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Paul Wells: A poor choice of venue

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From Paul Wells on Substack

The Liberals wanted to beat Pierre Poilievre in the House of Commons. No such luck.

On Pierre Poilievre’s first day as leader of the Opposition, eleven months ago, the Liberals’ best available minister sought to frame the battle ahead.

“We are going to see two competing visions over the course of this session,” Randy Boissonnault said, largely ignoring Poilievre’s first question.

“The first is our government’s plan to support Canadians and those who need it most. The second is that of the Conservative Party and members of Parliament who would leave Canadians to their own devices.”

Boissonnault’s answer struck me at the time as the best available information about the Trudeau Liberals’ plan for Poilievre. It’s worth revisiting.

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At the time, late in September 2022, Poilievre had won a resounding victory over the rest of the Conservative leadership field. The Trudeau government had an opportunity to influence votes’ perceptions of the Liberals’ latest opponent. Many observers assumed the Liberals would do this through some sort of ad campaign, as Stephen Harper had done against Paul Martin, Stéphane Dion and Michael Ignatieff, and tried to do against Trudeau, always well ahead of an election.

Boissonnault was announcing the Liberals wouldn’t do this. The main parties’ “two competing visions” would become clear throughout “this session,” in the venue where life is divided into sessions: Parliament. (My procedure-wonk friends will remind me that a “session” isn’t a school year, it’s the space between a Throne Speech and a prorogation or dissolution. Still, a year is a good time for an interim check-in, and plainly things are happening.)

I’m going to say it hasn’t gone well for the Liberals. A stack of polls tells me so, but we don’t only need polls. The Cabinet has gathered in Charlottetown to hear from an academic who calls the state of housing in Canada “a crisis.”Meanwhile the guy who ran economic policy for Justin Trudeau’s government for seven years is calling affordable housing “the urgent economic need of today.” Imagine how many urgent economic needs we’ve heard about since 2015. Maybe the urgent economic need all along was to resist the urge to treat every need as urgent. Anyway the Liberals expected they could govern by picking issues that would work to their advantage. Instead an issue has been picked for them.

Poilievre made no secret of his own plan to use housing shortages to illustrate “two competing visions.” Every time he stood that day he repeated that housing prices had doubled under Trudeau. Boissonnault’s response was, in some cases, to ignore the question (“Mr. Speaker, let us talk about how people can pay their bills with our new dental plan”) and in others, to mention the day’s latest government policy: a one-time top-up to the Canada Housing Benefit, which would be worth $500 for people whose family income was under $35,000. The top-up began two months after Boissonnault spoke and ended three months after that, in March of this year. After that, Boissonnault and his colleagues would leave Canadians to their own devices, we might say.

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Why has the parliamentary session, as glimpsed since last September, been a bad choice of venue for the Liberals’ narrative of two competing visions? A few reasons.

First, most Canadians ignore Parliament. This trend has accelerated in the last eight years. Partly because the audience for just about any given thing in our society has declined as attention spans fragment. Partly because it’s increasingly obvious that the House of Commons no longer provides even occasional surprise. Stephen Harper and Jean Chrétien used to say surprising things. Not often. But they’d reveal a conversation they’d had, or announce a decision, or cleverly sabotage a question’s intended effect. This crew is earnest and general. Always.

Second, Poilievre likes Parliament more than Trudeau does. Not in the sense that he respects it as an institution. Neither of them does. The whole notion is quaint. But Poilievre looks forward to Question Period, rehearses for it, relishes its limited opportunities. Trudeau, who systematically demotes naysayers, has never believed he should have to put up with any in the middle of his workday.

It’s easy to understand a guy disliking Parliament. But disliking Parliament makes Parliament an odd choice of venue for making any kind of important case.

The third problem with the notion that an ordinary governing year would define Poilievre is that it allowed Poilievre to specialize while the government generalized. Any Canadian government has to manage the normal array of dreary files, the bilateral relationship with the U.S., the post-pandemic recovery, ports and bridges and health transfers and public-sector strikes. Not every day can be a message day, even for a government that tries to make its every act a message. That’s why governing parties often prefer to put the “governing” and “party” parts of their mission under distinct command structures.

It’s often said that in making his campaign team his governing team, Trudeau limited the effectiveness of his government. It’s increasingly clear the problem goes the other way too: How can a Prime Minister’s Office think clearly about politics?

The upshot is that while the Liberals have been fitfully defining their opponent he has been diligently defining them. It has gone better for him than for them. A new poll, by Abacus for the Toronto Star, shows that “more [respondents] think Poilievre is genuine than phoney, strong instead of weak, down to earth instead of elitist.” This will be vexing news for readers who think the Conservative leader is phoney, weak and elitist, but in politics the goal isn’t to believe your own beliefs really hard, it’s to get other people to believe them. Here the Liberals’ problem is much like their problem on housing: It’s as though they just realized they have a job to do.


A note to readers as an election approaches, whether that election happens in 2023, 2024 or 2025. If you have a strong emotional investment in anyoutcome in that election, this newsletter will certainly disappoint you. I’m not here to help Poilievre. I’m not here to defend Trudeau. I see qualities and flaws in each. I might even amaze everyone by mentioning the NDP, once or twice. This isn’t an artificial stance born of some mandate for “objectivity” or, worse, “balance.” I’m selling my opinions here. But my opinions don’t line up cleanly with the party lines in most elections and they won’t in this one.

Readers who are inclined to work fulltime to correct other readers’ opinions should remind themselves that the election won’t be won or lost in the comment board of the Paul Wells newsletter. Thanks, as always, for your support and interest.

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California planning to double film tax credits amid industry decline

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California legislators have unveiled a bill to follow through with the governor’s plan of more than doubling the state’s film and TV production tax credits to $750 million.

The state’s own analysis warns it’s likely the refundable production credits generate only 20 to 50 cents of state revenue for every dollar the state spends, and the increase could stoke a “race to the bottom” among the 38 states that now have such programs.

Industry insiders say the state’s high production costs are to blame for much of the exodus, and experts say the cost of housing is responsible for a significant share of the higher costs.

The bill creates a special carve-out for shooting in Los Angeles, where productions would be able to claim refundable credits for 35% of the cost of production.

California Gov. Gavin Newsom announced his proposal last year and highlighted his goal of expanding the program at an industry event last week.

“California is the entertainment capital of the world – and we’re committed to ensuring we stay that way,” said Newsom. “Fashion and film go hand in hand, helping to express characters, capture eras in time and reflect cultural movements.”

With most states now offering production credits, economic analysis suggests these programs now produce state revenue well below the cost of the credits themselves.

“A recent study from the Los Angeles County Economic Development Corporation found that each $1 of Program 2.0 credit results in $1.07 in new state and local government revenue. This finding, however, is significantly overstated due to the study’s use of implausible assumptions,” wrote the state’s analysts in a 2023 report. “Most importantly, the study assumes that no productions receiving tax credits would have filmed here in the absence of the credit.”

“This is out of line with economic research discussed above which suggests tax credits influence location decisions of only a portion of recipients,” continued the state analysis. “Two studies that better reflect this research finding suggest that each $1 of film credit results in $0.20 to $0.50 of state revenues.”

“Parks and Recreation” stars Rob Lowe and Adam Scott recently shared on Lowe’s podcast how costs are so high their show likely would have been shot in Europe instead.

“It’s cheaper to bring 100 American people to Ireland than to walk across the lot at Fox past the sound stages and do it and do it there,” said Lowe.

“Do you think if we shot ‘Parks’ right now, we would be in Budapest?” asked Scott, who now stars in “Severance.”

“100%,” replied Lowe. “All those other places are offering 40% — forty percent — and then on top of that there’s other stuff that they do, and then that’s not even talking about the union stuff. That’s just tax economics of it all.”

“It’s criminal what California and LA have let happen. It’s criminal,” continued Lowe. “Everybody should be fired.”

According to the Public Policy Institute of California, housing is the single largest expense for California households.

“Across the income spectrum, 35–44% of household expenditures go to covering rent, mortgages, utilities and home maintenance,” wrote PPIC.

The cost of housing due to supply constraints now makes it nearly impossible for creatives to get their start in LA, said M. Nolan Gray, legislative director at housing regulatory reform organization California YIMBY.

“Hollywood depends on Los Angeles being the place where anybody can show up, take a big risk, and pursue their dreams, and that only works if you have a lot of affordable apartments,” said Gray to The Center Square. “We’ve built a Los Angeles where you have to be fabulously wealthy to have stable and decent housing, and as a result a lot of folks either are not coming, or those who are coming need to paid quite a bit higher to make it worth it, and it’s destroying one of California’s most important industries.”

“Anybody who arrived in Hollywood before the 2010s, their story is always, ‘Yeah, I showed up in LA, and I lived in a really, really  dirt-cheap apartment with like $10 in my pocket.’ That just doesn’t exist anymore,” continued Gray. “Does the Walt Disney of 2025 not take the train from Kansas City to LA? Almost certainly not. If he goes anywhere, he goes to Atlanta.”

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Trump orders 10% baseline tariff on imports, closes de minimis loophole

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Reciprocal tariffs higher on many nations

President Donald Trump on Wednesday put the biggest piece of his new trade policy in effect by signing executive orders that place a 10% baseline tariff on all imports and much higher rates on nations that put taxes on U.S. products.

It could be the opening salvo in a global trade war, or, as Trump sees it, the beginning of a “Golden Age” for U.S. trade.

Trump also closed the small value packages loophole that allowed China to avoid taxes on packages valued at less than $800. Companies such as Temu and Shein used the loophole to ship billions of dollars worth of products directly to U.S. consumers and avoid paying the tax, as The Center Square previously reported.

President Trump speaks about tariffs at a Make America Wealthy Again event

Trump’s moves on Wednesday, which he termed “Liberation Day” for U.S. trade, marked the most significant shift in U.S. trade policy since the end of World War II.

In a speech from the White House’s Rose Garden, Trump said foreign nations for decades have stolen American jobs, factories and industries. He said the tariffs would bring in new jobs, factories and industries and return the U.S. to a manufacturing superpower.

“Our country and its taxpayers have been ripped off for more than 50 years,” Trump said. “But it is not going to happen anymore.”

Trump’s supporters praised the trade overhaul. U.S. Rep. Marjorie Taylor Greene said it was time for foreign nations to pay up.

“If you want to do business in America, you need to play by our rules,” she said. “For too long, American businesses, big and small, have been ripped off by bad trade deals and unfair competition. President Trump is putting a stop to it. He’s standing up for our workers, our companies and our consumers.”

Critics slammed Trump’s trade plans.

“Donald Trump may want to call this ‘Liberation Day,’ but there is nothing liberating for working families who are grappling with the high costs of food, housing, and utilities,” said Illinois Gov. J.B. Pritzker, a Democrat. “Tariffs are a tax. They are a tax on working families, a tax on groceries, and a tax on other everyday necessities.”

Other countries planned their own responses. The European Union plans to retaliate with its own measures.

“Europe has not started this confrontation,” EU boss Ursula von der Leyen said in a speech. “We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.”

She said tariffs are taxes “paid by the people.”

“But Europe has everything to protect our people and our prosperity,” she wrote on X. “We will always promote & defend our interests and values. And we will always stand up for Europe.”

China, the world’s second-largest economy, said Monday that it was planning to coordinate its response to U.S. tariffs with Japan and South Korea.

Japan’s Prime Minister Shigeru Ishiba said Tuesday that he was willing to fly to the U.S. to meet with Trump to get an exemption for Japanese vehicle makers. He also said the government will take steps to minimize the impact of U.S. tariffs on Japanese industries and jobs.

Trump will impose a 10% tariff on all countries that will take effect April 5, 2025 at 12:01 a.m. EDT. Trump will impose an individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including China, India and Vietnam, among others. All other countries will continue to be subject to the 10% tariff baseline, according to the White House.

“These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” according to a White House fact sheet.

Trump’s executive order also gives him authority to increase the tariffs

“if trading partners retaliate” or “decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters,” according to the White House.

“Foreign cheaters have stolen our jobs, ransacked our factories and foreign scavengers have torn apart our once beautiful American dream,” Trump said in the Rose Garden.

For China, the tariff rate will be about 34% on imports from the world’s most populous nation. For European Union countries, it will be 20%. For Japan, the duty will be 24%. Imports from India will get a 26% tariff. Cambodia will get hit with a 49% tariff, among the highest Trump outlined on Wednesday.

For months, the U.S. Chamber of Commerce has warned that tariffs could increase costs for U.S. consumers and hurt businesses. Neil Bradley, the chamber’s chief policy officer, said businesses large and small don’t want tariffs.

“What we have heard from business of all sizes, across all industries, from around the country is that these broad tariffs are a tax increase that will raise prices for American consumers and hurt the economy,” he said.

Last week, Trump announced a 25% tariff on imported automobiles and auto parts, duties that he said would be “permanent.” The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue.

Trump said he hopes to bring in $600 billion to $1 trillion in tariff revenue in the next year or two. Trump also said the tariffs would lead to a manufacturing boom in the U.S., with auto companies building new plants, expanding existing plants and adding jobs.

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