Prosperity waning due to Ottawa’s misguided population growth policy

Federal ministers have finally acknowledged that soaring immigration has aggravated the housing affordability crisis and put added pressure on stretched public services.

Last week, in response to growing concern about fast-rising immigration levels, the Trudeau government announced it will cap the number of international student permits over the next two years. Canada’s population increased by 1.2 million last year, following a gain approaching one million in 2022, with these increases almost entirely due to immigration.

The most striking feature of the international migration data is the vertiginous rise in the number of “non-permanent residents” (NPRs). They have accounted for most of the newcomers arriving in Canada since 2020, dwarfing the ranks of new permanent immigrants. NPRs consist of temporary foreign workers and international students (many of whom also work), along with smaller numbers of asylum seekers and refugees, together with some of their families. The stock of NPRs has skyrocketed under the Trudeau government, reaching 2.5 million last year. This means one in every 16 people walking Canada’s streets is a “temporary” immigrant; in some large metro areas, the NPR share is significantly higher.

The federal government’s slapdash handling of immigration has caused problems for other levels of government. The dramatic increase of NPRs occurred without any advance notice, coordination or planning with the provinces, let alone the cities where most newcomers settle. After waving the issue away, federal ministers have finally acknowledged that soaring immigration has aggravated the housing affordability crisis and put added pressure on stretched public services. Remarkably, until last week’s announcement, there had been no federal government limit on student visas and no meaningful oversight of the rapidly expanding international education “industry,” which has largely driven the surge in NPRs.

In addition to the effects on housing demand and public services, Canada’s booming population has contributed to an erosion of prosperity, as measured by the value of economic output on a per-person basis. Nationally, per-person GDP fell by at least two per cent last year and is set for a repeat performance in 2024. Canada is getting poorer, even as our population increases faster than in any other developed country.

Why has the Trudeau government been so keen to turbo-charge population growth? The principal reason cited by federal ministers is to offset the effects of aging. Canada is indeed getting older, like every other developed country. Unfortunately, economic research finds that immigration has relatively little impact on the age structure of the population over time. Nor does it have a measurable influence—either positive or negative—on average incomes, wages or productivity. Simply put, most published academic research suggests that neither population size nor immigration are significantly correlated with higher levels of GDP per person.

It follows that Canada’s current economic development strategy—one premised on strong population growth—is unlikely to increase average incomes or living standards. It’s worth noting that many of the most affluent countries actually have small-to-modest-sized populations. According to the CIA World Factbook, of the 25 richest countries as measured by GDP per person, only one (the United States) is home to more than 20 million people. Among the 30 richest countries, just three meet the 20 million population threshold.

Ultimately, prosperity does not primarily depend on population size. It’s far more important for countries to be productive and innovative, to nurture entrepreneurial wealth creation, to build high-quality workforces, and establish and maintain well-functioning institutions. To improve incomes and living standards, Canadian policymakers should direct their efforts to these areas.

Author:

Jock Finlayson

Senior Fellow, Fraser Institute

Related Topics:#ForeignStudents #FraserInstitute #HealthCareSystem #HousingAffordability #JockFinlayson #NonPermanentResidents Immigration

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Trump opens door to Iranian oil exports

Published on July 3, 2025

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This article supplied by Troy Media.

By Rashid Husain Syed

U.S. President Donald Trump’s chaotic foreign policy is unravelling years of pressure on Iran and fuelling a surge of Iranian oil into global markets. His recent pivot to allow China to buy Iranian crude, despite previously trying to crush those exports, marks a sharp shift from strategic pressure to transactional diplomacy.

This unpredictability isn’t just confusing allies—it’s transforming global oil flows. One day, Trump vetoes an Israeli plan to assassinate Iran’s supreme leader, Ayatollah Khamenei. Days later, he calls for Iran’s unconditional surrender. After announcing a ceasefire between Iran, Israel and the United States, Trump praises both sides then lashes out at them the next day.

The biggest shock came when Trump posted on Truth Social that “China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also.” The statement reversed the “maximum pressure” campaign he reinstated in February, which aimed to drive Iran’s oil exports to zero. The campaign reimposes sanctions on Tehran, threatening penalties on any country or company buying Iranian crude,
with the goal of crippling Iran’s economy and nuclear ambitions.

This wasn’t foreign policy—it was deal-making. Trump is brokering calm in the Middle East not for strategy, but to boost American oil sales to China. And in the process, he’s giving Iran room to move.

The effects of this shift in U.S. policy are already visible in trade data. Chinese imports of Iranian crude hit record levels in June. Ship-tracking firm Vortexa reported more than 1.8 million barrels per day imported between June 1 and 20. Kpler data, covering June 1 to 27, showed a 1.46 million bpd average, nearly 500,000 more than in May.

Much of the supply came from discounted May loadings destined for China’s independent refineries—the so-called “teapots”—stocking up ahead of peak summer demand. After hostilities broke out between Iran and Israel on June 12, Iran ramped up exports even further, increasing daily crude shipments by 44 per cent within a week.

Iran is under heavy U.S. sanctions, and its oil is typically sold at a discount, especially to China, the world’s largest oil importer. These discounted barrels undercut other exporters, including U.S. allies and global producers like Canada, reducing global prices and shifting power dynamics in the energy market.

All of this happened with full knowledge of the U.S. administration. Analysts now expect Iranian crude to continue flowing freely, as long as Trump sees strategic or economic value in it—though that position could reverse without warning.

Complicating matters is progress toward a U.S.-China trade deal. Commerce Secretary Howard Lutnick told reporters that an agreement reached in May has now been finalized. China later confirmed the understanding. Trump’s oil concession may be part of that broader détente, but it comes at the cost of any consistent pressure on Iran.

Meanwhile, despite Trump’s claims of obliterating Iran’s nuclear program, early reports suggest U.S. strikes merely delayed Tehran’s capabilities by a few months. The public posture of strength contrasts with a quieter reality: Iranian oil is once again flooding global markets.

With OPEC+ also boosting output monthly, there is no shortage of crude on the horizon. In fact, oversupply may once again define the market—and Trump’s erratic diplomacy is helping drive it.

For Canadian producers, especially in Alberta, the return of cheap Iranian oil can mean downward pressure on global prices and stiffer competition in key markets. And with global energy supply increasingly shaped by impulsive political decisions, Canada’s energy sector remains vulnerable to forces far beyond its borders.

This is the new reality: unpredictability at the top is shaping the oil market more than any cartel or conflict. And for now, Iran is winning.

Toronto-based Rashid Husain Syed is a highly regarded analyst specializing in energy and politics, particularly in the Middle East. In addition to his contributions to local and international newspapers, Rashid frequently lends his expertise as a speaker at global conferences. Organizations such as the Department of Energy in Washington and the International Energy Agency in Paris have sought his insights on global energy matters.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.