Searching for Trudeaunomics: After three years at finance, Chrystia Freeland’s second act is still unclear
Ahead of Prime Minister Justin Trudeau’s cabinet shuffle last month, there was — for a brief Ottawa minute — speculation the government shakeup would include the departure of Deputy Prime Minister Chrystia Freeland, who also serves as the country’s finance minister.
Trudeau was ultimately spared the prospect of losing his top lieutenant at a time when the governing Liberals are badly trailing in the polls.
Yet, as Canada’s finance minister enters her fourth year at the helm of the nation’s economy (Aug. 18 marked her third anniversary), Freeland’s continued tenure at the post raises new questions: What’s the next order of business? Where’s the agenda? What’s the purpose of staying?
What, in other words, is her second act?
The big legacy decisions — including two new entitlement programs — are in her rearview mirror. Looking ahead, there are few policy levers left to pull.
The government will be handcuffed by an already bloated spending profile, higher debt and other constraints that come with slowing growth and a higher interest rate environment. This means learning to live with less — a message that Freeland will surely take to a cabinet retreat in Charlottetown starting Aug. 21.
There are things that still need to be done, to be sure, such as executing on already budgeted policy decisions.
Trudeau is also facing pressure to do more on housing affordability, including measures to bolster supply and stem the surge of temporary foreign residents that have come into the country. The Liberals will need to offer something to the NDP in next year’s budget, in order to keep their support in Parliament. More immediately, the government has to execute on regulations and legislation needed to put its climate transition plan into
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