Despite disappointment and turmoil surrounding the Fall Economic Statement and Chrystia Freeland’s shocking departure from Justin Trudeau’s cabinet, Canada remains a country of immense promise. I’ve spent more than a few words in The Hub highlighting the challenges we face—creeping neofeudalism, a stagnant economy, the suffocating complexity of our regulatory regimes, the subtle but relentless erosion of trust in our public institutions, and the glaring distortions in our housing and health-care systems. But looking towards 2025, I remain optimistic. If we can channel our inherent advantages—our openness, human capital, abundant resources, and a mostly pragmatic culture—and lead in a changing world.
What follows are some big (and controversial) topics—ambitious ideas that cut against some sacred Canadian cows. While some may seem radical, I believe putting them on the table could contribute to necessary debates and hopefully progress.
1. CANZUK: A federation beyond trade
As Donald Trump jokes about Canada becoming the 51st American state and threatens steep tariffs, we must wake up to the reality that our sovereignty is not guaranteed. Canada, the U.K., Australia, and New Zealand share values, language, law, and history, yet each remains a mere middle power orbiting larger great powers—the U.S., Europe, China, and a rising India. None dominates a potential union, but together, these four countries represent nearly 140 million people and a combined GDP of over $7 trillion—catapulting them into the top tier of global economies.
A “light federation”—CANZUK—would create a common market with free movement, a robust independent military-industrial complex at 2.5 percent of GDP, and unified foreign and trade policies. Unlike the EU, it would preserve separate currencies, domestic fiscal and monetary autonomy, and avoid redistributive funding, instead streamlining regulation rather than adding bureaucracy. This powerful union would justify the U.K.’s UN Security Council seat, give all members the benefit of nuclear deterrence in a multipolar world, and encourage a needed refresh of regulatory systems in all four economies.
With open markets and dedicated funding for research, space programs, and development, CANZUK could transform four middle powers into a prosperous, sovereign, globe-spanning superpower.
2. A “head start” wealth fund for Canada’s kids
Imagine giving every Canadian child a personal nest egg at birth. With about 370,000 births per year, the federal government could invest $20,500 per child over 18 years—$10,000 at birth, then $1,000 annually from ages 2 to 6, and $500 from 7 to 17—for a total annual cost of around $7 billion.
For context, raising the Old Age Security (OAS) benefit age from 65 to 67, as once proposed by Prime Minister Stephen Harper, would save up to $12 billion annually by 2030. Meanwhile, OAS spending is set to climb from $55 billion in 2024 to over $90 billion by 2030. This youth-focused fund would cost far less, and unlike OAS—which pays out late in life—this invests at the start of adulthood, giving every young Canadian a head start at building wealth.
Historic returns in the Canadian Pension Plan indicate this fund could yield $50,000 to $60,000 for every child born in Canada when they turn 18. That’s real capital for tuition, launching a business, or securing a down payment. At a time when housing and education costs threaten to lock the next generation out of the Canadian dream, it’s a powerful equalizer—an honest commitment to the success of the next generation.
3. Electricity abundance: A wealth engine
Electricity will be the next generation’s gold, powering nearly everything. Canada’s cheap, clean grids give us a head start, but we’re still moving too slowly. We should aim to double or triple capacity as soon as possible—nuclear, hydro, renewables, and storage. By scaling up rapidly and expanding consistently, we can drive costs down to the lowest in the developed world, securing a clear competitive edge for the electricity-intensive industries of tomorrow (eventually all of them!).
The Canadian flag flies near the Peace tower on Parliament Hill in Ottawa, Wednesday June 17, 2020. Adrian Wyld/The Canadian Press.
Subsidizing electricity abundance works like a carbon tax, but instead of making fossil fuels more expensive, it makes clean solutions cheaper. No need for clumsy, shady, and inefficient subsidies when cheap electricity becomes its own incentive. Yes, nuclear power can be costly upfront, but other countries build it faster and cheaper, and we can too. The same goes for hydro, wind, solar, and storage. We must rid ourselves of the unpopular Malthusian ethos of demanding people use less energy in response to climate change. We should encourage citizens to consume more electricity, and, in doing so, sustainably raise our living standards.
4. End NIMBYism: Restore property rights
Canada’s housing crisis is fuelled by restrictive zoning, absurd permitting, heavy taxes, and a NIMBY elite hoarding land privilege. It’s time to stop taxing new housing into oblivion, streamline codes across towns and cities, and restore property rights so both builders and homeowners can profitably add supply—whether it’s spacious suburban homes or roomy urban flats. Loosen rules on urban, suburban, and greenfield land, stop litigating your neighbours, let safety and infrastructure guide us, and trust Canadians to choose where and how they want to live.
5. We can have a better universal health-care system that still respects choice
Universal health care is precious, but ours is expensive, underperforming, and often inaccessible. Nearly all other universal systems—Spain, Japan, Australia, Switzerland—make room for private delivery while preserving high-quality universal access, with almost all seeing better outcomes and faster care. We fear “two-tier,” but in practice, Canada already over-rations access, trains too few doctors, and excludes coverage for crucial services like optometry and drugs from public funding. Our system is already the “second-tier” among developed countries. It’s time to ditch the false black-and-white choice between social-only and “American” private medicine.
6. Bust oligopolies and break interprovincial trade barriers
Canada is riddled with cozy cartels—from telecom and airlines to dairy and provincial liquor boards—and fragmented by interprovincial barriers that inflate consumer prices by an estimated 7 percent. This number should be as close to zero as possible. It’s absurd that some provinces trade more easily with foreign countries than with each other. Tear down these internal walls and let Ontario breweries sell in Alberta, B.C. businesses serve Quebec, and so on. Freeing trade at home encourages investment, helps small businesses scale, and cuts prices for consumers.
Once we’ve fixed the domestic mess, open protected sectors to competitors from trusted foreign allies. That doesn’t mean ignoring safety or security—it means breaking up government-awarded fiefdoms for the world’s laziest billionaire families.
7. Digital statecraft: Into the 21st century
While private firms offer seamless digital experiences, Canadian governments still rely on creaking legacy systems. We need secure, integrated platforms that let citizens renew passports, file taxes, and access services in minutes. Open data can spark private innovation and solve problems government alone cannot.
To achieve this, stop overpaying consultants and grow in-house tech talent, adopt open standards, and measure success by outcomes, not contracts. Estonia and Singapore show it’s possible. With the right skills and vision, Canada can become a true digital government leader.
8. New independent public corporations with real “state capacity”
Our infrastructure costs are far more than those in countries like Spain or Japan. The culprit? Hollowed-out state capacity and a “soft corruption” of endless outsourcing and bloated consulting. Let’s rebuild in-house expertise through independent public corporations that manage projects directly, enforce cost controls, and adopt standards across similar projects to drive scale.
To attract top talent, let’s pay market rates and ditch outdated “sunshine lists” that shame competent staff. With skilled staff, streamlined oversight, and greater institutional independence, we’ll cut costs, restore trust, and catch up to proven world-class nation-builders. With what we task our governments, we must demand excellence in their delivery.
9. Competition is a virtue, even where states are highly involved
Even where the government helps ensure universal access—like higher education or health care—competition can improve outcomes. For example, Ontario’s centrally ruled tuition and subsidy freezes have dulled incentives for schools to improve (and drove many to exploit international students). Why not let funding flow directly to students, say, 70 percent of their tuition, who then choose where to spend it? Let institutions publish tuition rates freely and allow students to be the best judge of value.
The state still plays a key role—funding individuals, not bureaucracies. Essentially, public institutions such as universities should operate with far greater independence. Apply this logic broadly, and you create a self-reinforcing cycle: better services, happier citizens, simpler rules, and stronger institutions, all without abandoning those who need support.
10. The great simplification: Real federalism, real accountability
Our federation is a tangled mess of conditional transfers, tax gimmicks, and blurred lines of responsibility. Let’s fix that. Devolve most transfers as tax points directly to the provinces so they fund their own priorities—health care, education, infrastructure—without having to beg Ottawa. In exchange, grant the federal government clear authority to ensure a true internal common market, guaranteeing free trade between provinces.
Embrace tax reform and do away with complex credits and carve-outs, making taxes lower by default and simple enough that they file automatically for most Canadians and small businesses. You can’t hold accountable what you don’t understand. Ottawa can refocus on its core responsibilities, like defence and external trade, while provinces gain both the tools and the accountability to serve their citizens better.
Eric Lombardi stands at the forefront of urban development and advocacy as the founder and president of More Neighbours Toronto, a volunteer organization committed to ending the housing crisis. Professionally, he specializes in strategy management consulting in the finance and technology sectors.
