a_majoor said:
I suspect several balls are in play here:
1. Demoralizing the Liberal Party. The sitting MP's are watching the government run rings around them and are unable to do anything about it. Sitting MP's may decide to retire rather than face an election. Internal fighting between the Chretien and Martin factions (now the Dion and Ignatieff factions) will cause even more institutional damage.
2. An ineffectual Liberal Party will bleed votes as left wing voters see or believe the NDP, Bloc and Green parties are the effective opposition. Mr Dion's swinging the Liberal party hard left has made the real left wing parties much more attractive to Liberal voters
3. Mr Harper is increasingly being seen as a man who "says what he means and do what he says", while Mr Dion's tough talk evaporates into inaction. He is positioning himself and Mr Dion in the voter's minds ahead of any general election. The rabid rhetoric of Jack Layton *might* backfire against him, a risk Mr Harper is willing to take.
4. The Liberals and NDP are being checked into the boards; they are not able to provide credible alternative courses of action to Conservative legislative initiatives. (This is similar to our criticisms of what the Liberals and NDP offer for Afghanistan if we leave as they want).
I'm sure there are other, more subtle things happening, but I don't presume to know all the ins and outs of what is happening here.
A few observations to go along with your well presented points...
1. It's easy to demoralize a party who wants to play the role of the opposition but who will never vote like the opposition should. The last thing that Dion wants right now is an election, and regardless of what Liberals say on Sunday morning talk shows, they know full well that their leader will lose them the next election. They can try to boost him up as much as they want, but in the end, it will be the end for Dion.
2. Dion swinging to the left (sounds like some form of sexual conotation, doesn't it?) may help left wing Liberals move over, but those people aren't going to be enough to sway people around the country and get the NDP the numbers that it needs to have more of a presence in the House.
3. I don't know if the rhetoric of Layton will backfire against the Conservatives, simply because that while we know where the NDP stand on all issues (something that they should be commended for, even though their policies are shite), they'll never be popular in the provinces that matter the most. Ontario, Quebec, Alberta are the catalyst provinces, and Ontario has never gotten over what Bob Rae did to us as Premier oh so many years ago...Quebec and Alberta are self explanatory.
4. The most subtle thing that I believe is happening is the shift of the Conservatives to an almost "Red Tory" position, given that even their most recent mini budget included ideas that the Liberals agreed with. I'm with-holding judgement on that until I collect my thoughts on the matter.
Cheers for now,
Bandit