Tuesday, August 30, 2022

The Centre-Right is there for the taking

Federal politics is in an interesting position in Canada right now. For the first time in all of the time I have been observing Canadian politics (almost 40 years) the centre-right is unoccupied by any of the Federal political parties.

The NDP would never move that far right. The current Liberal government has been the most progressive government since the government of Pierre Trudeau, meaning it has firmly planted itself in the centre-left, with some incursions into the centre proper. The Conservative Party of Canada, the Party you would expect to occupy the centre-right, has abandoned it and has moved far to the right, moving into populist, Trump, MAGA territory.

The Conservatives have a chance to move back to the centre as they are in the middle of a campaign to elect a new leader but the presumptive front-runner does not seem interested in that, one of the candidates that seemed to realize the opportunity was summarily disqualified from the contest and the other who seemed to realize the opportunity is a political has-been who probably has no chance of winning. There are still a number of weeks until the CPC announces the winner of that contest but it does not look like they will be electing a "moderate" conservative as their leader.

So, what are the Liberals to do?

I know that their instincts are to be progressive, to stay the current course. They have broken the old trick of campaigning from the left but governing from the right since 2015. However, they are a seven year old government, and counting, and they will be seeking a fourth mandate during the next election. The next election will be toughest one of all and they need to find a way to grow their support if they hope to win that fourth mandate. The Conservatives have given them an opening to do just that. 

Make no mistake there are many centre-right voters who would not vote Liberal no matter what. However, there are those who have voted Liberal in the past and would vote Liberal again if the party could find a way to appeal to them.

Most centre-right voters care about the economy and government spending and they are turned off by any kind of focus on social issues. With the economy seeming to be heading towards post-pandemic "normalcy" the government has the opportunity to address the economic and fiscal issues. Inflation appears to have peaked without the Bank of Canada raising interest rates too much. We will have to see but 2022 could just be the year of transition from the pandemic economy to a "normal" economy in 2023 and beyond. As well, as a result of this the government will be able to wind down the remaining pandemic relief programs, leading to less government spending and lower deficits. There are already signs that is happening with the government reporting a $10 billion surplus in the first quarter of this fiscal year. That will disappear in subsequent quarters but the surplus is something that can be used as a starting point for the economic update that will be delivered this fall and that can be expanded upon in the spring budget.

As for the social issues. The CPC is doing a good job of turning off centre-right voters by making them front and centre in their leadership election campaign.

Of course such an approach may alienate the NDP, which currently has a deal with the Liberals to support them in the minority Parliament but there is a way to deal with that, which I will write about in my next post.

For now, there are enough reasonable centre-right voters in this country, who are appalled by the direction that the CPC are heading and who would be looking for a political home during the next election. If the Liberals could capture their votes it could mean a rather convincing election victory for them.

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