National
Paul Wells: Perhaps Freeland isn’t the victim here. Perhaps it’s Freeland who set Trudeau up
The minister of everything
Did Trudeau just blink?
And now we interrupt my own previously-quiet Sunday night for some rampant speculation. There is a lot going on. I am left to generate hypotheses that might explain some of it.
On Sunday night we watched the last two episodes of The Madness on Netflix (stylish but not entirely persuasive), then it came time to check the headlines, as one does in Ottawa after Netflix.
Holy frijoles: Sean Fraser is said to be leaving the federal cabinet and, when the time comes, federal politics altogether. This is surprising but plausible: the 338Canada projection (which, always remember, is not based on local polling, it’s just an extrapolation, but still) has him 17 points behind the Conservatives in his Central Nova riding, he’s got young children, and one wiseacre wrote 14 months ago that we should expect talent to leave this government:
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But that wasn’t even nearly the night’s biggest big-if-true story: John Ivison is reporting from his tropical outpost that Chrystia Freeland’s getting ready to deliver a fiscal update without the profligate, unworkable free-cheque plan. That’s the $250 “working Canadians rebate” described in this backgrounder, which I should now maybe screenshoot because who knows whether it’ll be there in the morning.
Instead I screenshot Chris Selley on X, who is reliably entertaining:
But here’s where the speculation begins. I’m not sure “they” tried and failed. I think there’s another hypothesis that fits the available data.
The double-reverse Morneau?
It’s been less than a week since the Globe published an article on “tensions” between the PMO and Freeland’s office over “GST holiday, $250 cheques.” The piece, by Globe Ottawa bureau chief Bob Fife and reporter Marieke Walsh, quoted many unnamed sources to the effect that “tensions have risen between Ms. Freeland’s office and the PMO over spending.”
You might say all of this appears to be similar to what happened with Ms. Freeland’s predecessor, Bill Morneau, before he departed the government in 2020. If so, you must be one senior Liberal, because Fife and Walsh quote “one senior Liberal” who says the current situation “appears to be similar to what happened with Ms. Freeland’s predecessor, Bill Morneau, before he departed the government in 2020.”
And indeed, the story was strongly reminiscent of the extraordinary moment, which I can still hardly believe, when a bored Prime Minister had his lackeys organize a leak campaign against his own finance minister during a global fiscal calamity in 2020. Then as now, reporters were breathlessly informed that Trudeau had, at some point, even managed to get The Great Mark Carney on the phone, as if that could justify anything.
(Indeed, one of the underappreciated aspects of Trudeau’s 2020 ejection of Morneau was the way Carney wandered through the story, entirely oblivious, before simply vanishing.)
So Tuesday’s Fife/Walsh story triggered much outrage in Ottawa circles. How dare the PMO set up another finance minister? And a woman at that, even as Trudeau himself was parading as a champion of feminism?
But if Ivison is correct that the cheques will be gone from Monday’s fall update, that leaves open a very different possibility.
Perhaps Freeland isn’t the victim here. Perhaps it’s Freeland who set Trudeau up.
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Indeed, the quotes nearest the top of Fife and Walsh’s story suggest that at least some of their sources are not mere PMO conduits, but rather people who have spent some time energetically rolling their eyes at the PM’s behaviour. “The sources say the idea for a sales-tax break… was driven by the Prime Minister’s Office (PMO), as was the pledge to send $250 benefit cheques,” the reporters write. “The Finance Department viewed the $6.28-billion plan as fiscally unwise, with one source saying Finance officials described the GST holiday as making little economic sense.”
The Globe story does point out that the NDP supports the (also profligate, also unworkable) point-of-sale GST “holiday) but not the $250 cheques, because the NDP, like the Bloc, wants the cheques to go to more people, including seniors. My revered colleague Occam of Razor would say that’s the only explanation anyone needs for the apparent climbdown on the cheques: it’s only prudent to take everything out of a fiscal plan that might lead to a minority government’s defeat in the Commons.
But the tone of Tuesday’s Globe story, the moment of its appearance, and the apparent result — the wreck of the cheque plan — suggest this may be a case of something everyone in Ottawa has seen many times during the Trudeau government: a tactical decision to take a private dispute public, because if there’s one thing that can get this PMO’s attention, it’s an embarrassing headline.
Again, I need to emphasize: I don’t know Fife and Walsh’s sources or their motives. I have found that speculation about a reporter’s anonymous sources is usually just bad guesswork. And the repeated mentions in the Globe story of its “ten sources” suggests the reporters pieced together their account from several sources, that they weren’t passive conduits for anyone.
But as I’ve written a few times in the past, many organizations that deal with this government learned along ago that it is pointless to hope that their concerns will be addressed through routine channels. Instead, you have a much better chance of getting satisfaction by escalating your file out of a dusty cabinet and onto the front page of the Globe and Mail. As I wrote here more than two years ago:
“Everybody knows that if the government of Canada is doing something they don’t like, they should tell a reporter about it, because the government of Canada will instantly reverse course to make the bad headline stop hurting. Issues management squads have the only autonomy in this government. They react to headlines as Dracula did to garlic. This realization is now baked into the procedural book of everyone who deals with this government in any capacity — and, plainly, of increasing numbers of people who work inside it.”
Imagine reading Tuesday’s Globe story if you work in the PMO and you’re not actively scheming to get Chrystia Freeland out of the government. The story would be full of surprises for you: (1) the cheque plan is despised by the Finance Department; (2) somebody is mighty eager to make sure everyone knows it was your idea; (3) somebody is talking about the government losing its finance minister. If you don’t have Carney lined up to take the job, the prospect of a looming vacancy starts to look more like a threat than an opportunity.
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I first met Chrystia Freeland in 1999, when she began a brief stint as deputy editor of the Globe and Mail. (Fife was then working for the Globe’s crosstown rivals at the National Post, as was I.) To say the least, I’ve seen little in recent years that suggests Freeland is a superb communications tactician. But brushing a stunned or recalcitrant PMO back by escalating a story onto the Globe’s front page doesn’t take a deft touch, either. These days, it seems just about everyone can do it.
Anyway, that’s my speculation. Here’s what we know, or will if these stories are confirmed on Monday: Trudeau has formidable resources available to keep himself in his cabinet, but he has no particular such influence over his ministers. All of whom are now being reminded of their autonomy by the example of Fraser. And a multi-billion-dollar scheme that seemed, only days ago, to be the point of the fall update now seems unlikely to be implemented.
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Alberta
Jasper rebuilding delayed as province waits for federal and local government approvals
From Jason Nixon, MLA for Rimbey-Rocky Mountain House-Sundre and Alberta’s Minister of Seniors, Community and Social Services on X
Alberta’s government immediately took action to support those who lost their homes in the Jasper wildfire. We were on track to deliver 250 homes, but Alberta cannot do this without land. It’s been radio silence from Ottawa since Premier Danielle Smith sent a letter to the Prime Minister nearly a month ago. Read my full statement
Business
Trudeau leaves office with worst economic growth record in recent Canadian history
From the Fraser Institute
By Ben Eisen
In the days following Prime Minister Justin Trudeau’s resignation as leader of the Liberal Party, there has been much ink spilt about his legacy. One effusively positive review of Trudeau’s tenure claimed that his successors “will be hard-pressed to improve on his economic track record.”
But this claim is difficult to square with the historical record, which shows the economic story of the Trudeau years has been one of dismal growth. Indeed, when the growth performance of Canada’s economy is properly measured, Trudeau has the worst record of any prime minister in recent history.
There’s no single perfect measure of economic success. However, growth in inflation-adjusted per-person GDP—an indicator of living standards and incomes—remains an important and broad measure. In short, it measures how quickly the economy is growing while adjusting for inflation and population growth.
Back when he was first running for prime minister in 2015, Trudeau recognized the importance of long-term economic growth, often pointing to slow growth under his predecessor Stephen Harper. On the campaign trail, Trudeau blasted Harper for having the “worst record on economic growth since R.B. Bennett in the depths of the Great Depression.”
And growth during the Harper years was indeed slow. The Harper government endured the 2008/09 global financial crisis and subsequent weak recovery, particularly in Ontario. During Harper’s tenure as prime minister, per-person GDP growth was 0.5 per cent annually—which is lower than his predecessors Brian Mulroney (0.8 per cent) and Jean Chrétien (2.4 per cent).
So, growth was weak under Harper, but Trudeau misdiagnosed the causes. Shortly after taking office, Trudeau said looser fiscal policy—with more spending, borrowing and bigger deficits—would help spur growth in Canada (and indeed around the world).
Trudeau’s government acted on this premise, boosting spending and running deficits—but Trudeau’s approach did not move the needle on growth. In fact, things went from bad to worse. Annual per-person GDP growth under Trudeau (0.3 per cent) was even worse than under Harper.
The reasons for weak economic growth (under Harper and Trudeau) are complicated. But when it comes to performance, there’s no disputing that Trudeau’s record is worse than any long-serving prime minister in recent history. According to our recent study published by the Fraser Institute, which compared the growth performance of the five most recent long-serving prime ministers, annual per-person GDP growth was highest under Chrétien followed by Martin, Mulroney, Harper and Justin Trudeau.
Of course, some defenders will blame COVID for Trudeau’s poor economic growth record, but you can’t reasonably blame the steep but relatively short pandemic-related recession for nearly a decade of stagnation.
There’s no single perfect measure of economic performance, but per-person inflation-adjusted economic growth is an important and widely-used measure of economic success and prosperity. Despite any claims to the contrary, Justin Trudeau’s legacy on economic growth is—in historical terms—dismal. All Canadians should hope that his successor has more success and oversees faster growth in the years ahead.
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