When the NDP won government in Ontario exactly 20 years ago, it constituted the greatest advance for social democracy in North American history.
It’s true that British Columbia, Saskatchewan and Manitoba had all elected NDP governments and that progressives had won small victories in various parts of the United States. But none of them (I hope this doesn’t hurt their feelings) mattered in the same way Ontario then did. It was the economic heartland of Canada, the home of much of Canada's industry and finance. What happened in Ontario impacted all Canadians. Now it was under the control of Bob Rae and the New Democrats.
Reflecting this reality, within months Mr. Rae's government faced an unrelenting, brutal four-year onslaught that was unprecedented in Canadian history.
The attacks came from all sides. It is no exaggeration to say hysterical fear-mongering and sabotage was the order of the day. Launched within the very first year of the new government, the attackers included every manner of business big and small, both Canadian and American-owned, almost all private media, the police (especially in Toronto), landlords and lobbying/government relations firms. Their goal was clear, and they had the money and power to achieve it.
They were determined to undermine the government every step of the way, to frustrate the implementation of its plans and to assure its ultimate defeat. In all three goals they were successful. The considerable achievements of the government – often forgotten or dismissed –were wrought in the face of a deep recession and ferocious obstruction.
The tactics were not necessarily subtle. Though the Soviet Union was ignominiously imploding, right-wing columnists such as Diane Francis and Barbara Amiel actually resorted to old-fashioned red baiting, smearing the government as “red” or “communist.” And after the new finance minister's very first meeting with the banking community , a bank vice-president told him, in the presence of an aide: “Nice speech, Mr. Minister, but we're going to kill you.” And they did.
Conrad Black was a leading executioner. Lord Black swore loudly that on principle he'd never invest in Ontario under an NDP government. Other corporate interests threatened a virtual strike of capital unless the government relented on its intentions to introduce higher business taxes and to strengthen union rights, environmental regulations and equity programs.
Mr. Rae and treasurer Floyd Laughren made themselves easily accessible to business representatives, many of whom ran Canadian branch plants of huge American multinationals, only to be threatened with capital blackmail. The premier was warned that their U.S. head offices weren't about to invest further in Ontario unless the government abandoned most of the programs it had run on.
Bond traders declared that slashing government programs to reduce the deficit was a prerequisite to Ontario borrowing at competitive rates, even though Ontario’s deficit was equivalent to that of Conservative-run Alberta. Suddenly the entire media was fixated on the government’s threatened credit ratings, never mind that Ontario had the only Standard & Poor’s AAA rating in the country. The Social Credit government in British Columbia, the Conservatives in Alberta and Robert Bourassa’s Liberals in Quebec all had lower credit ratings. Yet only in Ontario was the government threatened.
NDP government decision-makers, while innocent about so much, at least understood that the corporate world was not given to bluffing. Time after time they responded to the endless corporate blackmail by compromising on policies and commitments. In this way, they alienated many of their own followers but without ever appeasing business interests. They never could.
Some business protests bordered on the disloyal. Hysterical landlords took out an ad in The Wall Street Journal warning Americans not to invest in “leftist Ontario.” Others demanded the complete repudiation by the government of its most cherished legislation, as when several coalitions of powerful business interests, managed by government relations firms such as Hill & Knowlton, demanded the NDP scrap its entire plan to amend the Labour Relations Act. This was the kind of class warfare Lenin might have admired, especially since the government had already withdrawn many of its intended changes in order to meet business criticism.
