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From the Fraser Institute
By Jake Fuss and Grady Munro
Under Prime Minister Trudeau the government has introduced sweeping national programs in the areas of dental care, daycare and pharmacare, increased cash transfers to some Canadians while also spending billions on corporate welfare.
Under the Trudeau government, the number of federal government employees has grown substantially, and new polling shows that many Canadians would prefer to see that number decline. This would be a step in the right direction, as the growing size of government imposes costs on Canadians with little to no evidence suggesting they’re better off because of it.
Specifically, from 2015 (the year Prime Minister Trudeau was first elected) to March 2024 (the latest month of available data), the number of federal employees grew from 257,034 to 367,772. In other words, in nine years the Trudeau government has increased the size of the federal bureaucracy by 43.1 per cent, nearly three times the rate of population growth (15.2 per cent) over that same period.
In response, many Canadians believe the government should begin cutting back. According a recent poll, when made aware of this increase, nearly half (47 per cent) of respondents said the federal government should start reducing the number of employees while only 7 per cent said the government should hire more.
The growth of the federal public service is part of the Trudeau government’s approach to governance, which has been to increase Ottawa’s involvement in the economy and day-to-day lives of Canadians. Under Prime Minister Trudeau the government has introduced sweeping national programs in the areas of dental care, daycare and pharmacare, increased cash transfers to some Canadians while also spending billions on corporate welfare.
In other words, the Trudeau government has vastly increased the size of government in Canada.
One way to understand the size of government is to measure government spending as a share of the overall economy (GDP), which shows the extent to which economic activity is directly or indirectly controlled by government activities. From 2014/15 to 2024/25, total federal spending (as a share of GDP) will increase from 14.1 per cent to a projected 17.9 per cent—meaning federal bureaucrats now control a larger share of economic activity than they did before the Trudeau government came to power.
Of course, Canadian taxpayers ultimately foot the bill for a larger federal government, and 86 per cent of middle-income Canadians now pay higher taxes than in 2015. Yet for all this increased spending and taxation, it’s unclear Canadians are better off.
In fact, inflation-adjusted GDP per person (a broad measure of living standards) has been in a historic decline since mid-2019, and as of the second quarter of 2024 it sat below the level it was at the end of 2014. And recent polling shows that 74 per cent of respondents feel the average Canadian family is overtaxed, while 44 per cent feel they receive “poor” or “very poor” value from government services.
Clearly, the federal government should break from the status quo and take a different approach focused on smaller and smarter government. A good first step would be to listen to Canadians and trim the number of bureaucrats.
Authors:
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MLA committee completes liquor model review
Minister for Service Alberta and Red Tape Reduction Dale Nally has accepted recommendations to maintain the current liquor retail model.
After a comprehensive review, the MLA Advisory Committee tasked with evaluating Alberta’s liquor retail model has recommended to the Minister of Service Alberta and Red Tape Reduction that the province should not move forward with allowing liquor sales in grocery and convenience stores. The review into the potential expansion of liquor sales into grocery and convenience stores was initiated to explore the feasibility and impact of such a change on Alberta’s retail liquor industry.
“The idea of expanding liquor sales to grocery and convenience stores has been mused about for years. I’m grateful for the significant work done by MLAs to look into the feasibility and wisdom of such an expansion and the recommendations they’ve put forward. I am pleased to accept those recommendations and ensure Alberta continues to uphold our current model, which is one of the most open in Canada.”
The committee’s recommendation comes after extensive consultations with industry representatives, business owners and experts. The decision to uphold the current model was made to protect Alberta’s private liquor industry, which has been a pillar of economic growth and job creation since privatization in the 1990s.
“Alberta’s private liquor model is a jewel in the crown and allows small businesses to thrive while providing a wide variety of products and services. I accept the MLA committee’s recommendation to keep a level playing field and ensure the continued success of these businesses.”
“Expanding liquor sales to grocery and convenience stores may seem convenient for consumers, but it would have a detrimental effect on the retail liquor store industry. Our review determined that such a move would significantly harm small businesses and could ultimately lead to widespread closures, job losses and diminished selection for consumers.”
The MLA committee’s findings underscore the strength and diversity of Alberta’s existing private liquor model, which offers Albertans one of the most varied selections of alcohol in the country, along with competitive pricing and tailored customer service.
After consulting with members of the liquor industry and analyzing the economic effects, the committee concluded that expanding liquor sales to grocery and convenience stores would significantly harm Alberta’s existing private liquor retail model. Allowing sales of this nature would likely lead to widespread closures of independent liquor stores, job losses and a decrease in product variety and customer service. As a result, the committee recommended maintaining the current model to preserve the strength and stability of Alberta’s unique private liquor industry.
Quick facts
- With more than 1,600 stores and 36,000 liquor products, Alberta has one of the most open liquor markets in Canada.
- There are no barriers to listing a product in Alberta, as licensed liquor agents can pick and choose any products to bring into the province.
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