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Why living in Canada has become impossible

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From Hindsight

There is a housing crisis, cost-of-living crisis, and now even an immigration crisis. What’s happening to Canada?

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Solar and wind power make electricity more expensive—that’s a fact

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From the Fraser Institute

By Julio Mejía and Elmira Aliakbari

As a new year dawns and winter takes hold, it’s worth considering the cost of energy. After a meeting in Italy last spring, the G7 countries (including Canada) pledged to triple renewable energy sources (e.g. wind, solar) globally to ensure an “affordable” energy future. But while direct costs for wind and solar are dropping, they remain expensive due in part to the backup energy sources required when renewables are not available.

In short, an “affordable” energy future is incompatible with increased reliance on renewables. Here’s why.

Wind and solar energy are intermittent, meaning they aren’t consistently available, so we need an alternative power source when there’s no sunlight or wind given the current limited ability to store energy from solar and wind. So we must maintain enough energy capacity in a parallel system, typically powered by natural gas. Constructing and upkeeping a secondary energy source results in higher overall energy costs because two energy systems cost more than one. Therefore, when evaluating the costs of renewables, we must consider the costs of backup energy.

Often, when proponents claim that wind and solar sources are cheaper than fossil fuels, they ignore these costs. A recent study published in Energy, a peer-reviewed energy and engineering journal, found that—after accounting for backup, energy storage and associated indirect costs—solar power costs skyrocket from US$36 per megawatt hour (MWh) to as high as US$1,548 and wind generation costs increase from US$40 to up to US$504 per MWh.

Which is why when governments phase out fossil fuels to expand the role of renewable sources in the electricity grid, electricity become more expensive. In fact, a study by University of Chicago economists showed that between 1990 and 2015, U.S. states that mandated minimum renewable power sources experienced significant electricity price increases after accounting for backup infrastructure and other costs. Specifically, in those states electricity prices increased by an average of 11 per cent, costing consumers an additional $30 billion annually. The study also found that electricity prices grew more expensive over time, and by the twelfth year, electricity prices were 17 per cent higher (on average).

Europe is another case in point. Between 2006 and 2019, solar and wind sources went from representing around 5 per cent of Germany’s electricity generation to almost 30 per cent in 2019. During that same period, German households experienced an increase in electricity prices from 19.46 cents to 30.46 cents per kilowatt hour—a rise of more than 56 per cent. This surge in prices occurred before the war in Ukraine, which led to an unprecedented price spike in 2022.

For Canada, the outlook is also dire. In a recent report, TD Bank estimated that replacing existing gas generators with renewables (such as solar and wind) in Ontario could increase average electricity costs by 20 per cent by 2035 compared to 2021. In Alberta, electricity prices would  increase by up to 66 per cent by 2035 compared to an scenario without changes. These increases are on top of the 15 to 20 per cent increase in average generation costs expected by 2035 under current government policies.

Clearly, when accounting for backup costs, renewable-powered electricity is more expensive than fossil fuels. Policymakers in Ottawa and across Canada must recognize that integrating renewables into electricity grids can lead to significant price increases for consumers, and they should be honest about that fact with Canadians in 2025 and beyond.

Julio Mejía

Policy Analyst
Elmira Aliakbari

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute
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Taxpocalypse 2025: Trudeau Rings in the New Year with Higher Taxes and Empty Wallets

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The Opposition with Dan Knight

 Taxpayer Federation’s report reveals how Trudeau’s government is using new taxes to crush the middle class, fund wasteful projects, and expand a bloated bureaucracy while Canadians struggle

When the clock strikes midnight, it won’t just be the start of 2025—it’ll mark the beginning of Taxpocalypse 2025, a year where Justin Trudeau’s government will hit the middle class harder than ever before.

The Canadian Taxpayers Federation has released a report that lays bare the financial storm Canadians are about to endure. It’s not just inflation draining your wallet; it’s an avalanche of new taxes designed to fund Trudeau’s bloated government and its endless corruption. Let’s go through the numbers, because you deserve to know what’s really happening.

First, payroll taxes are going up. If you earn $81,200 or more, you’ll be paying $403 more in Canada Pension Plan and Employment Insurance contributions this year. Your employer will also fork out nearly $6,000 per employee. Small businesses—already struggling with inflation and high costs—are being crushed under this weight. This isn’t job creation; it’s job destruction.

Then there’s the carbon tax. Starting tomorrow, it jumps from $80 per tonne to $95, adding 20.9¢ per litre to the cost of gasoline. Filling up a 70-litre tank will now cost you almost $15 in carbon taxes alone. If you heat your home with natural gas, get ready to pay an additional $415 this year. Trudeau claims this is about fighting climate change, but in reality, it’s just another excuse to fill government coffers.

And if you thought inflation was bad, bracket creep makes it worse. As your income grows slightly due to inflation, you’re pushed into higher tax brackets without actually having more buying power. So, you’ll pay more in income tax on money that doesn’t go as far as it did last year. Meanwhile, the wealthy use loopholes to avoid taxes, and the poor get targeted rebates. Once again, it’s the middle class holding the bag.

Don’t believe me about how bad things have gotten under Trudeau? Let’s talk inflation—specifically food inflation. Here are the year-over-year increases:

  • 2021: 4.0% (September)
  • 2022: 11.0% (October)
  • 2023: 8.3% (June)
  • 2024: 2.7% (October)

Now, let’s compound that year over year. Since 2021, food prices have soared 28.37%. Think about that—almost a third of your grocery budget wiped out. A dollar that used to buy a loaf of bread now barely buys three-quarters of one. And this year, Trudeau’s new taxes will take even more out of your wallet.

But while you’re paying more for less, Trudeau has been busy inflating something else: the federal public service. Since he took office in 2015, he has added 108,793 new public servants to the federal payroll—a 42% increase in the size of the federal public service. And for what? Are hospitals better staffed? Are services more efficient? Absolutely not. Wait times for healthcare are worse than ever. Infrastructure projects are endlessly delayed.

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If you ask me, Trudeau bloated the public sector to artificially keep unemployment numbers down. Let’s be clear: it’s the private sector that provides for the public sector, not the other way around. Every new bureaucrat added to the payroll is funded by taxes from hardworking Canadians—people like you—who are already struggling to make ends meet.

So, under Trudeau, you’re paying more for groceries, more in taxes, and getting less in return. This isn’t governance; it’s theft. But here’s the real insult: all of this money is going to fund Trudeau’s swamp of waste and corruption. Take the ArriveCAN app, a disaster that cost $54 million—for what? A glorified QR code. Contracts were handed out to insiders, many of whom didn’t even do any work.

Then there’s the Green Slush Fund, which has wasted nearly $400 million on pet projects rife with conflicts of interest. Liberal insiders funneled taxpayer money into their own businesses, and Trudeau’s government just shrugged.

The alcohol escalator tax is going up too, adding 2% more to the already sky-high taxes on beer, wine, and spirits. And don’t forget the digital services tax, a 3% levy on platforms like Amazon and Netflix. Experts say most of this cost will be passed directly to consumers.

Final Thoughts

This is Justin Trudeau’s Canada: a nation where the poor are shielded, the rich find their loopholes, and the middle class—the backbone of this country—is bled dry. Payroll taxes, carbon taxes, alcohol taxes, income taxes—it’s all part of an elaborate scheme to fund the bloated vanity projects and corruption of a government that no longer even pretends to care about the people footing the bill.

And while Canadians are working longer hours to afford less, struggling to put food on their tables, start families, or even dream of owning a home, Trudeau jet-sets around the world like royalty. Whether it’s sipping top-shelf wine at a global summit or skiing the pristine slopes of Red Mountain, this guy lives like a king while the rest of you pick up the tab.

It’s no wonder Canadians are booing him in public—it’s not only justified, it’s well deserved. He’s earned every jeer, every shout of frustration, because his leadership has failed this country at every turn. Under Trudeau, affordability has become a joke, and hard work no longer guarantees success.

But here’s the best part, Justin: there’s an election this year. Canadians finally get the chance to tell you exactly what they think of your disastrous leadership. They’ll send your Liberal ship straight into the iceberg, where it belongs.

So, go ahead, call the election. Take the globalist agenda you’ve been so proud to champion, pack it up with your carbon-tax hypocrisy, and prepare for your next gig as a keynote speaker for the World Economic Forum. You’ve proven you’re great at reading from a script that someone else writes—just not at running a country.

Enjoy your top sirloin tonight, Justin. Canadians? They’ll be eating Kraft Dinner while watching your government fall apart. Happy New Year. And Canada, don’t forget: Taxpocalypse 2025 starts tomorrow. Let’s make it the year we take our country back.

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