Business
The problem with deficits and debt

From the Fraser Institute
By Tegan Hill and Jake Fuss
This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.
But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.
Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:
Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.
Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.
Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).
Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.
Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.
Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.
Business
Beef is becoming a luxury item in Canada

This article supplied by Troy Media.
By Sylvain Charlebois
Canadian beef prices have surged due to a shrinking cattle herd, high transportation costs, and potential market collusion
With summer weather settling in, Canadians are returning to a familiar ritual—ring up the barbecue. But as they approach the meat counter, many are faced with shockingly high prices. This year, the meat aisle has become a case study in supply-side economics and market dysfunction, leaving
consumers to wonder how this all came to be.
Since January, according to Statistics Canada, beef prices have surged dramatically. Striploin is up 34.2 per cent, top sirloin 33.7 per cent, and rib cuts nearly 12 per cent. Pork rib cuts and chicken breasts have each risen 5.9 per cent, while even meatless burger patties are 6.8 per cent more
expensive. Beef has led the way in these increases, and its dominance in the price hikes is striking. What’s particularly concerning is that it’s not just one cut of beef—virtually every option has seen a dramatic jump, putting pressure on Canadian consumers who were already grappling with rising food costs.
The cause behind these increases lies in Canada’s shrinking beef cow inventory, now at just 3.38 million head—the lowest since 1989. This represents a 1.2 per cent drop from last year, but it signals much more than a cyclical decline. Many cattle producers, facing an increasingly volatile market, are choosing to exit the industry while prices are favourable. Others are opting to reinvest in less risky sectors or even shift entirely to crop production, leaving the beef industry in a precarious state. In short, Canada’s beef industry is retreating, and with that retreat comes rising prices, fewer available cattle, and growing uncertainty.
South of the border, the U.S. is seeing a similar trend, but far less severe. According to the United States Department of Agriculture, the
American beef cow herd declined by just 0.5 per cent to 27.9 million head. This relatively modest drop, coupled with less disruption in their production practices, has resulted in more stable prices.
Over the past year, U.S. boneless sirloin steak rose 5.7 per cent, compared to a staggering 22 per cent in Canada. Ground beef saw a 10.8 per cent increase in the U.S., but 23 per cent in Canada. The price difference between the two countries is stark, and Canadians are feeling the inflationary pressure much more acutely.
There are several factors contributing to the price hikes: Canada’s vast geography, high transportation costs, a limited number of federally licensed beef processors, carbon pricing, and higher labour costs. Carbon pricing, in particular, has added a burden to sectors like beef production, where transportation costs are high. Regulations and logistical inefficiencies add to the costs, driving up prices for retailers and, ultimately, consumers.
This combination of factors is having a compounding effect on the price of beef, making it increasingly out of reach for many.
But there’s another possibility we can’t ignore: potential collusion within the industry. In Canada, a small number of large processors control much of the beef supply, which gives them significant influence over prices. The U.S. government has taken strong action against price-fixing among major meat packers like JBS, Tyson Foods, Cargill, and National Beef, leading to multimillion-dollar settlements. In Canada, however, the Competition Bureau has remained largely silent on similar concerns, allowing the possibility of price-fixing to persist unchecked. Perhaps it’s time for Canada to follow the U.S. lead and ensure the beef industry is held accountable for its actions.
The consequences of these rising costs are already evident. According to IBISWorld, Canadian per capita beef consumption fell by 7.1 per cent in 2023 and is expected to drop another 2.1 per cent in 2024. This isn’t merely a shift in dietary preferences—this is a structural change in consumer behaviour. Beef is becoming increasingly viewed as a luxury item, with many budget-conscious households turning to ground beef as a more affordable option. For many Canadians, beef is no longer a staple food but rather an occasional indulgence, reserved for special occasions or holiday meals.
This shift is unfortunate. Beef remains one of the most natural, sustainable sources of protein available to Canadians. Ranchers and processors have made significant strides in improving environmental stewardship, animal welfare, and food safety, often without recognition. Beef is not only nutritionally dense but also supports rural economies and provides a level of traceability few other protein sources can offer.
For many Canadian families, a summer steak on the grill is becoming more of a splurge than a staple. While Canadians will continue to enjoy beef, the frequency and volume of consumption will likely diminish.
Barbecue season hasn’t disappeared, but for many, it’s starting to look a little different: more sausages, more chicken, and fewer striploins. A shame, really, for a product that offers so much more than just taste.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.
Banks
Liberal border bill could usher in cashless economy by outlawing cash payments

From LifeSiteNews
Bill C-2 has raised concerns from legal organizations that warn it could lead to a cashless economy in Canada by banning cash payments over $10,000.
The Liberals’ proposed border legislation may quietly usher in a cashless economy by banning cash payments.
On June 3, the Liberal Party introduced Bill C-2 to strengthen border security and outlaw cash payments over $10,000. Legal organizations have since warned that this is the first step to a cashless economy and digital ID system in Canada.
“Part 11 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to prohibit certain entities from accepting cash deposits from third parties and certain persons or entities from accepting cash payments, donations or deposits of $10,000 or more,” the legislation proposes.
While the bill purports to strengthen border security and restore Canada-U.S. relations, many have warned that government regulation of cash payments is a slippery slope.
In a June 4 X post, the Justice Centre for Constitutional Freedoms (JCCF) warned that “If Bill C-2 passes, it will become a Criminal Code offence for businesses, professionals, and charities to accept cash donations, deposits, or payments of $10,000 or more. Even if the $10,000 payment or donation is broken down into several smaller cash transactions, it will still be a crime for a business or charity to receive it.”
The JCCF pointed out that while cash payments of $10,000 are not common for Canadians, the government can easily reduce “the legal amount to $5,000, then $1,000, then $100, and eventually nothing.”
“Restricting the use of cash is a dangerous step towards tyranny and totalitarianism,” the organization warned. “Cash gives citizens privacy, autonomy, and freedom from surveillance by government and by banks, credit card companies, and other corporations.”
“If we cherish our privacy, we need to defend our freedom to choose cash, in the amount of our choosing,” it continued. “This includes, for example, our right to pay $10,000 cash for a car, or to donate $10,000 (or more) to a charity.”
“Law enforcement already has the tools to fight crime,” JCCF declared. “Perhaps they need a bigger budget to hire more people, or perhaps they need to use existing tools more effectively. In a free society, violating our right to use cash is not the answer.”
A move to restrict Canadians’ use of cash is especially concerning as citizens already saw what a Liberal government will do to those who oppose its narrative during the 2022 Freedom Convoy.
In winter 2022, the Liberal government, under former Prime Minister Justin Trudeau, froze the bank accounts of those who donated to the Freedom Convoy, which featured thousands of Canadians camping in front of Parliament to protest COVID mandates.
Similarly, Liberal Prime Minister Mark Carney’s move to restrict Canadians is hardly surprising considering his close ties to the World Economic Forum and push for digital currency.
In a 2021 article, the National Post noted that “since the advent of the COVID pandemic, Carney has been front and centre in the promotion of a political agenda known as the ‘Great Reset,’ or the ‘Green New Deal,’ or ‘Building Back Better.’
“Carney’s Brave New World will be one of severely constrained choice, less flying, less meat, more inconvenience and more poverty,” the outlet continued.
In light of Carney’s new leadership over Canadians, many are sounding alarm over his distinctly anti-freedom ideas.
Exposing Mark Carney:
“Should sex be up for sale” 😮
“Should there be a market for the right to have children?” 🤯 pic.twitter.com/Q4hftgGIMc
— Mario Zelaya (@mario4thenorth) March 21, 2025
Carney, whose ties to globalist groups have had Conservative Party leader Pierre Poilievre call him the World Economic Forum’s “golden boy”. He has also previously endorsed the carbon tax and even criticized Trudeau when the tax was exempted from home heating oil in an effort to reduce costs for some Canadians.
Carney, who as reported by LifeSiteNews, has admitted he is an “elitist” and a “globalist.” Just recently, he criticized U.S. President Donald Trump for targeting woke ideology and has vowed to promote “inclusiveness” in Canada.
Carney also said that he is willing to use all government powers, including “emergency powers,” to enforce his energy plan.
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