Business
Prime minister rejects ‘austerity’ despite massive debt and dismal economic growth
From the Fraser Institute
By Grady Munro and Jake Fuss
Adjusting for population growth and inflation, the Trudeau government has recorded the five-highest years (2018-2022) of per-person spending in Canadian history, and is on track to record a sixth.
This week, at the Liberal cabinet retreat in Montreal, Prime Minister Justin Trudeau told reporters he’s against “austerity and cuts” and believes his government must “invest” to “create greater growth” in the economy, thus dashing hopes for any meaningful spending restraint in the upcoming federal budget.
But evidence shows the government’s current plan has not helped the economy despite the prime minister’s claims. Rather than double-down on a failed strategy of higher spending, taxes and borrowing, the Trudeau government should change direction immediately.
Let’s look at the evidence.
According to its latest fiscal projections, the federal government will spend $449.8 billion on programs and services in 2023/24—up 75.5 per cent (nominally) from 2014/15 when program spending was $256.2 billion. Adjusting for population growth and inflation, the Trudeau government has recorded the five-highest years (2018-2022) of per-person spending in Canadian history, and is on track to record a sixth. But have we seen a corresponding increase in economic growth?
No, in fact Canada has experienced an economic growth crisis for the last decade.
One of the best ways to measure economic growth is to use inflation-adjusted per-person gross domestic product (GDP), which provides the broadest measure of living standards for Canadians. According to a recent study by Philip Cross, former chief economic analyst at Statistics Canada, between 2013 and 2022 Canada’s per-person GDP (inflation-adjusted) grew at its slowest pace since the 1930s. Moreover, economic growth in Canada has fallen well behind growth in the United States, showing that Canada’s stagnation was not inevitable.
And there’s little room for optimism. According to OECD estimates, Canada will have the slowest growth in per-person GDP among advanced economies from 2020 to 2030 and 2030 to 2060.
Simply put, the data show that increased government spending has not produced greater prosperity for Canadians.
Indeed, rather than “invest” in Canadians, the Trudeau government has burdened Canadians with mountains of debt. The Trudeau government has yet to balance the budget, despite campaign promises, and this year will likely run its ninth consecutive deficit. Nearly a decade of uninterrupted deficits has increased the federal debt by $941.9 billion. This not only imposes costs on Canadians today—primarily through higher debt interest costs—but also increases the tax burden on future generations who are ultimately responsible for paying off today’s debt.
If the Trudeau government needs a blueprint for reform, it can find it within its own party, which has a history of spending reductions and strong economic growth.
During the mid-1990s, the Chrétien Liberal government introduced meaningful spending reductions that ultimately balanced the federal budget in 1997, marking the first federal budget surplus in nearly 30 years. In addition to spending reductions, the Chrétien government also introduced tax relief and other growth-enhancing policies. And the results were immediate.
Between 1997 and 2007, Canada’s average annual increase in per-person GDP (inflation-adjusted) was 2.2 per cent, which was higher than the OECD average. During the same time period, Canada’s average rate of employment growth was nearly double the average in the OECD and the United States. And the national poverty rate fell from 7.8 per cent in 1996 to 4.9 per cent in 2004. Overall, the Canadian economy outperformed many other industrialized economies during this time and living standards improved for Canadians—despite reductions in government spending.
Despite claims by Prime Minister Trudeau, less government spending (not more) is necessary to help reverse the trend of stagnant economic growth. The Trudeau government should recognize that the current plan isn’t working and change course in its upcoming budget.
Authors:
Business
Premiers fight to lower gas taxes as Trudeau hikes pump costs
From the Canadian Taxpayers Federation
By Jay Goldberg
Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.
You read that right. That’s not the overall fuel bill. That’s just taxes.
Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.
Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.
Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.
Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.
While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.
Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.
In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.
It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.
Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.
When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.
Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”
“Our government will always fight against it,” Ford said.
But there’s some good news for taxpayers: reprieve may be on the horizon.
Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.
With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.
Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.
Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.
Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.
While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.
The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.
That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.
Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.
Agriculture
Sweeping ‘pandemic prevention’ bill would give Trudeau government ability to regulate meat production
From LifeSiteNews
Bill C-293, ‘An Act respecting pandemic prevention and preparedness,’ gives sweeping powers to the federal government in the event of a crisis, including the ability to regulate meat production.
The Trudeau Liberals’ “pandemic prevention and preparedness” bill is set to become law despite concerns raised by Conservative senators that the sweeping powers it gives government, particularly over agriculture, have many concerned.
Bill C-293, or “An Act respecting pandemic prevention and preparedness,” is soon to pass its second reading in the Senate, which all but guarantees it will become law. Last Tuesday in the Senate, Conservative senators’ calls for caution on the bill seemed to fall on deaf ears.
“Being from Saskatchewan I have heard from many farmers who are very concerned about this bill. Now we hear quite a short second reading speech that doesn’t really address some of those major concerns they have about the promotion of alternative proteins and about the phase-out, as Senator Plett was saying, of some of their very livelihoods,” said Conservative Senator Denise Batters during debate of the bill.
Batters asked one of the bill’s proponents, Senator Marie-Françoise Mégie, how they will “alleviate those concerns for them other than telling them that they can come to committee, perhaps — if the committee invites them — and have their say there so that they don’t have to worry about their livelihoods being threatened?”
In response, Mégie replied, “We have to invite the right witnesses and those who will speak about their industry, what they are doing and their concerns. Then we can find solutions with them, and we will do a thorough analysis of the issue. This was done intentionally, and I can provide all these details later. If I shared these details now, I would have to propose solutions myself and I do not have those solutions. I purposely did not present them.”
Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.
Bill C-293 would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”
It would also, as reported by LifeSiteNews, allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.”
A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.”
Text from the bill also states that the government would be able to “promote commercial activities that can help reduce pandemic risk,” which includes the “production of alternative proteins, and phase out commercial activities that disproportionately contribute to pandemic risk, including activities that involve high-risk species.”
The bill has been blasted by the Alberta government, who warned that it could “mandate the consumption of vegetable proteins by Canadians” as well as allow the “the federal government to tell Canadians what they can eat.”
As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The World Economic Forum, a globalist group with links to the Trudeau government, has as part of its Great Reset agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints.
Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption.
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