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StatsCan Report Confirms Canada’s Middle Class Is Disappearing Under Liberal Mismanagement

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The Opposition with Dan Knight

A new Statistics Canada report reveals widening income inequality and a shrinking middle class, all while Trudeau’s Liberals push policies that benefit the wealthy and punish working Canadians.

A newly released report from Statistics Canada on household economic accounts for the third quarter of 2024 confirms what many Canadians have long suspected—while the wealthiest continue to rake in profits, middle- and lower-income families are left struggling under the weight of economic policies that seem designed to work against them. The report, released today, paints a stark picture of a country where financial inequality is not just persisting, but growing.

The numbers don’t lie. Income inequality has increased, with the top 40% of earners pulling even further ahead of the bottom 40%. The gap in disposable income between these two groups expanded to 46.9 percentage points, up from 46.3 just a year ago. The highest-income households saw their disposable income rise by 6.8%, largely driven by soaring investment gains, while the poorest Canadians saw only a 3.7% increase, barely enough to keep up with the cost of living. Meanwhile, middle-income earners experienced sluggish wage growth of just 2.7%, well below the national average.

Despite declining interest rates, lower-income households found themselves paying more on mortgages and consumer credit, while the wealthy reaped the benefits of higher investment yields. The data shows that middle-income households, who are already feeling the squeeze from inflation and stagnating wages, saw their share of national income shrink.

The most revealing statistic is in net worth distribution. The top 20% of wealthiest Canadians control nearly two-thirds (64.7%) of the country’s net worth, averaging an eye-watering $3.3 million per household. Meanwhile, the bottom 40% hold just 3.3%, barely scraping by with an average of $83,189 in assets.

However, the real estate market has provided a rare silver lining for some lower-wealth households, as they were able to take advantage of slightly more favorable conditions to buy homes, increasing their net worth at the fastest pace. But even that gain is tempered by the reality that housing costs remain unaffordable for many, and young Canadians under 35 continue to pull back from homeownership altogether.

Let’s be clear—this isn’t happening by accident. This is what happens when you let a government of self-serving narcissists run the country into the ground. Justin Trudeau and his Liberal Party have spent nearly a decade dismantling the Canadian economy, pushing a radical, ideologically driven agenda that benefits their elite donor class while leaving working Canadians behind. And now, as the country crumbles under the weight of their incompetence, Trudeau is running for the exits, leaving the mess to whoever’s foolish enough to take the job.

And what do they do on the way out? Do they work to secure our economy? To make life more affordable? To protect Canadian workers? No. Instead, they decide to pick a fight with the United States. Donald Trump, who actually puts his country first—imagine that—announces a 25% tariff on Canadian imports, a move meant to address drug trafficking and illegal immigration, and what’s the Liberals’ response? Do they try to work out a deal? Do they negotiate in good faith to protect Canadian jobs? No. Instead, Chrystia Freeland comes out swinging, proposing retaliatory tariffs that will hurt Canadian businesses just as much, if not more, than they’ll hurt the U.S.

This isn’t about protecting Canada. This isn’t about securing the border or fighting for our economy. This is about pure, partisan politics. The Liberal base wants conflict with the U.S. Not because it’s good for the country, but because their fragile, self-righteous worldview depends on it. They hate Trump, and they hate that his America-First policies are actually working for American workers. So instead of finding a solution, they escalate. They antagonize. Because their base loves it. Not because Canada benefits, but because Liberals benefit.

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And meanwhile, what’s Jagmeet Singh doing? The man who loves to talk about standing up for the working class? He could pull the plug on this corrupt government today with a non-confidence motion. But he won’t. Because, like every other member of the political elite in this country, he’s more interested in protecting his own position than actually doing his job. He makes noise about fighting for Canadian workers, but when the moment comes to act, he folds—again.

So here we are. The economy is in shambles. The wealth gap is growing. The middle class is getting squeezed to death. And the people in charge are too busy playing partisan games to do anything about it. Trudeau is leaving, but his legacy of economic destruction, division, and incompetence will live on through the same out-of-touch Liberal elites who put us in this mess.

But here’s the thing—Canada is better than this. We are a nation built on hard work, freedom, and opportunity, not on government control, reckless spending, and endless excuses. We are a country that thrives when its people—not bureaucrats in Ottawa—decide their own future.

It’s time for Canadians to take their country back. It’s time to put an end to this cycle of economic ruin and government failure. We don’t need more empty promises, more excuses, or more Liberal arrogance. We need an election. We need leaders who believe in the strength of Canadians, not the power of government.

Enough is enough. If we want a future where hard work is rewarded, where families can afford to buy a home, and where our economy is built to benefit all Canadians—not just the elite—then we must act. This country belongs to you, not the Liberal Party, not the special interests, and certainly not the self-serving political class in Ottawa.

Canada deserves better. And the time to demand it is now.

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It Took Trump To Get Canada Serious About Free Trade With Itself

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From the  Frontier Centre for Public Policy

By Lee Harding

Trump’s protectionism has jolted Canada into finally beginning to tear down interprovincial trade barriers

The threat of Donald Trump’s tariffs and the potential collapse of North American free trade have prompted Canada to look inward. With international trade under pressure, the country is—at last—taking meaningful steps to improve trade within its borders.

Canada’s Constitution gives provinces control over many key economic levers. While Ottawa manages international trade, the provinces regulate licensing, certification and procurement rules. These fragmented regulations have long acted as internal trade barriers, forcing companies and professionals to navigate duplicate approval processes when operating across provincial lines.

These restrictions increase costs, delay projects and limit job opportunities for businesses and workers. For consumers, they mean higher prices and fewer choices. Economists estimate that these barriers hold back up to $200 billion of Canada’s economy annually, roughly eight per cent of the country’s GDP.

Ironically, it wasn’t until after Canada signed the North American Free Trade Agreement that it began to address domestic trade restrictions. In 1994, the first ministers signed the Agreement on Internal Trade (AIT), committing to equal treatment of bidders on provincial and municipal contracts. Subsequent regional agreements, such as Alberta and British Columbia’s Trade, Investment and Labour Mobility Agreement in 2007, and the New West Partnership that followed, expanded cooperation to include broader credential recognition and enforceable dispute resolution.

In 2017, the Canadian Free Trade Agreement (CFTA) replaced the AIT to streamline trade among provinces and territories. While more ambitious in scope, the CFTA’s effectiveness has been limited by a patchwork of exemptions and slow implementation.

Now, however, Trump’s protectionism has reignited momentum to fix the problem. In recent months, provincial and territorial labour market ministers met with their federal counterpart to strengthen the CFTA. Their goal: to remove longstanding barriers and unlock the full potential of Canada’s internal market.

According to a March 5 CFTA press release, five governments have agreed to eliminate 40 exemptions they previously claimed for themselves. A June 1 deadline has been set to produce an action plan for nationwide mutual recognition of professional credentials. Ministers are also working on the mutual recognition of consumer goods, excluding food, so that if a product is approved for sale in one province, it can be sold anywhere in Canada without added red tape.

Ontario Premier Doug Ford has signalled that his province won’t wait for consensus. Ontario is dropping all its CFTA exemptions, allowing medical professionals to begin practising while awaiting registration with provincial regulators.

Ontario has partnered with Nova Scotia and New Brunswick to implement mutual recognition of goods, services and registered workers. These provinces have also enabled direct-to-consumer alcohol sales, letting individuals purchase alcohol directly from producers for personal consumption.

A joint CFTA statement says other provinces intend to follow suit, except Prince Edward Island and Newfoundland and Labrador.

These developments are long overdue. Confederation happened more than 150 years ago, and prohibition ended more than a century ago, yet Canadians still face barriers when trying to buy a bottle of wine from another province or find work across a provincial line.

Perhaps now, Canada will finally become the economic union it was always meant to be. Few would thank Donald Trump, but without his tariffs, this renewed urgency to break down internal trade barriers might never have emerged.

Lee Harding is a research fellow with the Frontier Centre for Public Policy.

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2025 Federal Election

Carney’s budget is worse than Trudeau’s

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By Gage Haubrich

Liberal Leader Mark Carney is planning to borrow more money than former prime minister Justin Trudeau.

That’s an odd plan for a former banker because the federal government is already spending more on debt interest payments than it spends on health-care transfers to the provinces.

Let’s take a deeper look at Carney’s plan.

Carney says that his government would “spend less, invest more.”

At first glance, that might sound better than the previous decade of massive deficits and increasing debt, but does that sound like a real change?

Because if you open a thesaurus, you’ll find that “spend” and “invest” are synonyms, they mean the same thing.

And Carney’s platform shows it. Carney plans to increase government spending by $130 billion. He plans to increase the federal debt by $225 billion over the next four years. That’s about $100 billion more than Trudeau was planning borrow over the same period, according to the most recent Fall Economic Statement.

Carney is planning to waste $5.6 billion more on debt interest charges than Trudeau. Interest charges already cost taxpayers more than $1 billion per week.

The platform claims that Carney will run a budget surplus in 2028, but that’s nonsense. Because once you include the $48 billion of spending in Carney’s “capital” budget, the tiny surplus disappears, and taxpayers are stuck with more debt.

And that’s despite planning to take even more money from Canadians in years ahead. Carney’s platform shows that his carbon tariff, another carbon tax on Canadians, will cost taxpayers $500 million.

The bottom line is that government spending, no matter what pile it is put into, is just government spending. And when the government spends too much, that means it must borrow more money, and taxpayers have to pay the interest payments on that irresponsible borrowing.

Canadians don’t even believe that Carney can follow through on his watered-down plan. A majority of Canadians are skeptical that Carney will balance the operational budget in three years, according to Leger polling.

All Carney’s plan means for Canadians is more borrowing and higher debt. And taxpayers can’t afford anymore debt.

When the Liberals were first elected the debt was $616 billion. It’s projected to reach almost $1.3 trillion by the end of the year, that means the debt has more than doubled in the last decade.

Every single Canadian’s individual share of the federal debt averages about $30,000.

Interest charges on the debt are costing taxpayers $53.7 billion this year. That’s more than the government takes in GST from Canadians. That means every time you go to the grocery store, fill up your car with gas, or buy almost anything else, all that federal sales tax you pay isn’t being used for anything but paying for the government’s poor financial decisions.

Creative accounting is not the solution to get the government’s fiscal house in order. It’s spending cuts. And Carney even says this.

“The federal government has been spending too much,” said Carney. He then went on to acknowledge the huge spending growth of the government over the last decade and the ballooning of the federal bureaucracy. A serious plan to balance the budget and pay down debt includes cutting spending and slashing bureaucracy.

But the Conservatives aren’t off the hook here either. Conservative Leader Pierre Poilievre has said that he will balance the budget “as soon as possible,” but hasn’t told taxpayers when that is.

More debt today means higher taxes tomorrow. That’s because every dollar borrowed by the federal government must be paid back plus interest. Any party that says it wants to make life more affordable also needs a plan to start paying back the debt.

Taxpayers need a government that will commit to balancing the budget for real and start paying back debt, not one that is continuing to pile on debt and waste billions on interest charges.

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