Election results’ impact on business

Conservative Party of Canada - Parti Conservateur du Canada Pictures, Images and Photos
Six weeks ago when this election cycle began, almost everyone (including me) thought that the results will be the same as they have been for some years. Another Conservative minority, followed by the Liberals as the official opposition and then the NDP, with the Bloc Quebecois controlling Quebec. The difference most people expected was that the Green Party would earn 1 seat. Well, the Green Party did win that seat. However, everything else changed as well.

The Conservatives won a majority. The NDP became the official opposition for the first time in history and the Liberals had the worst showing ever in their history. Also, the Bloc Quebecois did so poorly that they even lost their official party status so they are not even an after thought in Canadian politics right now.

What this means for business in Canada is mostly positive. The Conservative Party is the best for businesses. They are the only party looking to lower corporate taxes and they have shown themselves to be a responsible steward of the government and economy. Now that they have a majority, this will inject some more certainty in to market which is always important for growth in an economy. The extra stability that comes with a majority government will enable businesses to feel more confident in longer term strategies including large capital expenses and hiring. We now know what to expect for the next few years and we don’t have to worry about another election in 2012 or 2013.

By having the NDP as the official opposition, it surely will scare businesses because many of the NDP’s view points are too far to the left. However, this fear will be limited because they do not have as much muscle to flex given the Conservatives majority government. Still, the longer term will see some uncertainty if the NDP is able to maintain their second place status. For businesses, the Liberal Party is a more comforting thought since they are closer to the centre than the NDP is, which is good not only for business for general governance as well. I expect them to make a come back in the next election and this will be good for Canada.

After this election, Canada is a more stable place to do business. This is good for everyone because it can help strengthen the economy, create jobs and keep taxes lower. It remains to be seen how this new political landscape will affect Quebec which could pose a threat to the newly found market certainty but, overall Canada is likely better off today than it was yesterday.