Business
When politicians gamble, taxpayers lose
From the Canadian Taxpayers Federation
Author: Jay Goldberg
Trudeau and Ford bragged about how a $5 billion giveaway to Honda is going to generate 1,000 jobs. In case you’re thinking of doing the math, that’s $5 million per job.
Politicians are rolling the dice on the electric vehicle industry with your money.
If they bet wrong, and there’s a good chance they have, hardworking Canadians will be left holding the bag.
Prime Minister Justin Trudeau and Premier Doug Ford announced a $5-billion agreement with Honda, giving another Fortune 500 automaker a huge wad of taxpayer cash.
Then Trudeau released a video on social media bragging about “betting big” on the electric vehicle industry in Canada. The “betting” part of Trudeau’s statement tells you everything you need to know about why this is a big mistake.
Governments should never “bet” with taxpayer money. That’s the reality of corporate welfare: when governments give taxpayer money to corporations with few strings attached, everyday Canadians are left hoping and praying that politicians put the chips on the right numbers.
And these are huge bets.
When Trudeau and Ford announced this latest giveaway to Honda, the amount of taxpayer cash promised to the electric vehicle sector reached $57 billion. That’s more than the federal government plans to spend on health care this year.
Governments should never gamble with taxpayer money and there are at least three key reasons why this Honda deal is a mistake.
First, governments haven’t even proven themselves capable of tracking how many jobs are created through their corporate welfare schemes.
Trudeau and Ford bragged about how a $5 billion giveaway to Honda is going to generate 1,000 jobs. In case you’re thinking of doing the math, that’s $5 million per job.
Five million dollars per job is already outrageous. But some recent reporting from the Globe and Mail shows why corporate welfare in general is a terrible idea.
The feds don’t even have a proper mechanism for verifying if jobs are actually created after handing corporations buckets of taxpayer cash. So, while 1,000 jobs are promised through the Honda deal, the government isn’t capable of confirming whether those measly 1,000 jobs will materialize.
Second, betting on the electric vehicle industry comes with risk.
Trudeau and Ford gave the Ford Motor Company nearly $600 million to retool a plant in Oakville to build electric cars instead of gasoline powered ones back in 2020. But just weeks ago, Ford announced plans to delay the conversion for another three years, citing slumping electric vehicle sales.
Look into Ford’s quarterly reports and the danger of betting on electric vehicles becomes clear as day: Ford’s EV branch lost $1.3 billion in the first quarter of 2024. Reports also show Ford lost $130,000 on every electric vehicle sold.
The decline of electric vehicle demand isn’t limited to Ford. In the United States, electric vehicle sales fell by 7.3 per cent between the last quarter of 2023 and the first quarter of 2024.
Even Tesla’s sales were down 13 per cent in the first quarter of this year compared to the first quarter of 2023.
A Bloomberg headline from early April read “Tesla’s sales miss by the most ever in brutal blow for EVs.”
There’s certainly a risk in betting on electric vehicles right now.
Third, there’s the question of opportunity cost. Imagine what else our governments could be doing with $57 billion?
For about the same amount of money, the federal government could suspend the federal sales tax for an entire year. The feds could also use $57 billion to double health-care spending or build 57 new hospitals.
The solution for creating jobs isn’t to hand a select few companies buckets of cash just to lure them to Canada. Politicians should be focusing on creating the right environment for any company, large or small, to grow without a government handout.
To do that, Canada must be more competitive with lower business taxes, less red tape and more affordable energy. That’s a real recipe for success that doesn’t involve gambling with taxpayer cash.
It’s time for our politicians to kick their corporate welfare addiction. Until they do, Canadians will be left paying the price.
From the Daily Caller News Foundation
A resurfaced 2018 video from a Minneapolis-area TV station shows how Somali scammers allegedly bilked Minnesota out of millions of dollars for services that they never provided.
Independent journalist Nick Shirley touched off a storm on social media Friday after he posted a photo of one day-care center, which displayed a banner calling it “The Greater Learing Center” on X, along with a 42-minute video that went viral showing him visiting that and other day-care centers. The surveillance video, which aired on Fox 9 in 2018 after being taken in 2015, showed parents taking kids into the center, then leaving with them minutes later, according to Fox News.
“They were billing too much, they went up to high,” Hennepin County attorney Mike Freeman told Fox 9 in 2018. “It’s hard to imagine they were serving that many people. Frankly if you’re going to cheat, cheat little, because if you cheat big, you’re going to get caught.”
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Democratic Gov. Tim Walz of Minnesota was accused of engaging in “systemic” retaliation against whistleblowers in a Nov. 30 statement by state employees. Assistant United States Attorney Joe Thompson announced on Dec. 18 that the amount of suspected fraud in Minnesota’s Medicaid program had reached over $9 billion.
After Shirley’s video went viral, FBI Director Kash Patel announced the agency was already sending additional resources in a Sunday post on X, citing the case surrounding Feeding Our Future, which at one point accused the Minnesota government of racism during litigation over the suspension of funds after earlier allegations of fraud.
KSTP reported that the Quality Learning Center, one of the centers visited by Shirley, had 95 citations for violations from one Minnesota agency between 2019 to 2023.
President Donald Trump announced in a Nov. 21 post on Truth Social that he would end “Temporary Protected Status” for Somalis in the state in response to allegations of welfare fraud and said that the influx of refugees had “destroyed our country.”
Business
Disclosures reveal Minnesota politician’s husband’s companies surged thousands-fold amid Somali fraud crisis
Rep. Ilhan Omar’s latest financial disclosures reveal seemingly sudden wealth accumulation inside her household, even as Minnesota grapples with revelations of massive fraud that may have siphoned more than $9 billion from government programs. The numbers, drawn from publicly filed congressional reports, show two companies tied to Omar’s husband, Tim Mynett, surging in value at a pace that raises more questions than answers.
According to the filings, Rose Lake Capital LLC — a business advisory firm Mynett co-founded in 2022 — jumped from an assessed range of $1 to $1,000 in 2023 to between $5 million and $25 million in 2024. Even using the most conservative assumptions allowed under Congress’ broad valuation ranges, the company’s value would have increased thousands of times in a single year. The firm advertises itself as a facilitator of “deal-making, mergers and acquisitions, banking, politics and diplomacy.”
Archived versions of Rose Lake’s website once showcased an eye-catching lineup of political heavyweights: former Ambassador to Bahrain Adam Ereli, former Sen. Max Baucus, and prominent Democratic National Committee alumni William Derrough and Alex Hoffman. But as scrutiny surrounding Omar intensifies — particularly over whether her political network intersected with sprawling fraud schemes exposed in Minnesota — the company has quietly scrubbed its online footprint. Names and biographies of team members have vanished, and the firm has not clarified whether these figures remain involved. Omar’s office offered no comment when asked to explain the company’s sudden growth or the removal of its personnel listings.
Mynett, Omar’s third husband, has long been a controversial presence in her political orbit, but the dramatic swell in his business holdings comes at a moment when trust in Minnesota’s oversight systems is already badly shaken. Federal and state investigators now estimate that fraud involving pandemic-era and nonprofit programs may exceed $9 billion, a staggering figure for a state often held up as a model of progressive governance. For many residents, the revelation that Omar’s household wealth soared during the same period only deepens skepticism about who benefited from Minnesota’s expansive social-spending apparatus.
The financial story doesn’t stop with Rose Lake. A second Mynett-linked entity, ESTCRU LLC — a boutique winery registered in Santa Rosa, California — reported an assessed value of $1 million to $5 million in 2024. Just a year earlier, Omar disclosed its worth at $15,000 to $50,000. Despite the dramatic valuation spike, ESTCRU’s online storefront does not appear to function, its last social media activity dates back to early 2023, and the phone number listed on its website is no longer in service. As with Rose Lake, Omar’s office declined to comment on the winery’s sudden rise in reported value.
The House clerk has yet to release 2025 disclosures, leaving unanswered how these companies are performing today — and how such explosive growth materialized in the first place.
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