let's back up. Her acceptance speech had something for everyone. From a more critical perspective, it was an attempt to be a left-wing-populist full of promise of the utopia soon to come. Food costs too much, she will fix it. Unions will be strengthened. She will help you buy a house and make sure the construction industry builds more housing for everyone. You want tax credits, she has them. Medical costs are too high, she will lower them. Not making enough money? She will raise the minimum wage. Just rub the Democratic Party’s magic lamp on election day and the Genie Kamala will grant your wishes.The Democrats like unions because they donate lots of money to Democrats, even when their members do not support Democrats. She will force more people into Obamacare (the Affordable Care Act) to control costs. Obamacare works about as well as the Veterans Health Administration, which is to say it's terrible. America needs a good healthcare alternative to the private healthcare system.But Obamacare is more of a political act than a healthcare program.There are two examples that will help illuminate what her “joy” talk will produce. The first is how she will help pay for everything. Reports indicate that she wants to increase the capital gains tax: When added to the states’ capital gains rate, it would be over 50%. A new wealth tax on unrealized gains of 25% is proposed. For high-income taxpayers there would be an increase in medicare tax, investment income tax, top marginal income tax, a minimum income tax, and changes in the tax code in various ways lessening deductions. There would also be an increase in personal income tax top rate to 39.6%. Corporate income tax rate will be increased to 28% which is higher than China’s, corporate minimum tax rate increased to 21%, and global minimum tax would be set at 20%. She is also proposing to increase benefits such as the child tax credit, help for first time home buyers, expanded tax credits and paid leave, equity for all the right people, easier access to capital, support for (women, minority owned) small business, and increased support for low-income Americans. This is a formula for destroying the US economy. Her proposed various individual tax increases, capital gains tax, unrealized gains tax, will force many people to stop investing. Most middle-class Americans are investing with their pensions, through retirement savings plans. Like Biden she promised no new income tax increases on individuals making under $400,000. But this is part of a bait-and-switch scheme. Corporations pass on the tax they are charged to customers. They act like the revenue service in gathering tax money. Yes, one’s income tax is not going up, but everything you buy is and the increase goes to the government as “corporate” tax. The increased taxes on corporations will also dampen investment of all kinds. The US stands to lose trillions in investment, as foreign investors pull their money out of the US market. The supposed revenue from increased taxes of all kinds will not be realized. Vice-President Harris is already saying she will borrow more money to help fund her programs and with the unrealized revenue, that means trillions in new debt.The second example is how California has been managed. The higher minimum wage forced many fast-food restaurants to close their doors. Small businesses packed up and moved out of state. The higher tax rates on almost everything have also forced business, even large business, to move out of state. The nightmare of regulations makes doing anything a costly and time-consuming endeavour. Stagnant wages and the high cost of living are further reasons for California’s failings leading to significant revenue loss. With the Wagner-Steagall Act (1937) the US federal government in cooperation with local governments funded housing construction. After the war, places like Chicago used this money to increase high density housing. One location is exemplary. An area just north of downtown Chicago came to be called Caprini-Green. Saint Caprini was a Catholic nun working in one of Chicago’s Little Italys, the location that was destroyed to make the new housing project, and partially named after her. By the 1970s Caprini-Green had become a collection of high-rise ghettos infamous for murders, assaults and drugs. The US federal government “encourages” building high density (urbanized) new housing. There is no reason to think that the current US federal government is any smarter than the government under FDR. The Canadian angle here? High density housing uses more concrete and steel and so we cannot expect a significant increase in Canadian wood products being sold, too bad British Columbia. Vice President Harris cast the deciding vote for the Income Reduction Act of 2022, which was in part a repackaged Green New Deal. The US’s Green New Deal is similar to the draconian environmental regulations enacted under PM Trudeau. Another Canadian angle... Sorry Alberta, whatever happens south of the border under a Pres. Harris will exclude you and some of Saskatchewan, Newfoundland and Labrador.There is already talk about price controls on groceries. Rental housing cannot be far behind. The US tried price controls under Pres. Carter and Pres. Nixon. Both times it led to shortages in supplies and services, decreased quality, inefficient allocations, a larger black market and greater political corruption.VP Harris, like so many politicians, is poorly educated in practical economic principles. Her solution for every problem is increased statism. More government means more money going into non-productive uses. Her proposals will not bring about the Democratic utopia but will increase suffering for most Americans just like in Biden’s economy and probably worse.The trouble is, the US is Canada’s number one customer. If their economy falters, Canada will not prosper under a President Harris. We have every reason to be concerned. And Canadian media should dig a little deeper before pouring on the love for Kamala Harris.Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.
Canadian news media have been reporting enthusiastically that a President Harris administration would follow President Biden’s policies regarding Canada. Some, brimming with optimism, have also pointed out that her formative years were spent in Canada and not in the USA, although she now tries to omit this point. But yes, in general, the platform she announced during the recent Democratic convention echoes a number of policies advanced in Canada by Prime Minister Trudeau.And that should really tell you all that you need to know.But let's back up. Her acceptance speech had something for everyone. From a more critical perspective, it was an attempt to be a left-wing-populist full of promise of the utopia soon to come. Food costs too much, she will fix it. Unions will be strengthened. She will help you buy a house and make sure the construction industry builds more housing for everyone. You want tax credits, she has them. Medical costs are too high, she will lower them. Not making enough money? She will raise the minimum wage. Just rub the Democratic Party’s magic lamp on election day and the Genie Kamala will grant your wishes.The Democrats like unions because they donate lots of money to Democrats, even when their members do not support Democrats. She will force more people into Obamacare (the Affordable Care Act) to control costs. Obamacare works about as well as the Veterans Health Administration, which is to say it's terrible. America needs a good healthcare alternative to the private healthcare system.But Obamacare is more of a political act than a healthcare program.There are two examples that will help illuminate what her “joy” talk will produce. The first is how she will help pay for everything. Reports indicate that she wants to increase the capital gains tax: When added to the states’ capital gains rate, it would be over 50%. A new wealth tax on unrealized gains of 25% is proposed. For high-income taxpayers there would be an increase in medicare tax, investment income tax, top marginal income tax, a minimum income tax, and changes in the tax code in various ways lessening deductions. There would also be an increase in personal income tax top rate to 39.6%. Corporate income tax rate will be increased to 28% which is higher than China’s, corporate minimum tax rate increased to 21%, and global minimum tax would be set at 20%. She is also proposing to increase benefits such as the child tax credit, help for first time home buyers, expanded tax credits and paid leave, equity for all the right people, easier access to capital, support for (women, minority owned) small business, and increased support for low-income Americans. This is a formula for destroying the US economy. Her proposed various individual tax increases, capital gains tax, unrealized gains tax, will force many people to stop investing. Most middle-class Americans are investing with their pensions, through retirement savings plans. Like Biden she promised no new income tax increases on individuals making under $400,000. But this is part of a bait-and-switch scheme. Corporations pass on the tax they are charged to customers. They act like the revenue service in gathering tax money. Yes, one’s income tax is not going up, but everything you buy is and the increase goes to the government as “corporate” tax. The increased taxes on corporations will also dampen investment of all kinds. The US stands to lose trillions in investment, as foreign investors pull their money out of the US market. The supposed revenue from increased taxes of all kinds will not be realized. Vice-President Harris is already saying she will borrow more money to help fund her programs and with the unrealized revenue, that means trillions in new debt.The second example is how California has been managed. The higher minimum wage forced many fast-food restaurants to close their doors. Small businesses packed up and moved out of state. The higher tax rates on almost everything have also forced business, even large business, to move out of state. The nightmare of regulations makes doing anything a costly and time-consuming endeavour. Stagnant wages and the high cost of living are further reasons for California’s failings leading to significant revenue loss. With the Wagner-Steagall Act (1937) the US federal government in cooperation with local governments funded housing construction. After the war, places like Chicago used this money to increase high density housing. One location is exemplary. An area just north of downtown Chicago came to be called Caprini-Green. Saint Caprini was a Catholic nun working in one of Chicago’s Little Italys, the location that was destroyed to make the new housing project, and partially named after her. By the 1970s Caprini-Green had become a collection of high-rise ghettos infamous for murders, assaults and drugs. The US federal government “encourages” building high density (urbanized) new housing. There is no reason to think that the current US federal government is any smarter than the government under FDR. The Canadian angle here? High density housing uses more concrete and steel and so we cannot expect a significant increase in Canadian wood products being sold, too bad British Columbia. Vice President Harris cast the deciding vote for the Income Reduction Act of 2022, which was in part a repackaged Green New Deal. The US’s Green New Deal is similar to the draconian environmental regulations enacted under PM Trudeau. Another Canadian angle... Sorry Alberta, whatever happens south of the border under a Pres. Harris will exclude you and some of Saskatchewan, Newfoundland and Labrador.There is already talk about price controls on groceries. Rental housing cannot be far behind. The US tried price controls under Pres. Carter and Pres. Nixon. Both times it led to shortages in supplies and services, decreased quality, inefficient allocations, a larger black market and greater political corruption.VP Harris, like so many politicians, is poorly educated in practical economic principles. Her solution for every problem is increased statism. More government means more money going into non-productive uses. Her proposals will not bring about the Democratic utopia but will increase suffering for most Americans just like in Biden’s economy and probably worse.The trouble is, the US is Canada’s number one customer. If their economy falters, Canada will not prosper under a President Harris. We have every reason to be concerned. And Canadian media should dig a little deeper before pouring on the love for Kamala Harris.Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.
