Should we be worried about populism?

Political debate is heating up south of the border and across the pond. Measured, moderate views have given way to inflated or even aggressive and hostile comments. At first glance, it’s a worrying trend. But it’s important to ask: these would-be populists certainly bark—but do they bite?

Let’s take a moment to remember what populism is—and what it isn’t. It’s often just a tool that politicians use to seize or maintain power. Just because they play to popular opinion doesn’t mean they intend to overthrow established institutions.

So, while it’s always a good idea to be aware of what’s going on, the rhetoric being tossed around these days is no real cause for concern.

Government spending is going well, companies are investing and growing, and employment rates are stable. In short, the economy is healthy and could continue on this track into 2021 or 2022. Populist rhetoric is often nothing but posturing, and this means that the fears it attempts to instill often lack a solid foundation.

For example, disaster seemed poised to strike in Canada last year during the NAFTA negotiations. With much bluster, the U.S. president blasted the treaty as the worst trade deal ever made. Many feared the worst. But in the end, an astonishingly similar trade deal replaced the first one—a deal that the very same president might call the best one ever made.

Actions speak louder than words. To keep a cool head when populist rhetoric heats up, don’t try to keep up with the politics… try policy instead!

Author: Martin-Guy Bernier, Investment Advisor

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