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Trump ends shutdown, signs bill to reopen government
WASHINGTON — Submitting to mounting pressure, President Donald Trump has signed a bill to reopen the government for three weeks, backing down from his demand that Congress give him money for his border wall before federal agencies go back to work.
Standing alone in the Rose Garden Friday, Trump said he would sign legislation funding shuttered agencies until Feb. 15 and try again to persuade lawmakers to finance his long-sought wall. The deal he reached with congressional leaders contains no new money for the wall but ends the longest shutdown in U.S. history.
First the Senate, then the House swiftly and unanimously approved the deal. Late Friday, Trump signed it into law. The administration asked federal department heads to reopen offices in a “prompt and orderly manner” and said furloughed employees can return to work.
Trump’s retreat came in the 35th day of the partial shutdown as intensifying delays at the nation’s airports and another missed payday for hundreds of thousands of federal workers brought new urgency to efforts to resolve the standoff.
“This was in no way a concession,” Trump said in a tweet late Friday, fending off critics who wanted him to keep fighting. “It was taking care of millions of people who were getting badly hurt by the Shutdown with the understanding that in 21 days, if no deal is done, it’s off to the races!”
The shutdown ended as Democratic leaders had insisted it must — reopen the government first, then talk border security.
“The president thought he could crack Democrats, and he didn’t, and I hope it’s a lesson for him,” said the Senate Democratic leader, Chuck Schumer. House Speaker Nancy Pelosi said of her members: “Our unity is our power. And that is what maybe the president underestimated.”
Trump still made the case for a border wall and maintained he might again shut down the government over it. Yet, as negotiations restart, Trump enters them from a weakened position. A strong majority of Americans blamed him for the standoff and rejected his arguments for a border wall, recent polls show.
“If we don’t get a fair deal from Congress, the government will either shut down on Feb. 15, again, or I will use the powers afforded to me under the laws and Constitution of the United States to address this emergency,” Trump said.
The president has said he could declare a national emergency to fund the border wall unilaterally if Congress doesn’t provide the money. Such a move would almost certainly face legal hurdles.
As part of the deal with congressional leaders, a bipartisan committee of House and Senate lawmakers was being formed to consider border spending as part of the legislative process in the weeks ahead.
“They are willing to put partisanship aside, I think, and put the security of the American people first,” Trump said. He asserted that a “barrier or walls will be an important part of the solution.”
The deal includes back pay for some 800,000 federal workers who have gone without paychecks. The Trump administration promises to pay them as soon as possible.
Also expected is a new date for the president to deliver his State of the Union address, postponed during the shutdown. But it will not be Jan. 29 as once planned, according to a person familiar with the planning but unauthorized to discuss it.
As border talks resume, Senate Majority Leader Mitch McConnell said he hopes there will be “good-faith negotiations over the next three weeks to try to resolve our differences.”
Schumer said that while Democrats oppose the wall money, they agree on other ways to secure the border “and that bodes well for coming to an eventual agreement.”
In striking the accord, Trump risks backlash from conservatives who pushed him to keep fighting for the wall. Some lashed out Friday for his having yielded, for now, on his signature campaign promise.
Conservative commentator Ann Coulter suggested on Twitter that she views Trump as “the biggest wimp” to serve as president.
Money for the wall is not at all guaranteed, as Democrats have held united against building a structure as Trump once envisioned, preferring other types of border technology. Asked about Trump’s wall, Pelosi, who has said repeatedly she won’t approve money for it, said: “Have I not been clear? No, I have been very clear.”
Within the White House, there was broad recognition among Trump’s aides that the shutdown pressure was growing, and they couldn’t keep the standoff going indefinitely. The president’s approval numbers had suffered during the impasse. Overnight and Friday, several Republicans were calling on him openly, and in private, to reopen the government.
The breakthrough came as LaGuardia Airport in New York and Newark Liberty International Airport in New Jersey both experienced at least 90-minute delays in takeoffs Friday because of the shutdown. And the world’s busiest airport — Hartsfield-Jackson Atlanta International Airport — was experiencing long security wait times, a warning sign the week before it expects 150,000 out-of-town visitors for the Super Bowl.
The standoff became so severe that, as the Senate opened with prayer, Chaplain Barry Black called on high powers in the “hour of national turmoil” to help senators do “what is right.”
Senators were talking with increased urgency after Thursday’s defeat of competing proposals from Trump and the Democrats. Bipartisan talks provided a glimmer of hope Friday that some agreement could be reached. But several senators said they didn’t know what to expect as they arrived to watch the president’s televised address from their lunchroom off the Senate floor.
The Senate first rejected a Republican plan Thursday reopening the government through September and giving Trump the $5.7 billion he’s demanded for building segments of that wall, a project that he’d long promised Mexico would finance. The 50-47 vote for the measure fell 10 shy of the 60 votes needed to succeed.
Minutes later, senators voted 52-44 for a Democratic alternative that sought to open padlocked agencies through Feb. 8 with no wall money. That was eight votes short. But it earned more support than Trump’s plan, even though Republicans control the chamber 53-47. It was aimed at giving bargainers time to seek an accord while getting paychecks to government workers who are either working without pay or being forced to stay home.
Contributing to the pressure on lawmakers to find a solution was the harsh reality confronting many of the federal workers, who on Friday faced a second two-week payday with no paychecks.
Throughout, the two sides issued mutually exclusive demands that have blocked negotiations from even starting: Trump had refused to reopen government until Congress gave him the wall money, and congressional Democrats had rejected bargaining until he reopened government.
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Associated Press writers Catherine Lucey, Alan Fram, Andrew Taylor, Colleen Long, Matthew Daly, Laurie Kellman and Juliet Linderman contributed to this report.
Jill Colvin, Lisa Mascaro And Zeke Miller, 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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