Business
What Will Become of Cities?

From the Brownstone Institute
BY
Everyone was supposed to be back at the office by now. It’s not really happening, however, and this has huge implications for the future of the American city.
Part of the reason is the cost, not only the finances of commuting but also the time. Another contributing factor is the crime and homeless population, which can be quite scary. Between inflation, rising poverty, substance abuse, and rampant post-lockdown incivility, the cities have become far less attractive. The impact on the commercial sector is becoming ever more clear.
Leases are coming up for large office spaces in major cities around the US. But there is a serious problem on the way. Occupancy of these offices is dramatically down in most places around the country. The decline is 30 percent on average and much more in San Francisco, Chicago, and New York City. That’s for now but many tech companies and others have laid off workers, meaning that even the companies that renew will be looking to downsize dramatically and with shorter-term leases.
Dylan Burzinski of Green Street writes in the Wall Street Journal:
“What began as a two-week work-from-home experiment in March 2020 evolved into an entrenched hybrid/remote work environment. Despite return-to-office mandates, office-utilization rates (how many people are physically in an office on any given day) have failed to pick up meaningfully this year and are still 30% to 40% below 2019 levels for most office markets across the country. Employers have shed office space as a result, helping send the amount of office space available for lease shooting up to historic highs across most major U.S. cities. The so-called availability rates are hovering at 25% on average compared with slightly above 15% before Covid—and things could get worse before they get better.”
You might say: there is nothing wrong with remote work. This would have happened regardless. Cities as we know them will pass into the night eventually as the whole world becomes digital.
That might be true in the long term, but it would have been far better to happen organically and not by force. That was the essence of what Burzinski calls the “pandemic” but of course it wasn’t a pathogen that sent millions out of the cities and leaving for the suburbs. It was the forced closures and then vaccine mandates and compulsory segregation by vaccine status.
For a time, cities like New York City, Boston, Chicago, and New Orleans were using state power to exclude shot refuseniks any normal public accommodations. The unvaccinated could not go to the library, the theater, restaurants and bars, and museums. It’s hard to believe that this actually happened in the land of the free but that is the real history of just two years ago.
Then once workers got a taste of remote work, and they fully realized just how ridiculously annoying the commute and office culture truly is, they would not and could not be pushed back into a full-time relationship with the office. That has left half and fully empty skyscrapers in multiple cities in the US.
The signs of doom are everywhere. A poll of New Yorkers has 60% saying that life quality is falling and this is in part due to far less quality foot traffic. San Francisco has record office vacancies. Even large cities in Texas have 25% vacancies. Population declines in many cities are continuing long after pandemic restrictions have been lifted.
And here is Boston.com:
Absent flexibility from building owners, businesses worry that downtown will see even more vacancies and that tourists and office workers slowly returning to the neighborhood will have less reason to make the trip. Consider the worst-case scenario: Downtown falls further into post-pandemic disarray or a long-feared “doom loop.”
Like many big-city downtowns, Boston is still in the midst of its recovery after COVID. Many offices and ground-floor spaces remain empty, and buildings lately have sold for sizable losses. Fears about what downtown will become were only exacerbated by the bankruptcy of the coworking giant WeWork, one of the largest office tenants in Boston.
How far this will go and what the implications will be is anyone’s guess. Will the skylines change? Are we looking at demolitions of some of the grandest structures in the coming years? It’s not entirely out of the question. Economic reality can be like a brick wall: when the expense consistently outpaces the revenue, something has to change.
Why not convert office spaces to domestic apartments? It’s not so easy. The buildings put up after the Second World War were made for air conditioning and had wide footprints without windows in a large swath of the space. That simply doesn’t work for apartments. Cutting a giant hole down the middle is technically possible but economically expensive, requiring the rents in the resulting properties to be in the luxury range.
The next phase will be the fiscal crisis. Dying business districts, declining population, empty office buildings all mean falling tax revenue. The budgets won’t be cut because of pension obligations and school funding. The next place to look is to the capital for bailouts and then of course the federal government. But those will only buy time and certainly won’t address the underlying problem.
What bugs me most about this is just how much it fits with the dream of Anthony Fauci as he and his co-author explained back in August of 2020. Writing months after lockdowns, with American cities on fire with protests, he wrote that we need “radical changes that may take decades to achieve: rebuilding the infrastructures of human existence, from cities to homes to workplaces, to water and sewer systems, to recreational and gatherings venues.”
If your view is that the real problem with infectious disease traces to “the neolithic revolution, 12,000 years ago,” as they claim, you are going to have a serious problem with cities. Recall that this is the guy who said we need to stop shaking hands, forever. The notion of a million people working and socializing together in a few square miles of space is something that would run contrary to the entire vision.
Klaus Schwab of the WEF, too, has an issue with large cities, too, of course, with constant complaints about urbanization and the imagined world in which large swaths of our lives are spent online rather than with friends.
So a tremendous downscaling of cities might have been part of the plan all along. You will notice that none of the cities on the chopping block seem to be offering a viable plan for saving themselves. They could dramatically cut taxes, deregulate childcare, open up more schooling options, turn police attention to petty crime and carjacking instead of traffic fines, and open up zoning. That’s not happening.
New York is going the opposite direction, having effectively banned AirBnB in the city. Why did the city council do this? Because too many renters with space found it more lucrative to offer short-term rentals and overnight stays rather than make long-term contracts for residents. This is a sneaky way of pillaging property owners, not exactly a good plan for attracting real estate investment.
All of this speaks to a much bigger problem, which is that the whole political system seems to be engaged in an amazing game of “Let’s pretend” despite the overwhelming evidence of the disaster that has befallen us. No serious efforts are underway to reverse the damage of pandemic lockdowns and vaccine mandates and segregation. This is partly because there has been zero accountability or even honest public debate about what governments around the country did from 2020-2022. We live amidst the carnage but justice seems farther off than ever.
Yes, a complete reversal is possible but it seems ever less likely, especially with the continued efforts to purge from public life those who dissented during the crisis, as well as the intensifying censorship on all mainstream media platforms.
Once you step back from it, nothing really makes sense. One might suppose that when a whole society – and really globe – embarked on such a crazy experiment and utterly failed in every way, that there would be a major effort to come to terms with it.
The opposite is happening. Even with America’s treasured cities in such grave danger, so much of it provoked by terrible policies over four years, we are still supposed to either not notice or chalk it all up to some inexorable forces of history of which no one has any control.
2025 Federal Election
Does Canada Need a DOGE?

From the Fraser Institute
By Philip Cross
The legions of Canadians wanting to see government spending shrink probably look enviously at how Elon Musk’s Department of Government Efficiency (DOGE) is slashing some government programs in the United States, even if DOGE’s non-surgical chainsaw approach is controversial, to say the least.
Some problems are common to cutting any government’s spending. Ironclad job security for union employees with seniority means cuts are skewed disproportionately to junior staff still on probation, with the regrettable side effect of denying an injection of fresh blood into a sclerotic workforce. Cutting employees and not programs makes it easier for higher staffing to resume: as documented by Carleton University Professor Ian Lee in How Ottawa Spends, even prolonged bouts of austerity do not derail government spending from long-term trend of higher growth. Across the board cuts do not allow for the surgical removal of redundant or inefficient programs and poor performing employees.
Canada has some unique problems with federal government spending. Savoie documents how 41 per cent of federal civil servants are located in Ottawa, versus 16 per cent in Washington and 19 per cent in London, despite Canada having the most decentralized federation in the G7. The concentration in Ottawa partly reflects the exceptional influence exerted by central agencies on all departments. As well, University of Cambridge Professor Dennis Grube found Canada’s civil service was the most resistant to public scrutiny and the most risk adverse in a comparative study of public servants in the U.S., the United Kingdom, Australia, New Zealand and Canada.
Canada’s federal employees are among the most expensive anywhere. The average civil servant costs taxpayers $146,500 a year including all salary, benefits and costs such as computers and training. Multiplying this average cost by 366,316 federal employees yields a total labour bill of $53.7 billion, not including other spending such as $17.8 billion on consultants. All the recent increase in the ranks of the civil service happened in Justin Trudeau’s tenure, expanding 38.5 per cent after Stephen Harper had cut them 9 per cent between 2010 and 2015 in his determination to balance the budget.
While the cost of government employees has risen sharply, the services they provide to the public are dwindling as government spending increasingly is devoted to managing its unwieldy and bloated bureaucracy. As Savoie observes, unions like to paint civil servants as providing essential services such as food inspectors and rescue workers, when in reality most are involved in a vast web of “policy, coordination, liaison, and performance evaluation units.” The fastest growing occupations in the federal government are in administrative services and program administration, whose share of jobs rose from 25.1 per cent in 2010 to 31.9 per cent in 2023 according to the latest report from the Treasury Board.
A chronic problem is the fierce defense offered by public service unions in “protecting non-performers and insulating the public sector from effective outside scrutiny” as Savoie wrote. The refusal to acknowledge and root out non-performers depresses the morale of the average civil servant who’s unfairly tarred with the reputation of a minority. It also motivates the across-the-board chainsaw approach of DOGE, which critics then decry as not discriminating between good and bad employees. The latter could easily be targeted by senior managers, who know exactly who the non-performers are but cannot be bothered with the years of documentation and bureaucratic headaches needed to get rid of them. The cost of poor performers is substantial; if even 10 per cent of the civil service was eliminated as redundant non-performers, the government would save $5.4 billion a year. Potential savings are likely well over $10 billion.
The federal government potentially has enormous leverage in negotiating civil service pay and getting rid of non-performers, because it can unilaterally change the federal pension plan without negotiating with public-sector unions. The federal pension plan is so generous that it’s referred to as the “golden handcuffs” that tie employees to their jobs irrespective of their pay or working conditions. To protect their lucrative pensions, unions inevitably would be willing to make concessions that substantially lower the burden on Canada’s taxpayers and still improve morale within the civil service.
2025 Federal Election
Don’t double-down on net zero again

From the Fraser Institute
In the preamble to the Paris Agreement, world leaders loftily declared they would keep temperature rises “well below 2°C” and perhaps even under 1.5°C. That was never on the cards—it would have required the world’s economies to effectively come to a grinding halt.
The truth is that the “net zero” green agenda, based on massive subsidies and expensive legislation, will likely cost more than CAD$38 trillion per year across the century, making it utterly unattractive to voters in almost every nation on Earth.
When President Trump withdrew the United States from the Paris Climate Agreement for the first time in 2017, then-Canadian Prime Minister Justin Trudeau was quick to claim the moral high ground, declaring that “we will continue to work with our domestic and international partners to drive progress on one of the greatest challenges we face as a world.”
Trudeau has now been swept from the stage. On his first day back in office, President Trump signed an executive order that again begins the formal, twelve-month-long process of withdrawing the United States from the Paris Agreement.
It will be tempting for Canada to step anew into the void left by the United States. But if the goal is to make effective climate policy, whoever is Canada’s prime minister needs to avoid empty virtue signaling. It would be easy for Canada to declare again that it’ll form a “coalition of the willing” with Europe. The truth is that, just like last time, that approach would do next to nothing for the planet.
Climate summits have generated vast amounts of attention and breathless reporting giving the impression that they are crucial to the planet’s survival. Scratch the surface, and the results are far less impressive. In 2021, the world promised to phase-down coal. Since then, global coal consumption has only gone up. Virtually every summit has promised to cut emissions but they’ve increased almost every single year, and 2024 reached a new high.
Way before the Paris Agreement was inked, the Kyoto Protocol was once sold as a key part of the solution to global warming. Yet studies show it achieved virtually nothing for climate change.
In the preamble to the Paris Agreement, world leaders loftily declared they would keep temperature rises “well below 2°C” and perhaps even under 1.5°C. That was never on the cards—it would have required the world’s economies to effectively come to a grinding halt.
The truth is that the “net zero” green agenda, based on massive subsidies and expensive legislation, will likely cost more than CAD$38 trillion per year across the century, making it utterly unattractive to voters in almost every nation on Earth.
The awkward reality is that emissions from Canada, the EU, and other countries pursuing climate policies matter little in the 21st century. Canada likely only makes up about 1.5 per cent of the world’s emissions. Add together Canada’s output with that of every single country of the rich-world OECD, and this only makes up about one-fifth of global emissions this century, using the United Nations’ ‘middle of the road’ forecast. The other four-fifths of emissions come mostly from China, India and Africa.
Even if wealthy countries like Canada impoverish themselves, the result is tiny — run the UN’s standard climate model with and without Canada going net-zero in 2050, and the difference is immeasurable even in 2100. Moreover, much of the production and emissions just move to the Global South—and even less is achieved.

One good example of this is the United Kingdom, which—like Prime Minister Trudeau once did—has leaned into climate policies, suggesting it would lead the efforts for strong climate agreements. British families are paying a heavy price for their government going farther than almost any other in pursuing the climate agenda: just the inflation-adjusted electricity price, weighted across households and industry, has tripled from 2003 to 2023, mostly because of climate policies. This need not have been so: the US electricity price has remained almost unchanged over the same period.
The effect on families is devastating. Had prices stayed at 2003 levels, an average family-of-four would now be spending CAD$3,380 on electricity—which includes indirect industry costs. Instead, it now pays $9,740 per year.
Rising electricity costs make investment less attractive: European businesses pay triple US electricity costs, and nearly two-thirds of European companies say energy prices are now a major impediment to investment.
The Paris Treaty approach is fundamentally flawed. Carbon emissions continue to grow because cheap, reliable power, mostly from fossil fuels, drives economic growth. Wealthy countries like Canada, the US, and European Union members have started to cut emissions—often by shifting production elsewhere—but the rest of the world remains focused on eradicating poverty.
Poor countries will rightly reject making carbon cuts unless there is a huge flow of “climate aid” from rich nations, and want trillions of US dollars per year. That won’t happen. The new US government will not pay, and the other rich countries cannot foot the bill alone.
Without these huge transfers of wealth, China, India and many other developing countries will disavow expensive climate policies, too. This potentially leaves a rag-tag group led by a few Western European progressive nations, which can scarcely afford their own policies and have no ability to pay off everyone else.
When the United States withdrew from the Paris Agreement in 2017, Canada’s doubling down on the Paris Treaty sent the signal that it would be worthwhile spending hundreds of trillions of dollars to make no real difference to temperatures. We fool ourselves if we pretend that doing so for a second time will help the planet.
We need to realize that fixing climate change isn’t about sanctimonious summits, lofty speeches, and bluster. In coming weeks I’ll outline the case for efficient policies like innovation, adaptation and prosperity.
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