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Talks to resume after Trump says shutdown could last ‘years’
WASHINGTON — White House officials and congressional staffers will continue negotiations Saturday over the government shutdown, even after President Donald Trump declared he could keep it going for “months or even years.”
Trump met Friday with congressional leaders from both parties as the shutdown hit the two-week mark amid an impasse over his demand for billions of dollars for a border wall with Mexico. Democrats emerged from the meeting, which both sides said was contentious at times, to report little if any progress.
Trump has designated
Trump is framing the upcoming weekend talks as progress, while Democrats are emphasizing families unable to pay bills.
The standoff has prompted economic jitters and anxiety among some in Trump’s own party. But he appeared Friday in the Rose Garden to frame the weekend talks as progress, while making clear he would not reopen the government.
“We won’t be opening until it’s solved,” Trump said. “I don’t call it a shutdown. I call it doing what you have to do for the benefit and the safety of our country.”
Trump said he could declare a national emergency to build the wall without congressional approval, but would first try a “negotiated process.” Trump previously described the situation at the border as a “national emergency” before he dispatched active-duty troops in what critics described as a pre-election stunt.
Trump also said the hundreds of thousands of federal workers who are furloughed or working without pay would want him to “keep going” and fight for border security. Asked how people would manage without a financial safety net, he declared, “The safety net is going to be having a strong border because we’re going to be safe.”
Democrats called on Trump to reopen the government while negotiations continue. Senate Democratic Minority Leader Chuck Schumer said, “It’s very hard to see how progress will be made unless they open up the government.”
Friday’s White House meeting with Trump included eight congressional leaders — the top two Democrats and Republicans of both chambers. People familiar with the session but not authorized to speak publicly described Trump as holding forth at length on a range of subjects but said he made clear he was firm in his demand for $5.6 billion in wall funding and in rejecting the Democrats’ request to reopen the government.
Trump confirmed that he privately told Democrats the shutdown could drag on for months or years, though he said he hoped it wouldn’t last that long. Said Trump, “I hope it doesn’t go on even beyond a few more days.”
House Democrats muscled through legislation Thursday night to fund the government but not Trump’s proposed wall. However, Senate Majority Leader Mitch McConnell has said those measures are non-starters on his side of the Capitol without the president’s support.
A variety of strategies are being floated inside and outside the White House, among them trading wall funding for a deal on immigrants brought to the country as young people and now here illegally, or using a national emergency declaration to build the wall. While Trump made clear during his press conference that talk on DACA (the Deferred Action for Childhood Arrivals program) would have to wait and that he was trying to negotiate with Congress on the wall, the conversations underscored rising Republican anxiety about just how to exit the shutdown.
Some GOP senators up for re-election in 2020, including Cory Gardner of Colorado and Susan Collins of Maine, have voiced discomfort with the shutdown in recent days.
But with staff level talks there is always an open question of whether Trump’s aides are fully empowered to negotiate for the president. Earlier this week, he rejected his own administration’s offer to accept $2.5 billion for the wall. That proposal was made when Pence and other top officials met with Schumer at the start of the shutdown.
During his free-wheeling session with reporters, Trump also wrongly claimed that he’d never called for the wall to be concrete. Trump did so repeatedly during his campaign, describing a wall of pre-cast concrete sections that would be higher than the walls of many of his rally venues. He repeated that promise just days ago.
“An all concrete Wall was NEVER ABANDONED, as has been reported by the media. Some areas will be all concrete but the experts at Border Patrol prefer a Wall that is see through (thereby making it possible to see what is happening on both sides). Makes sense to me!” he tweeted Dec. 31.
Trump was joined by Pence in the Rose Garden, as well as House Republican leaders Kevin McCarthy and Steve Scalise. McConnell, who went back to the Capitol, unaware of the press conference, said it was encouraging that the White House officials and the congressional contingent would meet over the weekend “to see if they can reach an agreement and then punt it back to us for final sign off.”
Schumer said that if McConnell and Senate Republicans stay on the sidelines, “Trump can keep the government shut down for a long time.”
“The president needs an intervention,” Schumer said. “And Senate Republicans are just the right ones to intervene.”
Adding to national unease about the shutdown are economic jitters as analysts warn of the risks of closures that are disrupting government operations across multiple departments and agencies at a time of other uncertainties in the stock market and foreign trade.
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Associated Press writers Alan Fram, Mary Clare Jalonick, Laurie Kellman, Kevin Freking, Matthew Daly, Deb Riechmann and Eileen Putman contributed to this report.
Catherine Lucey, Lisa Mascaro And Jill Colvin, The Associated Press
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What is ‘productivity’ and how can we improve it
From the Fraser Institute
Earlier this year, a senior Bank of Canada official caused a stir by describing Canada’s pattern of declining productivity as an “emergency,” confirming that the issue of productivity is now in the spotlight. That’s encouraging. Boosting productivity is the only way to improve living standards, particularly in the long term. Today, Canada ranks 18th globally on the most common measure of productivity, with our position dropping steadily over the last several years.
Productivity is the amount of gross domestic product (GDP) or “output” the economy produces using a given quantity and mix of “inputs.” Labour is a key input in the production process, and most discussions of productivity focus on labour productivity. Productivity can be estimated for the entire economy or for individual industries.
In 2023, labour productivity in Canada was $63.60 per hour (in 2017 dollars). Industries with above average productivity include mining, oil and gas, pipelines, utilities, most parts of manufacturing, and telecommunications. Those with comparatively low productivity levels include accommodation and food services, construction, retail trade, personal and household services, and much of the government sector. Due to the lack of market-determined prices, it’s difficult to gauge productivity in the government and non-profit sectors. Instead, analysts often estimate productivity in these parts of the economy by valuing the inputs they use, of which labour is the most important one.
Within the private sector, there’s a positive linkage between productivity and employee wages and benefits. The most productive industries (on average) pay their workers more. As noted in a February 2024 RBC Economics report, productivity growth is “essentially the only way that business profits and worker wages can sustainably rise at the same time.”
Since the early 2000s, Canada has been losing ground vis-à-vis the United States and other advanced economies on productivity. By 2022, our labour productivity stood at just 70 per cent of the U.S. benchmark. What does this mean for Canadians?
Chronically lagging productivity acts as a drag on the growth of inflation-adjusted wages and incomes. According to a recent study, after adjusting for differences in the purchasing power of a dollar of income in the two countries, GDP per person (an indicator of incomes and living standards) in Canada was only 72 per cent of the U.S. level in 2022, down from 80 per cent a decade earlier. Our performance has continued to deteriorate since 2022. Mainly because of the widening cross-border productivity gap, GDP per person in the U.S. is now $22,000 higher than in Canada.
Addressing Canada’s “productivity crisis” should be a top priority for policymakers and business leaders. While there’s no short-term fix, the following steps can help to put the country on a better productivity growth path.
- Increase business investment in productive assets and activities. Canada scores poorly compared to peer economies in investment in machinery, equipment, advanced technology products and intellectual property. We also must invest more in trade-enabling infrastructure such as ports, highways and other transportation assets that link Canada with global markets and facilitate the movement of goods and services within the country.
- Overhaul federal and provincial tax policies to strengthen incentives for capital formation, innovation, entrepreneurship and business growth.
- Streamline and reduce the cost and complexity of government regulation affecting all sectors of the economy.
- Foster greater competition in local markets and scale back government monopolies and government-sanctioned oligopolies.
- Eliminate interprovincial barriers to trade, investment and labour mobility to bolster Canada’s common market.
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COP29 was a waste of time
From Canadians For Affordable Energy
The twenty-ninth edition of the U.N. Climate Change Committee’s annual “Conference of the Parties,” also known as COP29, wrapped up recently, and I must say, it seemed a much gloomier affair than the previous twenty-eight. It’s hard to imagine a more downcast gathering of elitists and activists. You almost felt sorry for them.
Oh, there was all the usual nutty Net-Zero-by-2050 proposals, which would make life harder and more expensive in developed countries, and be absolutely disastrous for developing countries, if they were even partially implemented. But a lot of the roughly 65,000 attendees seemed to realize they were just spewing hot air.
Why were they so down? It couldn’t be that they were feeling guilty about their own hypocrisy, since they had flown in, many aboard private jets, to the Middle Eastern petrostate of Azerbaijan, where fossil fuels count for two-thirds of national GDP and 90% of export revenues, to lecture the world on the evils of flying in planes and prospering from the extraction of oil and natural gas. Afterall, they did the same last year in Dubai and there was no noticeable pang of guilt there.
It’s likely that Donald Trump’s recent reelection had a lot to do with it. Living as they do in a media bubble, our governing class was completely blindsided by the American people’s decision to return their 45th president to the White House. And the fact that he won the popular vote this time made it harder to deny his legitimacy. (Note that they’ve never questioned the legitimacy of Justin Trudeau, even though his party has lost the popular vote in the past two federal elections. What’s the saying about the modern Left? “If they didn’t have double standards, they’d have no standards at all.”)
Come January, Trump is committed to (once again) pulling the U.S. out of the Paris Climate Accords, to rolling back the Biden Administration’s anti-fracking and pro-EV regulations, and to giving oil companies the green light to extract as much “liquid gold” (his phrase) as possible, with an eye towards making energy more affordable for American consumers and businesses alike. The chance that they’ll be able to leech billions in taxpayer dollars from the U.S. Treasury while he’s running the show is basically zero.
But it wasn’t just the return of Trump which has gotten the climate brigade down. After a few years on top, environmentalists have been having one setback after another. Green parties saw a huge drop off in support in the E.U. parliament’s elections this past June, losing one-third of their seats in Brussels.
And wherever they’ve actually been in government, in Germany and Ireland for instance, the Greens have dragged down the popularity of the coalitions they were part of. That’s largely because their policies have been like an arrow to the heart of those nations’ economies – see the former industrial titan Germany, where major companies like Volkswagen, Siemens, and the chemical giant BASF are frantically shifting production to China and the U.S. to escape high energy costs.
But while voters around the world are kicking climate ideologues to the curb, there are still a few places where they’re managing to cling to power for dear life.
Here in Canada, for instance, Justin Trudeau and Steven Guilbeault steadfastly refuse to consider revisiting their ruinous Net Zero policies, from their ever-increasing Carbon Tax, to their huge investments in Electric Vehicles and the mandates which will force all of us to buy pricey, unreliable EVs in just over a decade, and to the emissions caps which seek to strangle the natural resource sector on which our economy depends.
Minister Guilbeault was all-in on COP29, heading the Canadian delegation, which “hosted 65 events showcasing Canada’s leadership on climate action, nature-based solutions, sustainable finance, and Canadian clean technologies—while discussing gender equality, youth perspectives, and the critical role of Indigenous knowledge and climate leadership” and stood up for Canadian values such as “2SLGBTQI+” and “gender inclusivity.” Once again, in Azerbaijan, which has been denounced for its human rights abuses.
And no word yet on the cost of all of this – for last year’s COP28 the government – or should I say the taxpayers – spent $1.4M on travel and accommodations alone for the 633 member delegation. That number, not counting the above mentioned events, are sure to be higher, as Azerbaijan is much less of a travel destination than Dubai, and so has fewer flights in and available hotel rooms.
At the same time all of this was going on, Trudeau was 12,000 kms away in Rio de Janeiro, Brazil, telling an audience that carbon taxation is a “moral obligation” which is more important than the cost of living: “It’s really, really easy when you’re in a short-term survive, [to say] I gotta be able to pay the rent this month, I’ve gotta be able to buy groceries for my kids, to say, OK, let’s put climate change as a slightly lower priority.”
This is madness, and it underscores how tone-deaf the prime minister is, and also why current polling looks so good for the Conservatives that Pierre Poilievre might as well start measuring the drapes at the PMO.
He has the Trudeau Liberals’ obsessive pursuit of Net Zero policies in large part to thank for that.
The world is waking up to the true cost of the Net Zero ideology, and leaving it behind. That doesn’t mean the fight is over – the activists and their allies in government are going to squeeze as many tax dollars out of this as they possibly can. But the writing is on the wall, and their window is rapidly closing.
Dan McTeague is President of Canadians for Affordable Energy.
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