Who is This Guy, Anyway?
The Federal Liberals have been courting Mark Carney for years, but most Canadians still don’t know much about him. So why are the Liberals obsessed with crowning him as their next leader, and what might we expect if (or likely when) he becomes prime minister?
Carney served as Governor of the Bank of Canada during the 2008 recession, where he successfully steered Canada away from the major economic decline that hit the United States. His performance was impressive enough that the British hired him to run the Bank of England, where he unusually stepped into politics by advising against Brexit. He served until March 2020—conveniently departing just before COVID wreaked havoc on central banks worldwide.
Since then, he’s played a prolonged “will I, won’t I” game with Justin Trudeau about joining his cabinet. Despite his political flirtations, Carney has never held elected office—he’s firmly a banker.
Why Does the Liberal Party Want a Banker?
Carney isn’t just any banker; he’s an Anglo-Western-Canadian banker, making him an odd choice for a party that typically needs Quebec to win elections. Historically, Liberal success requires either a French Liberal leader or someone like Jack Layton (who was neither available nor a Liberal).
Furthermore, as an intellectual, Carney risks suffering from the “Ignatieff effect”—named after Michael Ignatieff, whose lack of relatability and charisma led to the Liberal Party’s devastating defeat in 2011.
So why take these risks? First, Carney is the perfect counter to Conservative leader Pierre Poilievre’s economic attacks. Unlike Trudeau, Carney has strong economic credentials—even Conservative PM Stephen Harper kept him as Bank of Canada Governor. Second, the Liberals have always favored intellectual elites as leaders. Finally, Carney’s distance from the Trudeau administration appeals to voters seeking change.
Is He the Right Leader for These Times?
Canada faces multiple challenges: high cost of living, housing shortages, climate change, economic underperformance, low government trust, and an unpredictable southern neighbor. Liberal candidate John Goheen said it best: “Extraordinary times require extraordinary leaders.”
“Extraordinary” has dual meanings—both “great” and “unusual.” Canada clearly needs change, and change is inherently unusual and exciting. In short, Canada needs an exciting weirdo to fix our unusual problems.
Can a banker be exciting? Typically not—banking rewards predictability, not excitement. Yet Carney is unusual for a banker. In his 2021 book “Value(s): Building a Better World for All,” he argues that leadership must align with organizational purpose. As a bank governor, stability was his goal, but as prime minister, different rules would apply. He advocates for values-based leadership to address current problems while building public trust.
Can He Save the Liberals?
The Liberals are struggling badly in polls, with some projections showing a potential wipeout. Can Carney rescue them?
He faces significant challenges: taking over an incumbent party during a time when voters globally are rejecting incumbents, and trying to argue for change while representing the status quo. However, since Trudeau announced his departure, Liberal numbers have been improving. A recent high-quality Leger poll shows the Carney-led Liberals tied with the Conservatives.
This suggests Carney might revitalize the party enough to prevent a Conservative majority, perhaps even forming another Liberal government.
What Would Carney Be Like as PM?
Carney is a thoughtful leader who considers both material and social outcomes from multiple perspectives. He believes a leader should be a steward working toward the common good, and that input and transparency are essential to determine what that common good is.
In his book, he acknowledges that elites and ordinary citizens see things differently. To bridge this gap, he prioritizes government transparency and accessibility to gather diverse perspectives and build trust. This approach aims to counter right-wing populism while addressing issues like climate change.
Carney’s “Values-Based Government” blends realism and optimism. He advocates for effective communication and incorporating multiple viewpoints, while recognizing that a good solution now may be better than a perfect one later. He proposes frequent public forums to explain policy decisions, similar to government communications during early COVID lockdowns.
This would mark a significant improvement over the Trudeau government’s poor communication. Despite investing in admirable projects like VIA rail modernization, the current government has failed to effectively publicize these accomplishments, creating the perception of inaction.
Policy Priorities
Carney says he’ll prioritize the economy first, with promises to:
Increase competition in the Canadian private sector
Prioritize economic outcomes over spending levels
Remove regulatory barriers to development
Eliminate provincial trade barriers
Reverse capital gains tax increases
Incentivize housing construction for young Canadians
Promote green consumption
Cut middle-class taxes
Reinforce supply chains
Invest massively in railways, ports, roads, and bridges
Increase defense spending to meet NATO’s 2% target
Ironically, for someone touted as an “extraordinary leader,” these policies represent standard centrist neo-liberalism—not the substantial change many Canadians seek. But perhaps that’s to be expected from a banker, even an unusual one.
