Today marks the final day for federal Liberal leadership contenders to throw their red hats into the ring to become the next prime minister of Canada. I was asked by my editor to conjure up the speech I’d want the next Liberal leader to give, as the party and the country face their biggest challenge in a generation. Although I’ve had ties to the party, I’m nonpartisan—often a harsh critic. Here’s what should be said.
We stand at a pivotal moment in our country’s history—confronting external threats and reckoning with the consequences of our own party’s policy failures. Most alarming is Donald Trump’s vow to impose a 25 percent tariff on Canadian goods, a blow that could knock our economy off its feet. It’s jarring to see a former ally now threaten our sovereignty. Yes, we should condemn Trump’s behaviour for what it is—an American disgrace that signals a broader collapse in global freedom and the rules-based international order—not to mention a fight from which only China and Russia stand to gain. But we must also look inwardly and acknowledge how our own failures have left us dangerously exposed.
Over nearly a decade under Prime Minister Justin Trudeau, we leaned hard on short-term spending and grievance politics, instead of implementing real reforms for broad-based prosperity. Yes, we inherited troubles—sluggish productivity, soaring housing costs, ballooning debt—but we also let them fester.
Our per-capita GDP growth sits near the bottom of the OECD, and household debt has climbed to 175 percent of disposable income, among the highest worldwide. Meanwhile, we’ve dropped from fifth in the World Happiness Report in 2015 to 13th in 2023, with under-30 Canadians bearing the worst of it at 58th. We’ve accomplished a lot of good—expanding child benefits, rolling out dental coverage for families without private insurance, and boosting social support—but if we refuse to confront our shortcomings, why should Canadians trust our leadership? Our faltering social contract is exactly what a hostile White House aims to exploit.
Rediscovering Canada’s liberal roots
Canada’s foundation—and that of the modern West—isn’t found in religion or ethnicity; it’s rooted in liberalism. Liberalism empowers individuals, insists on accountable, secular governance, and unites our diverse communities around liberty. It rewards merit through open markets, protects people via property rights, and upholds fairness under the rule of law. When these pillars are strong, a society becomes free, confident, and prosperous. This is more than just our national heritage; it’s the namesake of our Liberal Party. It’s a legacy we should proudly uphold.
But the party has turned its back on these fundamentals. Witness our failure to build the infrastructure and institutions that foster resilience. We postponed or scrapped pipelines that could give our natural resources global market access, leaving us landlocked. We ignored refining and production—industries that create high-paying jobs and enrich nations.
Meanwhile, large-scale initiatives in resource extraction languish in endless approval processes. There’s no good reason Canada shouldn’t be energy independent or a global leader in resource exports. We’ve implemented too much bureaucratic red tape and spent too much time consulting and dithering instead of acting and delivering.
We’ve also chronically underfunded our military, missing the 2 percent NATO target for a generation. This shortfall deprives our armed forces of resources to defend our country and honour our international commitments. Global threats are rising, yet we seem reluctant to build the capacity we plainly need.
A Liberal supporter holds a dog as Liberal Leader Justin Trudeau makes a campaign stop in Richmond Hill, Ont., Sept. 18, 2021. Sean Kilpatrick/The Canadian Press.
Our housing markets remain trapped by outdated building codes, high taxes, and municipal red tape—fueling a crisis that’s pushed rents and prices beyond reach for young families. We need bold agreements with Ontario and British Columbia, the most troublesome provinces, to break these barriers and empower Canadians to build the homes families need to prosper.
Our immigration system, too, fell prey to short-term thinking. Prodded by low-wage industry lobbyists, we admitted nearly three million temporary residents since the pandemic, overwhelming housing and infrastructure while discouraging employers from investing in wages or productivity. Rather than creating new Canadians who fully adopt our liberal-democratic values, we allowed immigration to paper over economic failures. Worse, integration became an afterthought, risking the transfer of old-world rivalries that strain our social fabric and undermine pluralism.
Meanwhile, the government’s approach to regulating speech turned illiberal. The Online News Act (Bill C-18) forced Meta to pull Canadian media from its platforms, reducing public access to information, while the Online Harms Act (Bill C-63) duplicates existing laws and even threatens life imprisonment for speech already criminalized. Instead of championing free expression, Ottawa is empowering secret commissions to divide and censor Canadians behind closed doors.
The toll on younger Canadians
Young people have suffered most from these failures. They face a “milestone recession,” where homeownership, secure careers, and starting a family drift out of reach. In places like Toronto, inflation-adjusted housing costs have more than doubled since the early 2000s, while incomes for those under 35 have stagnated. When hard work no longer guarantees a decent life, national morale suffers—making us more vulnerable to threats like Trump’s tariff aggression and offers to become the 51st state. No surprise that young people are the most open to the idea of abandoning Canada for an American passport.
At the same time, oligopolies dominate industries like banking, telecom, airlines, and groceries, protected by archaic regulations and ownership rules that stifle competition. This isn’t random: entrenched interests lobby governments to preserve their regulatory advantages. Because these privileged players face scant real competition, they see no need to invest or innovate—leaving workers, especially younger Canadians, without the career opportunities that could have existed.
The ArriveCAN fiasco exposed our gamed public procurement systems, with nearly $100 million funneled through subcontracts to a firm with just two employees. The squandered funds in our procurement processes are a tax on the country. Reform is imperative to restore public trust and prevent these scandals from happening again.
Interprovincial barriers have only compounded our dysfunction. According to the National Bank of Canada, these self-imposed obstacles act like a nearly 20 percent tariff, tacking an extra 7 percent onto goods nationwide. It’s absurd to sabotage our internal trade—especially when we’re already facing the threat of real tariffs from the U.S. The federal government must take the lead in creating a seamless domestic market. By streamlining regulations and standardizing credentials across provinces, we can unify our economy, drive down costs, and spark the innovation we desperately need.
A Liberal supporter holds up a sign during a rally in Montreal, Quebec on Thursday Oct. 17, 2019. Sean Kilpatrick/The Canadian Press.
Confronting Trump’s threat, protecting our future
Facing Trump’s hostility with moral indignation might feel good, but it won’t solve anything. Yes, we may need retaliatory tariffs to show the White House that stupidity has a price, but those alone won’t mend our own self-inflicted problems.
Above all, we must counter this wave of global illiberalism by returning to the timeless principles that built our nation in the first place. Abandon identity politics, tear down redundant regulations, eliminate interprovincial trade barriers, and bring back the investment we’ve driven away. If a U.S.-provoked recession looms, our priority is to lower costs so key sectors—from housing to energy—can return to nation-building.
We must also remember that competition is democracy’s best accountability tool. No more propping up telecom, grocery, or banking “winners,” and no more opaque deals that cloak inefficiency behind bureaucracy. Every time we pick corporatism over open competition, we betray the liberal values we claim to defend.
Our challenge as Liberals is to remember that liberalism isn’t just a policy—it’s faith in free individuals, accountable institutions, and continual progress. By unleashing people’s potential and trimming back gatekeepers, we can raise living standards for everyone.
If Trump’s aggression drives us to revisit these ideals, let’s seize this moment to build the open, prosperous Canada we’ve always envisioned. We don’t have to choose between fear and complacency. We can choose boldness—reclaiming liberalism’s core to forge a freer, more unified future, proving yet again that liberty, opportunity, and fairness are Canada’s best defences against any storm.
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.
