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Justin Trudeau’s legacy—record-high spending and massive debt

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From the Fraser Institute

By Jake Fuss and Grady Munro

On Monday, after weeks of turmoil and speculation, Prime Minister Justin Trudeau told Canadians he’ll resign after the Liberal Party choses a new leader. There will be much talk about Trudeau’s legacy, but the modern Trudeau era was distinguished—among other things—by unprecedented levels of government spending.

The numbers don’t lie.

For example, from 2018 to 2023 Justin Trudeau recorded the six-highest levels of spending (on a per-person basis, after adjusting for inflation) in Canadian history, even after excluding emergency spending during the pandemic. For context, that means the Trudeau government spent more per person during those six years than the federal government spent during the Great Depression, both world wars and the height of the Global Financial Crisis in 2008-09.

Unsurprisingly, the Trudeau government was unable to balance the budget during his nine years in power. After first being elected in 2015, Trudeau promised to balance the budget by 2019—then ran nine consecutive deficits including an astonishing $61.9 billion deficit for the 2023/24 fiscal year, the largest deficit of any year outside of COVID.

The result? Historically high levels of government debt compared to previous prime ministers. From 2020 to 2023, the government racked up the four highest years of total federal debt per person (inflation-adjusted) in Canadian history. Compared to 2014/15 (the last full year under Prime Minister Harper), federal debt per person had increased by $14,127 (as of 2023/24).

While a portion of this debt accumulation took place during the pandemic, a sizable chunk of federal COVID-related spending was wasteful. And federal debt increased significantly before, during and after the pandemic. In short, you can’t blame COVID for the Trudeau government’s wild spending and borrowing spree.

This fiscal record, marked by record-high levels, defines Prime Minister Trudeau’s fiscal legacy, which will burden Canadians for years to come. Spending-driven deficits and debt accumulation impose costs on Canadians—largely in the form of higher debt interest costs, which will hit $53.7 billion in 2024/25 or $1,301 per person. That’s more than all revenue collected via the federal GST.

And because government borrowing pushes the responsibility of paying for today’s spending into the future, today’s debt burden will fall disproportionately on younger generations of Canadians who will face higher taxes to finance today’s borrowing. And a growing tax burden (due to debt accumulation) can hurt future economic performance and the country’s ability to compete with other jurisdictions worldwide for business investment and high-skilled workers.

Under Trudeau, Canada has had an abysmal investment record. From 2014 to 2022 (the latest year of available data), inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by $34 billion. During the same period, after adjusting for inflation, business investment declined by $3,748 per worker—from $20,264 per worker in 2014 to $16,515 per worker in 2022. Due in part to Canada’s collapsing business investment, incomes and living standards have stagnated in recent years.

At the same time, Trudeau raised taxes on top-earners who help drive job-creation and prosperity across the income spectrum, and increased the tax burden on middle-class Canadians. Indeed, 86 per cent of middle-income Canadian families pay more in taxes than they did in 2015.

After approximately a decade in office, Prime Minister Justin Trudeau is stepping down. In his wake, he leaves behind a record of unprecedented spending, a mountain of debt, and higher taxes. It’s no wonder many Canadians are looking for change.

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Trump signs executive order returning to plastic straws

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Quick Hit: 

President Donald Trump has signed an executive order mandating the return of plastic straws in federal government use, reversing what he called a “ridiculous” Biden-era push for paper alternatives.

Key Details: 

  • Trump declared his decision on social media, calling Biden’s paper straw mandate “dead.”
  • The president criticized paper straws for their poor durability, saying they “break” and “explode.”
  • Environmental activists argue the move ignores the global plastic pollution crisis.

Diving Deeper: 

President Donald Trump signed a series of executive orders Monday, including one that reverses the federal government’s use of biodegradable paper straws in favor of plastic. The decision follows Trump’s weekend announcement, where he vowed to end the “ridiculous Biden push for Paper Straws.”

During the signing ceremony in the Oval Office, Trump reiterated his frustration with paper straws, telling reporters, “These things don’t work. I’ve had them many times, and on occasion, they break, they explode.” He assured Americans that they could once again “enjoy your next drink without a straw that disgustingly dissolves in your mouth.”

The shift has drawn swift criticism from environmental groups. Christy Leavitt, plastics campaign director for Oceana, argued the order prioritizes politics over sustainability. “President Trump is moving in the wrong direction on single-use plastics,” Leavitt said. “The world is facing a plastic pollution crisis, and we can no longer ignore one of the biggest environmental threats facing our oceans and our planet today.”

Trump’s executive order on plastic straws was just one of several actions taken Monday. He also signed a full pardon for former Illinois Governor Rod Blagojevich, who was removed from office and imprisoned on public corruption charges. Blagojevich previously appeared on Trump’s Celebrity Apprentice in 2010 while under indictment and had his sentence commuted by Trump during his first term.

Additionally, Trump directed Attorney General Pam Bondi to stop enforcement of the Foreign Corrupt Practices Act, a 1977 law that criminalizes bribery of foreign officials to secure business deals. The move is expected to stir further debate over Trump’s approach to corporate regulation and foreign policy.

With his latest actions, Trump continues to dismantle policies tied to the Biden administration while reinforcing his focus on deregulation and personal freedoms—even in the form of a simple plastic straw.

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Trump reiterates desire to annex Canada after Trudeau admits plan is ‘real thing’

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From LifeSiteNews

By Clare Marie Merkowsky

Donald Trump reaffirmed his desire to annex Canada over the weekend after Trudeau was overheard last week admitting that the threat is a ‘real thing.’

U.S. President Donald Trump reaffirmed his desire to annex Canada shortly after Prime Minister Justin Trudeau was overheard admitting that the threat is a “real thing.”  

During a February 9 Fox News interview with Bret Baier, Trump confirmed that Trudeau was correct: he does plan to absorb Canada into the United States and make it the 51st state.   

“Yeah it is,” Trump said. “I think Canada would be much better off being a 51st state because we lose $200 billion a year with Canada and I’m not gonna let that happen.” 

“Why are we paying $200 billion a year essentially in subsidy to Canada? Now if they’re a 51st state I don’t mind doing it,” he continued.  

While it is true that Canada has a trade surplus with America, Canadian economists have argued that the figure is much lower than $200 billion and that if energy is excluded, the U.S. actually runs a trade surplus with Canada.

Trump’s reaffirmation of his goal to absorb Canada comes after a microphone left on at the Canada-U.S. Economic Summit overheard Trudeau admit that Trump’s threat to take over his northern neighbor is a “real thing.” 

“I suggest that not only does the Trump administration know how many critical minerals we have but that may be even why they keep talking about absorbing us and making us the 51st state,” Trudeau reportedly said. 

“They’re very aware of our resources, of what we have, and they very much want to be able to benefit from those,” he continued. “But Mr. Trump has it in mind that one of the easiest ways of doing that is absorbing our country, and it is a real thing.” 

While Trump’s comments were initially passed off as a joke by many, his persistently referring to Canada as the “51st state” and threatening to use “economic force” to overtake Canada has been met with bipartisan blowback from Canadian officials.  

Conservative Party of Canada leader Pierre Poilievre, a frontrunner for prime minister in the next election, has had choice words for Trump, vowing that Canada will “never” become a U.S. “state.”  

However, Trump’s threats seem to have some force behind them regardless of public opinion polling, with the president reneging on a 25% tariff on Canadian imports just hours before they were set to go into effect. The tariffs have not been ruled out, but merely paused for 30 days while the two governments work toward a solution.   

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