Business
Argentina’s First Budget Surplus in 123 Years
Argentina has posted its first budget surplus in 123 after President Javir Milei took office and demanded an abrupt halt to government spending. Governments worldwide should carefully take note.
Milei proudly announced:
“The deficit was the root of all our evils — without it, there’s no debt, no emission, no inflation. Today, we have a sustained fiscal surplus, free of default, for the first time in 123 years. This historic achievement came from the greatest adjustment in history and reducing monetary emission to zero. A year ago, a degenerate printed 13% of GDP to win an election, fueling inflation. Today, monetary emission is a thing of the past.”
Economic emissions should become a coined phrase as it is far more harmful than anything government is currently trying to conquer.
Argentina was forced to stop printing money back in 2022 after inflation surpassed 60% in July of that year, and their currency became utterly worthless. The central bank raised rates to nearly 70% to no avail as government continued borrowing. The problem with socialism is that they eventually run out of other people’s money. The government was spending over $6 million daily on social programs, but the poverty rate continued to rise, and around 57% of the working population could not find jobs. There were mass strikes since their money could not fund basic goods. Even if they could find employment, what incentive would the people have when the currency is worthless? Since they had no way to pay off their debt, the government simply continued to print more and devalued its own currency in the process.
Javir Milei was called a right-wing extremist for denouncing socialism and promising to curtail government spending and social programs. He understood that socialism COULD NOT WORK. It took President Javier Milei of Argentina a mere two months to push his nation into a surplus. The Economy Ministry declared that the government posted a $589 million surplus back in April, the first surplus in a decade. Milei referred to the government as “a criminal organization,” and recognized that the public sector needed to shrink as 341,477 people were on the government payroll when he took office.
Referred to as the “gnocchi” after the Italian pasta dish that is commonly served on the 29th of the month, the same day as payday, are the individuals in Argentina on the government payroll who do absolutely nothing. They were installed by politicians in exchange for favors. Critics claim he is firing at random, but the Milei Administration has assured the public that selecting those who will be laid off will be an “extremely surgical task, done so as not to make mistakes.”
Milei has already eliminated useless agencies such as the Ministry of Culture, Ministry of Health, Ministry of Labor, and Ministry of Social Development. In his words, Argentina is currently a poor country and cannot afford these departments that do absolutely nothing to improve the nation’s economic conditions. He has cut the Cabinet in half and no one has noticed a difference.
Milei removed price controls and devalued the currency by 54%. Transport and fuel subsidies were eliminated. It was noted that these measures would at first hurt PPP before the economy could begin to heal. Imagine inflation cooling in February at 276% — the situation was dire. The International Monetary Fund awarded Argentina a $44 billion credit program. The nation is beginning to stabilize very slowly, and it took decades of deteriorating economic conditions for someone to come in and clean house.
He has called his measures a form of “shock therapy” for Argentina’s economy. Milei agreed to devalue the nation’s peso from around 350 to 800 pesos per USD. He has eliminated quotas on imports and exports and removed the licensing that was difficult to obtain. There is a temporary rise in taxes for non-agricultural trade that brings it on par with industry standards. Transportation and energy subsidies have been eliminated.
Milei is the same man who stood before the crowd at Davos and criticized their glorification of socialism. “The main leaders of the Western world have abandoned the model of freedom for different versions of what we call collectivism,” Milei said to a hostile crowd at Davos. “We’re here to tell you that collectivist experiments are never the solution to the problems that afflict the citizens of the world—rather they are the root cause.”
Those in charge want us to believe that capitalism equates to greed while collectivism is seen as a form of social justice but, of course, requires the money of others. Free enterprise is under constant attack, and Milei is one of the only world leaders fighting for its existence. “Social justice is not just. It doesn’t contribute to the general well-being,” Milei said to Davos, citing that socialism is “intrinsically unfair” and forces the state to attack the people for taxes. “Can any of us say that they voluntarily pay taxes?” he asked the crowd.
He was once called the Donald Trump of Argentina. We can hope that Donald Trump will take swift action to reduce government spending. DOGE appointee Elon Musk congratulated Argentina’s president when news of the budget surplus broke. Unfortunately, America is too far in the hole to recover by slashing programs or cutting government. It would be a massive step forward but our deficit has been permitted to run wild for too long to be tamed.
Business
We need our own ‘DOGE’ in 2025 to unleash Canadian economy
From the Fraser Institute
Canada has a regulation problem. Our economy is over-regulated and the regulatory load is growing. To reverse this trend, we need a deregulation agenda that will cut unnecessary red tape and government bloat, to free up the Canadian economy.
According to the latest “Red Tape” report from the Canadian Federation of Independent Business, government regulations cost Canadian businesses a staggering $38.8 billion in 2020. Together, businesses spent 731 million hours on regulatory compliance—that’s equal to nearly 375,000 fulltime jobs. Canada’s smallest businesses bear a disproportionately high burden of the cost, paying up to five times more for regulatory compliance per-employee than larger businesses. The smallest businesses pay $7,023 per employee annually to comply with government regulation while larger businesses pay $1,237 per employee.
Of course, the Trudeau government has enacted a vast swath of new regulations on large sectors of Canada’s economy—particularly the energy sector—in a quest to make Canada a “net-zero” greenhouse gas (GHG) emitter by 2050 (which means either eliminating fossil fuel generation or offsetting emissions with activities such as planting trees).
For example, the government (via Bill C-69) introduced subjective criteria—including the “gender implications” of projects—into the evaluation process of energy projects. It established EV mandates requiring all new cars be electric vehicles by 2035. And the costs of the government’s new “Clean Electricity Regulations,” to purportedly reduce the use of fossil fuels in generating electricity, remain unknown, although provinces (including Alberta) that rely more on fossil fuels to generate electricity will surely be hardest hit.
Meanwhile in the United States, Donald Trump plans to put Elon Musk and Vivek Ramaswamy in charge of the new Department of Government Efficiency (DOGE), which will act as a presidential advisory commission (not an official government department) for the second Trump administration.
“A drastic reduction in federal regulations provides sound industrial logic for mass head-count reductions across the federal bureaucracy,” the two wrote recently in the Wall Street Journal. “DOGE intends to work with embedded appointees in agencies to identify the minimum number of employees required at an agency for it to perform its constitutionally permissible and statutorily mandated functions. The number of federal employees to cut should be at least proportionate to the number of federal regulations that are nullified: Not only are fewer employees required to enforce fewer regulations, but the agency would produce fewer regulations once its scope of authority is properly limited.”
If Musk and Ramaswamy achieve these goals, the U.S. could leap far ahead of Canada in terms of regulatory efficiency, making Canada’s economy even less competitive than it is today.
That would be bad news for Canadians who are already falling behind. Between 2000 and 2023, Canada’s GDP per person (an indicator of incomes and living standards) lagged far behind the average among G7 countries. Business investment is also lagging. Between 2014 and 2021, business investment per worker (inflation-adjusted, excluding residential construction) in Canada decreased by $3,676 (to $14,687) while it increased by $3,418 (to $26,751) per worker in the U.S. And over-regulation is partly to blame.
For 2025, Canada needs a deregulatory agenda similar to DOGE that will allow Canadian workers and businesses to recover and thrive. And we know it can be done. During a deregulatory effort in British Columbia, which included a minister of deregulation appointed by the provincial government in 2001, there was a 37 per cent reduction in regulatory requirements in the province by 2004. The federal government should learn from B.C.’s success at slashing red tape, and reduce the burden of regulation across the entire Canadian economy.
Addictions
Annual cannabis survey reveals many positive trends — and some concerning ones
On Christmas Eve, during his final year of high school, Justin Schneider’s friend handed him his first bowl of weed.
Schneider says he remembers it being an especially stressful evening and thinking, ‘Oh my God, they were lying to us about this.’
“Here I was this ‘good kid,’ staying away from alcohol and drugs, but this stuff is the best thing I’ve ever had,” he said. “But that reaction was brought on because it was the first time I’d ever taken any type of medication for anxiety.”
At first, Schneider used cannabis to cope with generalized anxiety, depression and insomnia. By his late twenties, he had become a heavy user.
In 2018, after more than 20 years of daily cannabis use, he was finally able to overcome his cannabis dependency with the help of a psychiatrist and addictions counselor.
Canadians’ relationship with cannabis has shifted dramatically since it was first legalized for non-medical use in 2018, a new survey shows.
The 2024 Canadian Cannabis Survey, released by Health Canada Dec. 6, reveals cannabis use has become increasingly normalized, driven by broader legal access and growing social acceptance. It also suggests legalization has achieved many of policymakers’ key goals.
But Schneider and others warn cannabis is not without its risks, and say better public education is required to address some of cannabis’ lesser known risks.
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‘Some sketchy guy’
Health Canada’s annual survey, which collected responses from more than 1,600 Canadians aged 16 and older, reveals a thriving legal cannabis market in Canada.
The number of users purchasing cannabis through legal channels has nearly doubled since legalization, rising from 37 per cent in 2019 to 72 per cent today.
“I imagine if I was just starting out [with cannabis] now, I wouldn’t ever have to interact with some sketchy guy, and that would have been easier growing up,” said Jesse Cohen, a 34-year-old daily cannabis user from Montreal.
Cohen uses cannabis to unwind after work or while performing menial tasks at home. Today, he picks up his supply from a sleek, well-lit government-regulated dispensary. He feels this interaction is safer than buying it on the black market.
Cohen says he has also seen the quality and variety of products on the market improve — accompanied by an increase in price.
In the survey, just over one-quarter of all respondents said they used cannabis for non-medical purposes in the past year, up from 22 per cent in 2018. Among youth, that number was 41 per cent.
The number of youth using cannabis has remained stable since 2018, a finding that challenges some critics’ claims that legalization would lead to higher rates of youth consumption.
“For youth, I do think that the whole legalization de-stigmatized and took the risk out of it — it wasn’t a taboo subject or a taboo activity anymore — so there wasn’t the same draw,” said Ian Culbert, executive director of the Canadian Public Health Association, a non-profit that promotes public health.
“Let’s face it, youth experiment, and if it’s something your grandmother is doing, you don’t necessarily want to be doing it too.”
Another positive trend, Culbert says, is that cannabis users now seem to be better informed about the risks of driving while high.
Only 18 per cent of people who had used cannabis in the past year reported getting behind the wheel after cannabis use, down from 27 per cent in 2018.
Culbert interviewed cannabis users when cannabis was legalized. At that time, many said they thought their driving abilities improved when under the influence of cannabis.
“Of course, that’s just not the truth … They felt that their video game experience was so much better when they were consuming, therefore why wouldn’t driving a car be better?” Culbert said.
“I think [because of] education efforts, and the fact that police across the country have put in programs to identify and prosecute people who are driving impaired, that message has gotten through, and people are now equating it to drinking alcohol and driving.”
Public health campaigns also seem to have raised awareness of cannabis’ risks to physical health. Successive Health Canada cannabis surveys have shown a growing understanding of cannabis’ effects on lung health and youth brain development.
Schneider believes public health campaigns now need to focus more on the mental health risks associated with heavy cannabis use.
“I think there’s a responsibility to say that, for a small proportion of people, it can be very psychologically addictive and very, very risky to mental health.”
According to Health Canada, regular cannabis users can experience psychological and mild physical dependence, with withdrawal symptoms that include irritability, anxiety, upset stomach and disturbed sleep.
“You don’t actually have anxiety,” said Schneider about his own withdrawal symptoms. “But your brain creates it anyway, driving you to use cannabis to relieve it.”
Research also shows frequent use of high-THC cannabis is linked to an increased risk of psychosis, a mental condition marked by a disconnection from reality. Individuals with mental disorders or a family history of schizophrenia are at particular risk.
In the survey, only 70 per cent of respondents said they had enough reliable information to make informed decisions about cannabis use. And the number of respondents saying they have not seen any education campaigns or public health messages about cannabis has increased, from 24 per cent in 2019 to 50 per cent today.
Culbert says the revenue that the government generates from cannabis creates a disincentive for it to issue strong health warnings.
“There’s no coherence in our regulatory and legal frameworks with respect to health harms and the level of regulation,” he said.
“Governments are addicted to their sin taxes,” he said.
This article was produced through the Breaking Needles Fellowship Program, which provided a grant to Canadian Affairs, a digital media outlet, to fund journalism exploring addiction and crime in Canada. Articles produced through the Fellowship are co-published by Break The Needle and Canadian Affairs.
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