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Federal government gets failing grade for fiscal transparency and accountability

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From the Fraser Institute

By Jake Fuss and Grady Munro

Last week, Yves Giroux, the Parliamentary Budgetary Officer, raised a rarely-talked-about issue with the federal government—that is, the release of important fiscal documents is being delayed further and further each year. While at first glance this may not seem like a big deal, it’s a sign of declining transparency—an issue all Canadians should care about.

According to Giroux, the Trudeau government’s failure to yet release this year’s federal public accounts—which will report the final numbers for the 2023-24 fiscal year—“goes against fiscal transparency and accountability” that Canadians should expect.

While budgets outline the government’s plan for spending and revenue each year, the public accounts tell us whether or not the government actually stuck to this plan. Typically, the federal government releases the public accounts in October. Yet we’re entering December and last year’s federal finances remain in question.

Provinces also release public accounts, and though they have in the past displayed a similar tardiness, this year every provincial government has released their public accounts well before the federal government.

Why is this important?

Parliamentarians are expected to make important decisions that affect revenues and spending, yet many of them currently do not have the necessary information to make decisions on behalf of their constituents. Moreover, the federal government makes important commitments—referred to as “fiscal anchors”—to help ensure the sustainability of Canada’s finances. The public accounts are a critical tool for both elected officials and the public to hold government accountable to those commitments. Simply put, these fiscal documents are how we determine whether or not the government is actually staying true to its promises.

Some observers claim the Trudeau government may be intentionally delaying the release of this year’s public accounts to avoid this scrutiny. In its 2023 fall update, and again in the 2024 budget, the government promised to hold the 2023-24 deficit to $40.0 billion. Yet a recent report from the PBO suggests the deficit will instead be $46.8 billion. Since the government might be forced to deliver bad news, Giroux suggested it could be delaying the release “to find a more appropriate time where it gathers less attention.” Those are not the actions of a transparent and accountable government.

The issue of delayed fiscal releases is not limited to the public accounts. The Trudeau government has also released federal budgets later than usual. For example, this year it released the 2024 federal budget on April 16. The budget presents the fiscal plan for the upcoming fiscal year that begins April 1, meaning the federal government didn’t release its plan until more than two weeks after the fiscal year had started. In fact, three of the last four budgets from the Trudeau government have been released after the fiscal year started.

Similarly, the Trudeau government has also heretofore failed to release this year’s fall economic statement, which provides a mid-year update on the government’s budget plan. Again, the government has pushed this release later into the year compared to the past. From 2000 to 2014, no fiscal update was released later than November 22. Yet the Trudeau government has delayed the release of this update into December twice so far (in 2019 and 2021).

Canadians should expect their federal government to release important fiscal information in a timely and transparent manner. Unfortunately, transparency and accountability don’t appear high on this government’s list of priorities.

  • Jake Fuss

    Director, Fiscal Studies, Fraser Institute
  • Grady Munro

    Policy Analyst, Fraser Institute

 

Business

Facebook / Meta’s Mark Zuckerberg on the Joe Rogan Experience

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Earlier this week Mark Zuckerberg rocked the world of information with the news that Facebook, Instagram, and his other Meta properties would no longer use third party fact checking groups to censor information.  As the week wraps up, Zuckerberg sits down for an extended conversation with Joe Rogan.  For anyone interested in the world of information, this is a must see / listen.

From the Joe Rogan Experience

Mark Zuckerberg is the chief executive of Meta Platforms Inc., the company behind Facebook, Instagram, Threads, WhatsApp, Meta Quest, Ray-Ban Meta smart glasses, Orion augmented reality glasses, and other digital platforms, devices, and services.

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Facebook’s New Free Speech Policy Shows Business Getting Back to Business

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Reason.com - Free Minds and Free Markets

Big tech seems to be getting out of the censorship business, and it’s about time. After years of increasingly awkward attempts to placate demands from activist groups and the government to suppress allegedly hateful speech and an amorphous category of “disinformation,” Facebook owner Meta is joining X (formerly Twitter) in substituting user-generated community notes on contested posts for top-down muzzling. There’s no doubt that political shifts in the U.S. heavily influenced the rediscovery of respect for free speech. But whatever the reason, we should celebrate the change and work to make it permanent.

Succumbing to Pressure To Censor

“After Trump first got elected in 2016, the legacy media wrote nonstop about how misinformation was a threat to democracy,” Meta CEO Mark Zuckerberg announced in a January 7 video. “We tried in good faith to address those concerns without becoming the arbiters of truth. But the fact-checkers have just been too politically biased and have destroyed more trust than they’ve created, especially in the U.S.”

“What started as a movement to be more inclusive has increasingly been used to shut down opinions and shut out people with different ideas, and it’s gone too far,” he added.

The implication here is that Zuckerberg and company succumbed to pressure to suppress speech disfavored by the bien pensant class, but rather than satisfying critics, that just fed demand to memory-hole ever more discussion and ideas. The ranks of those demanding that Facebook act as a censor also expanded and became more ominous.

“Even the U.S. government has pushed for censorship,” Zuckerberg noted. “By going after us and other American companies, it has emboldened other governments to go even further.”

This isn’t the first time the Meta CEO has cited government pressure to act as an end-run around the First Amendment’s protections for speech. In an August 26, 2024, letter to the House Judiciary Committee, he revealed that “senior officials from the Biden administration, including the White House, repeatedly pressured our teams for months to censor certain COVID-19 content, including humor and satire.” He also admitted to suppressing reports about Hunter Biden’s laptop at the FBI’s request.

Succumbing to Pressure for Free Speech

By the time of that letter, the backlash against social media censorship was well underway. Elon Musk’s purchase of Twitter (now X) led to the publication of the Twitter files, revealing government pressure on the platform to suppress dissenting ideas. The Facebook files revealed the same of Zuckerberg’s company. U.S. District Court Judge Terry Doughty wrote that government pressure on tech platforms “arguably involves the most massive attack against free speech in United States’ history.” These revelations vindicated complaints by critics of pandemic policy, conservatives, libertarians, and other dissenters that their efforts to communicate were being deleted, shadow-banned, and otherwise censored.

As early as 2020, Pew Research pollsters found “roughly three-quarters of U.S. adults say it is very (37%) or somewhat (36%) likely that social media sites intentionally censor political viewpoints that they find objectionable.”

Which is to say, tech companies’ efforts to escape pressure over allowing users to publish “misinformation” wildly backfired. They came under more pressure than ever from those who objected—often rightly—that they were just trying to share information that others didn’t like.

If pressure led to censorship, it has also led to its reversal. That’s especially clear as Republicans pushed to allow lawsuits over online muzzling and then-candidate (now President-elect) Donald Trump thuggishly threatened Zuckerberg with “life in prison” for his company’s activities.

Zuckerberg even acknowledges bowing to shifting political winds, saying, “the recent elections also feel like a cultural tipping point towards once again prioritizing speech.”

Whatever Mark Zuckerberg’s actual beliefs about freedom of speech, having once given in to political pressure to censor, he’s now succumbing to political pressure to end censorship. As journalist and date-cruncher Nate Silver puts it, “perhaps it’s the right move for the wrong reasons.” It’s quite likely that the Meta CEO’s motivations are pragmatic rather than principled. But at least he’s making the right move.

Zuckerberg now says he’ll follow in the footsteps of Elon Musk, who was the first tech tycoon to push back against pressures for censorship, first in public statements and then in his acquisition of Twitter.

“First, we’re going to get rid of fact-checkers and replace them with community notes, similar to X, starting in the U.S.,” he noted in his video statement. He also promised to get rid of restrictions on “topics like immigration and gender” that were previously subject to scrutiny for alleged wrongthink, focus the attention of automated filters on explicitly illegal content rather than general discourse, and stop deemphasizing political content. Facebook will also move its moderation teams out of the ideological hothouse of California to Texas—arguably just a different ideological hothouse, though one better aligned with a country that just voted as it did and generally favors free speech over Big Brother.

Meta Joins Other Companies, Steps Back from Political Alliances

In backing away from a default affiliation with one faction of American politics as well as the government, Zuckerberg joins not just Musk but also executives at other companies who are jettisoning brief flirtations with trendy causes.

“Walmart is ending some of its diversity programs, the latest big company to shift gears under pressure from a conservative activist,” The Wall Street Journal’s Sarah Nassauer reported in November. The article attributed the shift to public pressure which “has successfully nudged other companies including retailer Tractor Supply and manufacturers Ford and Deere to back away from diversity efforts and other topics.”

That report came after the election put Republicans back on top, but the cultural winds had already shifted direction. Bloomberg reported in March that “Wall Street’s DEI retreat has officially begun.” A few months later, the financial news service noted a decline in interest in environmental, social, and governance investment guidelines associated, like DEI, with the political left.

As in Zuckerberg’s case, it’s not obvious that the business executives in question had a sincere commitment to the causes they now reject, or that their principles, should they have any, have changed. Instead, they seem to belatedly recognize that allying with one faction in a divided society inevitably alienates others. That’s dangerous when the fortunes of factions inevitably rise and fall, and when potential customers can be found across the political spectrum.

By taking their companies out of the political fray and acknowledging their customers’ right to disagree with one another and with the government, Mark Zuckerberg and other business leaders can leave us room to work out our differences in a free society without worrying so much whether the people to whom we give our money are friends or foes.

 

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