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Federal government should listen to Canadians and trim the bureaucracy

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From the Fraser Institute

By Jake Fuss and Grady Munro

Under Prime Minister Trudeau the government has introduced sweeping national programs in the areas of dental care, daycare and pharmacare, increased cash transfers to some Canadians while also spending billions on corporate welfare.

Under the Trudeau government, the number of federal government employees has grown substantially, and new polling shows that many Canadians would prefer to see that number decline. This would be a step in the right direction, as the growing size of government imposes costs on Canadians with little to no evidence suggesting they’re better off because of it.

Specifically, from 2015 (the year Prime Minister Trudeau was first elected) to March 2024 (the latest month of available data), the number of federal employees grew from 257,034 to 367,772. In other words, in nine years the Trudeau government has increased the size of the federal bureaucracy by 43.1 per cent, nearly three times the rate of population growth (15.2 per cent) over that same period.

In response, many Canadians believe the government should begin cutting back. According a recent poll, when made aware of this increase, nearly half (47 per cent) of respondents said the federal government should start reducing the number of employees while only 7 per cent said the government should hire more.

The growth of the federal public service is part of the Trudeau government’s approach to governance, which has been to increase Ottawa’s involvement in the economy and day-to-day lives of Canadians. Under Prime Minister Trudeau the government has introduced sweeping national programs in the areas of dental care, daycare and pharmacare, increased cash transfers to some Canadians while also spending billions on corporate welfare.

In other words, the Trudeau government has vastly increased the size of government in Canada.

One way to understand the size of government is to measure government spending as a share of the overall economy (GDP), which shows the extent to which economic activity is directly or indirectly controlled by government activities. From 2014/15 to 2024/25, total federal spending (as a share of GDP) will increase from 14.1 per cent to a projected 17.9 per cent—meaning federal bureaucrats now control a larger share of economic activity than they did before the Trudeau government came to power.

Of course, Canadian taxpayers ultimately foot the bill for a larger federal government, and 86 per cent of middle-income Canadians now pay higher taxes than in 2015. Yet for all this increased spending and taxation, it’s unclear Canadians are better off.

In fact, inflation-adjusted GDP per person (a broad measure of living standards) has been in a historic decline since mid-2019, and as of the second quarter of 2024 it sat below the level it was at the end of 2014. And recent polling shows that 74 per cent of respondents feel the average Canadian family is overtaxed, while 44 per cent feel they receive “poor” or “very poor” value from government services.

Clearly, the federal government should break from the status quo and take a different approach focused on smaller and smarter government. A good first step would be to listen to Canadians and trim the number of bureaucrats.

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Economy

What the Data Shows About the New Canada-Alberta Pipeline Opportunity

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From Energy Now

By Canada Powered by Women

Canada has entered a new period of energy cooperation, marking one of the biggest shifts in federal–provincial alignment on energy priorities in years.


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Last week as Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a memorandum of understanding (MOU) that outlines how both governments will approach a potential pipeline to British Columbia’s coast.

The agreement, which has been described as a “new starting point” after years of tension, lays the groundwork for a privately financed pipeline while also linking this commitment to a broader set of infrastructure priorities across oil and gas, LNG, renewables, critical minerals and electricity transmission.

It also sets out how a privately financed project, moving roughly 300,000 to 400,000 barrels of oil to global markets each day, will be reviewed.

Now that the announcement is behind us, attention has turned to how (or if) a pipeline is going to get built.

Alberta has set out its ambitionsBritish Columbia has its conditions, and the federal government has its own expectations. Together, these positions are shaping what some are calling a “grand bargain” which will be made up of trade-offs.

Trade-offs are not a new concept for the engaged women that Canada Powered by Women (CPW) represents, as they’ve been showing up in our research for several years now. And anyone who reads us also knows we like to look at what the data says.

According to new polling from the Angus Reid Institute, a clear majority of Canadians support a pipeline, with national backing above 60 per cent. And there’s strong support for the pipeline among those in B.C. This aligns with other emerging data points that show Canadians are looking for practical solutions that strengthen affordability and long-term reliability.

By the numbers:

• 60 per cent of Canadians support the pipeline concept, while 25 per cent oppose it.
• 53 per cent of people support in British Columbia, compared to 37 percent opposed.
• 74 per cent of people in Alberta and Saskatchewan support the pipeline.

Our research shows the same trends.

A large majority (85 per cent) of engaged women agree that building pipelines and refining capacity within the country should be prioritized. They favour policies that will progress stability, affordability and long-term economic opportunity.

A key feature of the MOU is the expectation of Indigenous ownership and benefit sharing, which Alberta and B.C. governments identify as essential, and which aligns with public opinion. As of right now, Indigenous groups remain split on support for a pipeline.

The agreement also signals that changes to the federal Oil Tanker Moratorium Act may need to be considered. The moratorium, in place since 2019, is designed to limit large tanker traffic on the North Coast of B.C. because of navigation risks in narrow channels and the need to protect sensitive coastal ecosystems.

Those in favour of the pipeline point to this as a critical barrier to moving Canadian oil to international markets.

Polling from the Angus Reid Institute shows that 47 per cent of Canadians believe the moratorium could be modified or repealed if stronger safety measures are in place. Again, we come back to trade-offs.

The MOU is a starting point and does not replace consultation, environmental review or provincial alignment. These steps are still required before any project can advance. Taken together, the agreement and the data show broad support for strengthening Canada’s energy options.

This will be an issue that engaged women are no doubt going to watch, and the conversation is likely to move from ideas to discussing what trade-offs can be made to bring this opportunity to life.

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Business

US Energy Secretary says price of energy determined by politicians and policies

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From the Daily Caller News Foundation

By David Blackmon

During the latest marathon cabinet meeting on Dec. 2, Energy Secretary Chris Wright made news when he told President Donald Trump that “The biggest determinant of the price of energy is politicians, political leaders, and polices — that’s what drives energy prices.”

He’s right about that, and it is why the back-and-forth struggle over federal energy and climate policy plays such a key role in America’s economy and society. Just 10 months into this second Trump presidency, the administration’s policies are already having a profound impact, both at home and abroad.

While the rapid expansion of AI datacenters over the past year is currently being blamed by many for driving up electric costs, power bills were skyrocketing long before that big tech boom began, driven in large part by the policies of the Obama and Biden administration designed to regulate and subsidize an energy transition into reality. As I’ve pointed out here in the past, driving up the costs of all forms of energy to encourage conservation is a central objective of the climate alarm-driven transition, and that part of the green agenda has been highly effective.

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President Trump, Wright, and other key appointees like Interior Secretary Doug Burgum and EPA Administrator Lee Zeldin have moved aggressively throughout 2025 to repeal much of that onerous regulatory agenda. The GOP congressional majorities succeeded in phasing out Biden’s costly green energy subsidies as part of the One Big Beautiful Bill Act, which Trump signed into law on July 4. As the federal regulatory structure eases and subsidy costs diminish, it is reasonable to expect a gradual easing of electricity and other energy prices.

This year’s fading out of public fear over climate change and its attendant fright narrative spells bad news for the climate alarm movement. The resulting cracks in the green facade have manifested rapidly in recent weeks.

Climate-focused conflict groups that rely on public fears to drive donations have fallen on hard times. According to a report in the New York Times, the Sierra Club has lost 60 percent of the membership it reported in 2019 and the group’s management team has fallen into infighting over elements of the group’s agenda. Greenpeace is struggling just to stay afloat after losing a huge court judgment for defaming pipeline company Energy Transfer during its efforts to stop the building of the Dakota Access Pipeline.

350.org, an advocacy group founded by Bill McKibben, shut down its U.S. operations in November amid funding woes that had forced planned 25 percent budget cuts for 2025 and 2026. Employees at EDF voted to form their own union after the group went through several rounds of budget cuts and layoffs in recent months.

The fading of climate fears in turn caused the ESG management and investing fad to also fall out of favor, leading to a flood of companies backtracking on green investments and climate commitments. The Net Zero Banking Alliance disbanded after most of America’s big banks – Goldman Sachs, J.P. Morgan Chase, Citigroup, Wells Fargo and others – chose to drop out of its membership.

The EV industry is also struggling. As the Trump White House moves to repeal Biden-era auto mileage requirements, Ford Motor Company is preparing to shut down production of its vaunted F-150 Lightning electric pickup, and Stellantis cancelled plans to roll out a full-size EV truck of its own. Overall EV sales in the U.S. collapsed in October and November following the repeal of the $7,500 per car IRA subsidy effective Sept 30.

The administration’s policy actions have already ended any new leasing for costly and unneeded offshore wind projects in federal waters and have forced the suspension or abandonment of several projects that were already moving ahead. Capital has continued to flow into the solar industry, but even that industry’s ability to expand seems likely to fade once the federal subsidies are fully repealed at the end of 2027.

Truly, public policy matters where energy is concerned. It drives corporate strategies, capital investments, resource development and movement, and ultimately influences the cost of energy in all its forms and products. The speed at which Trump and his key appointees have driven this principle home since Jan. 20 has been truly stunning.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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