Business
With our economy becalmed, Good Ship Canada needs a new captain

From the MacDonald Laurier Institute
Output has been stagnant for five years now. Canada is ‘as idle as a painted ship upon a painted ocean’
One of my favourite poems is Samuel Coleridge’s “The Rime of the Ancient Mariner.” It describes a ship driven by storms towards the South Pole. An albatross saves the ship and crew but the Ancient Mariner kills it, an act of cruelty for which he is later punished, including by having to repeat the story to strangers for the rest of his life.
It is the verse “Day after day, day after day,/ We stuck, nor breath nor motion;/ As idle as a painted ship/ Upon a painted ocean” that became one of my favourites. It comes back to me periodically when life seems stalled.
Which is the case with Canada these days. Our economy is at a standstill. Interest rates are up and inflation, though trending down, remains stubbornly high. Real GDP growth these past four quarters (August 2022 to August 2023) was a feeble 0.9 per cent. Any growth we do have is from a policy-driven population expansion of close to three per cent. But per capita GDP actually fell 2.1 per cent over that period, which means Canadians are poorer today than they were a year ago.
And it’s not just this year. Canada has been a “painted ship on a painted ocean” for some time. From January 2018 to June of this year, our GDP per capita was flat, according to OECD data released this week. Add in July and August and Canada’s per capita real GDP has declined slightly — from $52,300 in January 2018 to $51,900 in August (in 2012 dollars).
With the pandemic and surging inflation after 2020, you might think other countries’ economies are also becalmed. But they aren’t. U.S. per capita real GDP is up 2.4 per cent over the past year and up 9.3 per cent since January 2018, from US$61,500 to US$67,200 (again in 2012 dollars). At today’s exchange rate, Canada’s per capita GDP is now just 56 per cent of America’s — ouch!
Nor is it just the U.S. we’re slipping behind. Compared to our own slight decline in real per capita GDP since 2018, the OECD average is up 5.6 per cent, though there’s considerable variation across countries. For example, resource-rich Australia’s real per capita GDP was up only 4.8 per cent — which was still better than here — but superstar Ireland’s was up fully 31.0 per cent.
Let’s face it: Sir Wilfrid Laurier’s famous 1904 prediction that “For the next 100 years, Canada shall be the star towards which all men who love progress and freedom shall come” seems hollow these days. It is not that we don’t have the potential to shine; it’s that we so often fail to. We do still attract immigrants, but they often leave — as much as 20 per cent of a cohort over 25 years according to the Conference Board. And if salaries here keep falling behind those in the U.S., will we still be able to attract the best and brightest?
Canada has always been a trading nation but exports as a share of GDP have been relatively flat this past decade. The oil and gas sector has been our most important source of export earnings, surpassing even motor vehicles and parts, but since 2015 the Trudeau government has actively discouraged its growth.
We have had our share of innovations over the years but R&D spending has slipped back to the same share of GDP as it was in 1998. It seems the only way for Canada to develop new things is to subsidize them to the hilt with multi-billion grants like the ones given this past year to three different battery manufacturers.
Our health-care system is a shambles, with long waiting lines and not enough doctors and health professionals. One index ranks Canada’s health system as only 32nd best among 166 countries (with Singapore, Japan, South Korea, Taiwan and Israel ranking highest). We know what the problems are, but we seemingly don’t have the will to fix them.
Our tax system is a mess, with high rates and far too many ineffective incentives. Canada now has one of the highest top personal income tax rates in the world but applies it at much lower incomes than elsewhere, beginning at only twice the average wage. One important driver of U.S. growth was the Tax Cuts and Jobs Act of 2017, which bolstered investment by 20 per cent, as shown in important research released last month.
We are a free rider in defence and security spending, at only 1.29 per cent of GDP, well below the minimum two per cent needed to fulfil our NATO obligations. Our financial contribution to modernize NORAD is lacking despite the growing importance of the Arctic to Russia and China. We have contributed little in the way of advanced weaponry or tanks to our allies in Eastern Europe or the Middle East. Europe is desperate for natural gas but instead of buying it from us it is having to import it from Qatar.
While regional tensions have always been a major part of Canadian history, we seem to have lost all sight of nation-building. National infrastructure projects are absent. Provincial trade barriers undermine internal growth but are hard to remove. Alberta, angry with a federal government intent on shackling its energy industry, is ready to pull out of the national social security system. Quebec is drastically hiking tuition fees on students from the rest of Canada who attend its anglophone universities.
To fulfill its remarkable potential, this country cannot remain a painted ship upon a painted ocean. Someone needs to move the ship forward.
Business
Report: $128 million in federal grants spent on gender ideology

From The Center Square
By
More than $128 million of federal taxpayer money was spent on at least 341 grants to fund gender ideology initiatives under the Biden administration, according to an analysis of federal data by the American Principles Project.
In, “Funding Insanity: Federal Spending on Gender Ideology under Biden-Harris,” APP says it “found how the federal government has been spending hundreds of millions of YOUR MONEY on the Gender Industrial Complex!”
APP says it identified the grants by searching the USA Spending database. The data, which is available for free, is categorized by federal agency; notable grants are highlighted.
The U.S. Health and Human Services Department awarded the greatest amount of funding totaling nearly $84 million through 60 grants.
The Department of State awarded the greatest number of grants, 209, totaling more than $14 million, according to the data.
Other agencies awarding taxpayer-funded gender ideology grants include:
- U.S. Agency for International Development, nearly $18 million through 8 grants;
- National Endowment for the Humanities, more than $2.6 million through 20 grants;
- Department of Justice, $1.9 million through three grants;
- Institute of Museum and Library Services, $1.87 million through 13 grants;
- Department of Education, $1.67 million through two grants;
- Department of Agriculture, $1.6 million through five grants;
- Department of the Interior, more than 1,000,000 awarded through two grants;
- U.S. Department of Housing and Urban Development, more than $548,000 through 4 grants;
- Inter-American Foundation, more than $490,000 through two grants;
- National Endowment for the Arts, $262,000 through 13 grants.
APP also identified 63 federal agency contracts totaling more than $46 million that promote gender ideology. They include total obligated amounts and the number of contracts per agency.
The majority, $31 million, was awarded through USAID. The next greatest amount of $4.4 million was awarded through the Department of Defense.
The Trump administration has taken several approaches to gut USAID, which has been met with litigation. The Department of Defense and other agencies are also under pressure to cut funding and reduce redundancies.
Notable grants include:
- $3.9 million to Key Populations Consortium Uganda for promoting “the safety, agency, well-being and the livelihoods of LGBTQI+ in Uganda;”
- $3.5 million to Outright International for “the Alliance for Global Equality and its mission to promote LGBTQI+ people in priority countries around the world;”
- $2.4 million to the International Rescue Committee for “inclusive consideration of sexual orientation, gender identity, and sexual characteristics in humanitarian assistance;”
- $1.9 million to the American Bar Association to “shield the LGBTQI+ population in the Western Balkans;”
- $1.4 million for “economic empowerment of and opportunity for LGBTQI+ people in Serbia;”
- $1.49 million to Equality for All Foundation, Jamaica to “Strengthen community support structures to upscale LGBT rights advocacy;”
- More than $1 million to Bandhu Social Welfare Society to support gender diverse people in Bangladesh.
One of the grants identified by APP, which has since been cancelled, was $600,000 from the U.S. Department of Agriculture to Southern University Agricultural & Mechanical College in Baton Rouge, Louisiana, to study menstruation and menopause, including in biological men.
According to a description of the grant summary, funding would support research, extension, and teaching to address “growing concerns and issues surrounding menstruation, including the potential health risks posed to users of synthetic feminine hygiene products (FHP);” advancing research in the development of FHP that use natural materials and providing menstrual hygiene management; producing sustainable feminine hygiene sanitary products using natural fibers; providing a local fiber processing center for fiber growers in Louisiana, among others.
It states that menstruation begins in girls at roughly age 12 and ends with menopause at roughly age 51. “A woman will have a monthly menstrual cycle for about 40 years of her life averaging to about 450 periods over the course of her lifetime,” but adds: “It is also important to recognize that transgender men and people with masculine gender identities, intersex and non-binary persons may also menstruate.”
All federal funding was allocated to state agencies through the approval of Congress when it voted to pass continuing resolutions to fund the federal government and approved agency budgets.
Business
We’re paying the bills, why shouldn’t we have a say?

By David Clinton
Shaping Government Spending Choices to Reflect Taxpayer Preferences
Technically, the word “democracy” means “rule of the people”. But we all know that the ability to throw the bums out every few years is a poor substitute for “rule”. And as I’ve already demonstrated, the last set of bums you sent to Ottawa are 19 times more likely than not to simply vote along party lines. So who they are as individuals barely even matters.
This story isn’t new, and it hasn’t even got a decent villain. But it is about a universal weakness inherent in all modern, nation-scale democracies. After all, complex societies governed by hundreds of thousands of public servants who are responsible for spending trillions of dollars can’t realistically account for millions of individual voices. How could you even meaningfully process so many opinions?
Hang on. It’s 2025. These days, meaningfully processing lots of data is what we do. And the challenge of reliably collecting and administrating those opinions is trivial. I’m not suggesting we descend into some hellish form of governance by opinion poll. But I do wonder why we haven’t tried something that’s far more focused, measured, and verifiable: directed revenue spending.
Self-directed income tax payments? Crazy, no? Except that we’ve been doing it in Ontario for at least 60 years. We (sometimes) get to choose which of five school boards – English public, French public, English separate (Catholic), French separate (Catholic), or Protestant separate (Penetanguishene only) – will receive the education portion of our property tax.
Here’s how it could work. A set amount – perhaps 20 percent of the total federal tax you owe – would be considered discretionary. The T1 tax form could include the names of, say, ten spending programs next to numeric boxes. You would enter the percentage of the total discretionary portion of your income tax that you’d like directed to each program with the total of all ten boxes adding up to 100.
The specific programs made available might change from one year to the next. Some might appear only once every few years. That way, the departments responsible for executing the programs wouldn’t have to deal with unpredictable funding. But what’s more important, governments would have ongoing insights into what their constituents actually wanted them to be doing. If they disagreed, a government could up their game and do a better job explaining their preferences. Or it could just give up and follow the will of their taxpayers.
Since there would only be a limited number of pre-set options available, you wouldn’t have to worry about crackpot suggestions (“Nuke Amurika!”) or even reasoned and well-meaning protest campaigns (“Nuke Ottawa!”) taking over. And since everyone who files a tax form has to participate, you won’t have to worry about a small number of squeaky wheels dominating the public discourse.
Why would any governing party go along with such a plan? Well, they almost certainly won’t if that’s any comfort. Nevertheless, in theory at least, they could gain significant political legitimacy were their program preferences to receive overwhelming public support. And if politicians and civil servants truly believed they toil in the service of the people of Canada, they should be curious about what the people of Canada actually want.
What could go wrong?
Well the complexity involved with adding a new layer of constraints to spending planning can’t be lightly dismissed. And there’s always the risk that activists could learn to game the system by shaping mass movements through manipulative online messaging. The fact that wealthy taxpayers will have a disproportionate impact on spending also shouldn’t be ignored. Although, having said that, I’m not convinced that the voices of high-end taxpayers are less valuable than those of the paid lobbyists and PMO influencers who currently get all the attention.
Those are serious considerations. I’m decidedly less concerned about some other possible objections:
- The risk that taxpayers might demonstrate a preference for short term fixes or glamour projects over important long term wonkish needs (like debt servicing) rings hollow. Couldn’t those words just as easily describe the way many government departments already behave?
- Couldn’t taxpayer choices be influenced by dangerous misinformation campaigns? Allowing for the fact the words “misinformation campaign” make me nervous, that’s certainly possible. But I’m aware of no research demonstrating that, as a class, politicians and civil servants are somehow less susceptible to such influences.
- Won’t such a program allow governments to deflect responsibility for their actions? Hah! I spit in your face in rueful disdain! When was the last time any government official actually took responsibility (or even lost a job) over stupid decisions?
- Won’t restricting access to a large segment of funds make it harder to respond to time-sensitive emergencies? There are already plenty of political and policy-based constraints on emergency spending choices. There’s no reason this program couldn’t be structured intelligently enough to prevent appropriate responses to a genuine emergency.
This idea has no more chance of being applied as some of the crazy zero-tax ideas from my previous post. But things certainly aren’t perfect right now, and throwing some fresh ideas into the mix can’t hurt.
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