Governments across Europe and North America are facing a stark choice: maintain expansive welfare states or meet rising NATO defence commitments. With aging populations, mounting debt, and sluggish growth, leaders in Germany, Spain, Canada, and France are beginning to admit the welfare state may no longer be affordable. The question is whether voters will agree.
When governments take ownership stakes in private companies, business decisions can become politicized, efficiency may decline, and taxpayer support often increases. Global experience – from the U.S. to Europe and Canada – show that mixed enterprises rarely outperform the private sector. The challenge ahead is ensuring policies encourage innovation and investment without blurring the lines between government and business.
New York mayoral front-runner Zohran Mamdani is making headlines with his affordability agenda, promising expanded free public services, social housing, and public transit subsidies funded by higher taxes. While the proposals aim to ease the cost of living for New Yorkers, economists and critics question their long-term effects on the city’s economy and housing market.
Europe’s economy is high-taxed, over-regulated, and underperforming – not a model Canada should copy. While trade and cooperation with the EU bring benefits, adopting Europe’s economic policies could hurt Canada’s competitiveness and strain relations with the U.S. Instead of imitating Europe, Canada should focus on building a uniquely competitive economy that thrives globally.
