A Keynesian coalition

Editorial

Keynesianism is back with a vengeance. John Maynard Keynes, whose interventionist economic theory held that the best way to avert economic recession is for governments to inject huge sums of cash into the economy, died in 1947. In North America, his ideas lived on a few more years, until the conservative ascendancy that began with Ronald Reagan and he rejected Keynesianism's interventionist premise (even though the "conservative" governments of Reagan and two Bushes continued to balloon the national debt).

As suddenly as the current economic crisis emerged, the undead hand of Keynes' economic strategy thrust itself from the grave. The $700 billion plan unveiled by the current Bush administration to counter the economic slide is acknowledged as only a first step in attempting to stanch the crisis.

The economic situation in Canada is not yet as severe as that in the United States, but the three opposition parties, driven by a combination of economic ideology and old-fashioned ambition, are accusing the Conservative government of proposing an inadequate economic stimulus package, and are seeking to unseat Prime Minister Stephen Harper.

This possibility of a Liberal-NDP coalition formally backed by the separatist Bloc Quebecois is alarming. Though the Bloc would not be included in cabinet, it would be the second-largest party in the coalition, with commensurate influence over national policy. This is a stomach-churning possibility to federalists.

Arguably as horrendous is the idea of New Democrats making government policy. Jewish voters who thought the Liberals were inadequately supportive of Israel's legitimate security interests will be apoplectic if they see on the government side of the Commons New Democrats who refer to Jewish national self-determination as "Al Naqba," "The Catastrophe," and who have actively perpetrated hateful, ideological and unconscionable vilification of Israel. There are, we hasten to add, about a half-dozen NDP members of Parliament who publicly do not agree with their extremist colleagues, so it will be illuminating to see which NDP members are among the six selected for cabinet should this coalition form government.

The era of small government is over, to paraphrase Bill Clinton. Sadly, Keynesianism seems to be back. If this coalition forms government, it will probably launch a spending spree, which may jump-start the economy but, more likely, will simply serve to extend the economic crisis.

As well, the coalition will have a foreign policy, and how the NDP, the Bloc Quebecois and a few rogue Liberals influence that foreign policy is something Jewish Canadians and reasonable people will also be watching warily.

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