Carney and Trump's Government-Driven Economic Plans Under Fire

Mark Carney and Donald Trump may seem like an unlikely duo, given their vastly different styles and temperaments. However, as noted by Matthew D. Mitchell, a Senior Fellow in the Centre for Human Freedom at the Fraser Institute, they share a common approach to economic policy-making.

Both men have cast themselves as the chief pickers of winners and losers, rejecting the rules-based system that made the US and Canadian economies the envy of the world. They claim to be charting new and bold courses, but in reality, they are attempting to revive an antiquated approach to economic policy-making, government-directed industrial strategy.

This approach was heavily criticized by Adam Smith 250 years ago. In his book, Smith argued that policymakers who use state power to direct economic systems and bestow privileges on certain industries are misguided. Instead, he advocated for 'natural liberty', allowing people to pursue their own interests in their own way, with minimal government intervention.

Despite the overwhelming evidence supporting Smith's claims, neither Carney nor Trump seem persuaded. Trump's tariffs have disrupted the world economy and curtailed the economic freedom of his own citizens. He has also granted thousands of exemptions and special carve-outs to companies and industries with the right lobbyists and connections.