Connect with us
[the_ad id="89560"]

Economy

Prime minister and premier combine to reduce living standards in B.C.

Published

4 minute read

From the Fraser Institute

By Jake Fuss

In B.C., the Eby government is following the prime minister’s lead. After nearly two decades of spending restraint  (1999/00 to 2016/17), the province has experienced an explosion in government spending. Program spending will increase from $46.1 billion in 2016-17 to a projected $85.3 billion this year, a nominal increase of more than 85 per cent.

Recently, Prime Minister Justin Trudeau and Premier David Eby had a tête-à-tête and vowed to always “work together on important issues.” While they belong to two different political parties, their visions rely on a larger role for government, which includes more spending, regulation, borrowing and higher taxes. Unsurprisingly, this economic strategy hasn’t worked and has instead led to stagnant living standards in British Columbia and across Canada.

Under the NDP, British Columbians have seen their incomes completely stagnate. B.C.’s per-person GDP, a broad measure of living standards, is expected to be lower this year than in 2018, and decline by an average annual rate of 0.9 per cent from 2022 to 2024—the third biggest drop among the provinces during this period.

This represents a marked departure from the economic results under the previous government. From 2001 to 2017, per-person GDP grew (on average) by 1.4 per cent. And the average British Columbian’s income increased by 27 per cent over these 16 years.

The decline in living standards is also occurring nationally. Canada’s per-person GDP was lower at the end of 2023  than it was in 2014.

Why?

Since first elected in 2015, Prime Minister Trudeau has greatly expanded the federal government’s role in the Canadian economy. Federal program spending (total spending excluding debt interest costs) will increase from $256.2 billion in the final full year of the Harper government to a projected $483.6 billion in 2024-25, an increase of nearly 90 per cent over a decade. The government has financed this spending surge through tax increases and borrowing.

Specifically, the Trudeau government in 2016 raised the top personal income tax rate (which applies to many entrepreneurs and businessowners) and also opaquely increased taxes on middle-income Canadians by eliminating several tax credits (as a result, 86 per cent of middle-income families now pay higher taxes). Federal debt has spiked considerably to finance the government’s insatiable appetite for spending, reaching nearly $2.1 trillion this year, almost double the level in 2014-15.

In B.C., the Eby government is following the prime minister’s lead. After nearly two decades of spending restraint  (1999/00 to 2016/17), the province has experienced an explosion in government spending. Program spending will increase from $46.1 billion in 2016-17 to a projected $85.3 billion this year, a nominal increase of more than 85 per cent.

With Premier Eby’s plan to ramp up spending further in the next few years and incur substantial deficits, B.C.’s net government debt is projected to reach a whopping $128.8 billion by 2026/27—a 227 per cent increase since 2016-17.

The B.C. NDP has also raised one tax after another to feed its appetite for spending. The government hiked personal income tax rates from 14.7 per cent to 16.8 per cent on income between roughly $181,000 and $253,000, and introduced a new top tax rate of 20.5 per cent for top-income earners. And raised the business tax rate from 11.0 to 12.0 per cent in 2018, deterring badly needed investment in the province.

Prime Minister Trudeau and Premier Eby are pursuing the same policies and achieving the same miserable economic results. Simply put, the Trudeau-Eby zero economic growth alliance has reduced the living standards of British Columbians and Canadians.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

We need our own ‘DOGE’ in 2025 to unleash Canadian economy

Published on

From the Fraser Institute

By Kenneth P. Green

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.

Kenneth P. Green

Senior Fellow, Fraser Institute
Continue Reading

Alberta

Trudeau’s Tariff Retaliation Plan: Alberta Says “No Thanks”

Published on

The Opposition with Dan Knight

After years of neglect and exploitation, Alberta refuses to back Trudeau’s countermeasure plan against Trump’s tariffs, exposing the cracks in Canada’s so-called unity.

Let’s take a moment to appreciate Justin Trudeau’s brilliant strategy for handling Trump’s latest stunt: tariffs. Trump, in true Trump fashion, threatens to slap a 25% tariff on Canadian goods, because apparently, Canada is responsible for all of America’s problems—from border security to fentanyl. And Trudeau’s response? A $150 billion countermeasure plan that includes the possibility of crippling Alberta’s energy sector. Genius! Except one small problem: Alberta said, ‘No thanks.’

Why wasn’t Alberta there? Because Premier Danielle Smith isn’t an idiot. Trudeau’s plan includes export levies on Canadian oil, a move that would essentially tell Alberta to torch its own economy to help Trudeau look tough on Trump. Alberta exports $13.3 billion of energy to the U.S. every month, making it the lifeblood of this country’s economy. But sure, let’s just gamble that away because Trudeau needs a distraction from his sinking legacy.

But Alberta’s refusal isn’t just about this plan. It’s about years—years—of Ottawa treating Alberta like the black sheep of Confederation. Remember the Northern Gateway Pipeline? Trudeau killed it. Energy East? Dead, too. Those projects could’ve given Alberta access to global markets. Instead, Trudeau left the province landlocked, dependent on the U.S., and completely vulnerable to economic extortion like this. And now, after all that sabotage, he expects Alberta to ‘unite’ behind his plan? Please.

And don’t even get me started on Bill C-69. They call it the ‘Impact Assessment Act,’ but Albertans know it as the ‘No More Pipelines Bill.’ This masterpiece of legislation basically made it impossible to build anything that moves oil. And just to twist the knife, Trudeau slapped on a carbon tax—because nothing says ‘we care about your economy’ like making it more expensive to run it.

And then there’s Quebec. Oh, Quebec. The province that’s spent years wagging its finger at Alberta, calling its oil sands ‘dirty energy’ and blocking pipeline projects that could’ve helped the whole country. Meanwhile, Quebec gleefully cashes billions in equalization payments, heavily subsidized by Alberta’s oil wealth. That’s right—the same people who call Alberta the bad guy are more than happy to take their money. And now Trudeau wants Alberta to step up and take one for the team? Give me a break.

Danielle Smith saw this nonsense for what it is: exploitation. She flatly refused to sign onto any plan that includes export levies or energy restrictions. And you know what? Good for her. She said, ‘Federal officials are floating the idea of cutting off energy supply to the U.S. and imposing tariffs on Alberta energy. Until these threats cease, Alberta cannot support the federal government’s plan.’ Translation: Alberta is done being Ottawa’s doormat.

Let’s not forget why Alberta is even in this mess. For nine years, Trudeau’s government has treated Alberta like its personal piggy bank, siphoning billions through equalization payments while doing absolutely nothing—zero—to support its economy. When oil prices collapsed and families were struggling, what did Alberta get? Crickets. Trudeau was too busy virtue-signaling to his globalist pals to care. And now, with Trump threatening a 25% tariff that could cripple Alberta’s economy, Trudeau has the audacity to turn around and ask Alberta to make the ultimate sacrifice. You can’t make this stuff up.

And then Danielle Smith does what any rational leader would do—she heads to Mar-a-Lago to defend her province’s interests. And what does Trudeau’s cabinet do? They lose their minds, clutch their pearls, and call her ‘unpatriotic.’ Unpatriotic? Are you kidding me? This is coming from the same government that has spent nearly a decade treating Alberta like the annoying little sibling of Confederation—good enough to bankroll Quebec’s luxurious equalization payments, but not important enough to actually listen to. And now, after years of kicking Alberta to the curb, they expect Smith to roll over, play nice, and ‘work together’? Please.

Doug Ford says, ‘United we stand, divided we fall.’ Great soundbite, Doug. But unity doesn’t mean asking one province to carry the load while others reap the rewards. Quebec Premier François Legault says, ‘Nothing’s off the table.’ Of course not—Quebec isn’t paying the price. This isn’t unity; it’s a shakedown.

Here’s the reality: Alberta isn’t at the table because Ottawa hasn’t earned the right to ask them to be. You don’t treat a province like an ATM for nearly a decade and then expect them to roll over when you need a favor. Danielle Smith stood up and said, ‘Enough.’ And frankly, good for her.

So here’s the real question: how long does Ottawa think it can keep exploiting Alberta before the province decides it’s had enough? Because let me tell you, when Alberta’s done, it’s not just the energy sector that’s going to feel it—it’s the entire country.

Subscribe to The Opposition with Dan Knight .

For the full experience, upgrade your subscription.

Continue Reading

Trending

X