NDP proposes reviving war-era Victory Bonds to raise money for trade fight with U.S.

NDP Leader Jagmeet Singh has unveiled a bold plan to raise money for the Canadian economy amidst the ongoing trade war with the United States. The proposal involves the issuance of “Victory Bonds,” a concept borrowed from Canada’s history during the world wars.

Under this plan, the federal government would offer five- and 10-year bonds that Canadians can purchase through a payroll deduction system. The NDP has assured that the funds raised through this initiative will be solely dedicated to building public infrastructure such as roads, rail, housing, waterworks, and ports that will be owned by Canadians for generations to come.

During both world wars, Victory Bonds were sold to individuals, companies, and organizations to finance the war efforts. The NDP’s version of Victory Bonds would be targeted towards individuals, with the bonds serving as a loan to the government that can be cashed in after a fixed term.

The Ontario Archives reports that the Victory Bond program during the Second World War raised an impressive $12 billion over five years, a significant amount compared to the federal government’s total tax revenue at the time. The NDP aims to replicate this success by rallying Canadians to support the country’s stance against U.S. tariffs.

NDP Leader Jagmeet Singh expressed confidence in the program’s potential, citing Canadians’ resilience in the face of trade challenges. He praised their efforts in boycotting U.S. goods and canceling trips south of the border, emphasizing the importance of collective action.

The Victory Bonds program proposed by the NDP would offer an interest rate 0.25% higher than the average five-year bank-issued Guaranteed Investment Certificate (GIC). Bonds issued today would accrue compounding interest of 3.5% and dividends would be tax-free if held to maturity.

While the program is expected to raise $1 billion, the party acknowledges that it may incur higher administrative costs, estimated at up to $80 million. Despite this, the NDP remains committed to leveraging Victory Bonds to bolster the Canadian economy and navigate the challenges posed by the trade war.

With this innovative approach to fundraising, the NDP aims to empower Canadians to contribute to the country’s economic resilience and stability. As the political landscape evolves, Victory Bonds may prove to be a crucial tool in securing Canada’s economic future.