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Canada’s Financial Freefall: When Rosy Rhetoric Meets Hard Reality

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This article is from The Opposition With Dan Knight substack.  

The Trudeau Government’s Economic Alchemy: Turning Gold Hopes Into Lead Numbers

Good morning, my fellow Canadians. It’s September 3, 2023, and if you’re expecting to wake up to a bright, financially secure Canada, well, I have some sobering news for you. The latest figures from Statistics Canada are in, and they confirm what many of us have suspected: the Canadian economy is not on the up-and-up. Despite the rosy pictures painted by Prime Minister Justin Trudeau and Finance Minster Chrystia Freeland, the real numbers don’t lie, and they point to an economic landscape in turmoil. Allow me to break it down for you.

The new Statistics Canada data is in, and it paints a rather bleak picture of the Canadian economy under the watchful eyes of the federal government and Justin Trudeau. Let’s delve into some numbers, shall we? A staggering $16.5 billion in debt was added by Canadian households in the first quarter of this year alone, with $11.2 billion being in mortgage debt. In an environment of 5% interest rates, a rate we haven’t seen for over a decade, this is a financial bomb waiting to explode.

And let’s not forget inflation. Since 2021, we’ve seen a cumulative inflation rate of around 16.5%. Now, remember, these aren’t just abstract numbers on a ledger somewhere; these are realities hitting your grocery bills, your gas prices, your rents, and slowly emptying your wallets. But it’s not just households feeling the pinch. The economy as a whole is stalling, with real GDP nearly unchanged in the second quarter of 2023, following a measly 0.6% rise in the first quarter.

Amidst all this, Justin Trudeau and the federal government seem content piling on debt like there’s no tomorrow. The Parliamentary Budget Officer’s March 2023 report shows Canada’s deficit is expected to rise to $43.1 billion in 2023-24, up from $36.5 billion in 2022-23. And let’s not forget that 1 out of every 5 dollars in this debt spree didn’t even exist pre-pandemic. Essentially, we’re spending money we don’t have, to solve problems we’re not solving, all while making new ones.

So, where has all this spending gone? Not into securing a robust future for Canadians, I can tell you that. Despite the monumental deficits and the reckless spending, housing investment fell 2.1% in the second quarter,marking its fifth consecutive quarterly decrease. Canadians are struggling to make ends meet, and the government’s financial imprudence is exacerbating, not alleviating, the situation.

But here’s a twist to the story: while investments in housing decline, Justin Trudeau decided it was prime time to open the floodgates of immigration. There’s an aspect of governance called planning, something that seems foreign to this administration. How does one justify allowing over a million immigrants into Canada without even hinting at a solution for housing them? The result is basic economics – demand outstrips supply, and prices soar.

Remember the days before Trudeau’s reign, when the average home in Canada cost around $400,000? Eight years under his watch and that figure has doubled. Trudeau’s policies seem like a cruel jest to young families, professionals, and, frankly, anyone aspiring to own a piece of the Canadian dream. It’s almost as if he expected the housing market to “balance itself”.

And before you think this is just a ‘rough patch,’ let me remind you that household spending is also slowing. So not only are Canadians going into debt, but they’re also cutting back on spending. They’re being hit from both sides, and there’s no end in sight. The government’s promises of prosperity seem increasingly hollow when we see that per capita household spending has declined in three of the last four quarters.

The Trudeau administration’s approach to governing appears to be in a parallel universe, one where debt is limitless, and financial responsibilities are for the next government or even the next generation to sort out. And don’t even get me started on the higher taxes lurking around the corner to pay off this bonanza of spending. This isn’t governance; it’s financial negligence.

When Canadians were told that this level of inflationary spending could turn our country into something akin to Venezuela, many scoffed at the idea. But let’s face it: the signs are becoming hard to ignore. The truth is, many Canadians have been led to believe they can have gold-plated social services without paying an ounce of gold in taxes. Prime Minister Justin Trudeau seemed more than happy to sell that narrative. He promised a utopia, a social safety net woven from dreams and aspirations. But what has that net caught? Rising costs, crippling debt, and a harder life for everyday Canadians.

Trudeau has turned out to be less a responsible steward of the economy and more of a Pied Piper, leading us all off a fiscal cliff while playing a cheerful tune. Or perhaps he’s more like the Cheshire Cat from “Alice in Wonderland,” grinning broadly as he disappears, leaving behind only his grin and a trail of false promises.

As we approach the pivotal year of 2025, don’t forget who sold you this bill of goods. Remember the skyrocketing costs of living, the unmanageable debt, and the empty words that were supposed to make everything better. I, for one, certainly won’t forget. And I suspect, come election time, neither will you.

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Frontier Centre for Public Policy

The PM as Leaf’s coach

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From the Frontier Centre for Public Policy

By Lee Harding

The budget had a $7.5 billion surplus when the Trudeau Liberals were sworn into power on November 4, 2016 and they turned it into a $5.4 billion deficit by the end of March.

The meme where Prime Minister Justin Trudeau becomes the new coach of the Toronto Maple Leafs, who lost in the NHL playoffs to Boston May 4th, has far more depth than people realize.

Previous head coach Sheldon Keefe was fired, leaving a prime job open.

“With my unique coaching style, the cup will win itself,” was Trudeau’s quote in the meme, his fictional words matched by a fake picture of him in a Leafs jacket.

The woes of both Canada and the Maple Leafs involve leadership and economics.

In the Leafs’ case, the players salary cap is $83.5 million. Last year, the team paid four players $11 million each, leaving fiscal scraps for the other 16 players.

Prior to becoming prime minister, Trudeau was asked how committed he would be to a balanced budget.

“The commitment needs to be a commitment to grow the economy, and the budget will balance itself,” Trudeau said, on February 11, 2014, as he criticized the Harper government approach.

“They’re artificially fixing a target of a balanced budget in an election year,” Trudeau explained.

“And that’s irresponsible. What you need to do is create an economy that works for Canadians, works for middle class Canadians, allows young people to find a job, allows seniors to feel secure in their retirement.”

Trudeau pledged to run modest deficits and a return to balance in the final year of his majority term, which, ironically, was what he condemned Conservatives of doing in the interview. We are still waiting for that balanced budget, of course.

The budget had a $7.5 billion surplus when the Trudeau Liberals were sworn into power on November 4, 2016 and they turned it into a $5.4 billion deficit by the end of March.

Prior to taking power, Trudeau argued that historically low interest rates were a good reason to borrow and spend on nation-building infrastructure. If the debt-to-GDP ratio kept dropping, good enough.

That excuse of low interest rates is gone, yet the deficits remain. When this fiscal year ends next March, the federal debt will be double what it was when the Trudeau Liberals took power. Deep deficits and higher lending rates have made debt servicing costs nearly double in the past two years alone.

Among the 38 nations in the Organization for Economic Co-Operation and Development, Canada’s growth in real GDP per capita was the fifth-weakest over 2019-22. Last November, Canada was named as one of only eight advanced countries where real incomes were lower than before the pandemic, as inflation outpaces growth.

Worse, the OECD projects Canada will be the worst performing economy among the 38 advanced economies over both 2020-30 and 2030-60.

Even before capital gains taxes were hiked in the recent budget, investors knew Canada wasn’t a good place to grow wealth. The country lost $225 billion in capital investment from 2016 through 2022.

Whether it’s a winning team or a winning economy, ignoring financial realities steals success.

Trudeau’s economic plan has relied on a burgeoning, high-paid public sector, almost limitless immigration, carbon taxes, and green spending. He has put all the money on the wrong players.

Canada was altogether different in 1967, the last time the Leafs won a cup. Since then, the first and second prime ministers Trudeau have eroded this country’s social and fiscal moorings, leaving us conflicted and financially burdened instead of celebrating our success.

So, when will Canada get a new coach?

Lee Harding is a Research Fellow for the Frontier Centre for Public Policy.

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Brownstone Institute

The WHO’s Proposed Pandemic Agreements Worsen Public Health

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From the Brownstone Institute

BY David BellDAVID BELL

The WHO decided that the response for a Toronto aged care resident and a young mother in a Malawian village should be essentially the same – stop them from meeting family and working, then inject them with the same patented chemicals.

Much has been written on the current proposals putting the World Health Organization (WHO) front and center of future pandemic responses. With billions of dollars in careers, salaries, and research funding on the table, it is difficult for many to be objective. However, there are fundamentals here that everyone with public health training should agree upon. Most others, if they take time to consider, would also agree. Including, when divorced from party politicking and soundbites, most politicians.

So here, from an orthodox public health standpoint, are some problems with the proposals on pandemics to be voted on at the World Health Assembly at the end of this month.

Unfounded Messaging on Urgency

The Pandemic Agreement (treaty) and IHR amendments have been promoted based on claims of a rapidly increasing risk of pandemics. In fact, they pose an ‘existential threat’ (i.e. one that may end our existence) according to the G20’s High Level Independent Panel in 2022. However, the increase in reported natural outbreaks on which the WHO, the World Bank, G20, and others based these claims is shown to be unfounded in a recent analysis from the UK’s University of Leeds. The main database on which most outbreak analyses rely, the GIDEON database, shows a reduction in natural outbreaks and resultant mortality over the past 10 to 15 years, with the prior increase between 1960 and 2000 fully consistent with the development of the technologies necessary to detect and record such outbreaks; PCR, antigen and serology tests, and genetic sequencing.

The WHO does not refute this but simply ignores it. Nipah viruses, for example, only ‘emerged’ in the late 1990s when we found ways to actually detect them. Now we can readily distinguish new variants of coronavirus to promote uptake of pharmaceuticals. The risk does not change by detecting them; we just change the ability to notice them. We also have the ability to modify viruses to make them worse – this is a relatively new problem. But do we really want an organization influenced by China, with North Korea on its executive board (insert your favorite geopolitical rivals), to manage a future bioweapons emergency?

Irrespective of growing evidence that Covid-19 was not a natural phenomenon, modelling that the World Bank quotes as suggesting a 3x increase in outbreaks over the next decade actually predicts that a Covid-like event will recur less than once per century. Diseases that the WHO uses to suggest an increase in outbreaks over the past 20 years, including cholera, plague, yellow fever, and influenza variants were orders of magnitude worse in past centuries.

This all makes it doubly confusing that the WHO is breaking its own legal requirements in order to push through a vote without Member States having time to properly review implications of the proposals. The urgency must be for reasons other than public health need. Others can speculate why, but we are all human and all have egos to protect, even when preparing legally binding international agreements.

Low Relative Burden

The burden (e.g. death rate or life years lost) of acute outbreaks is a fraction of the overall disease burden, far lower than many endemic infectious diseases such as malaria, HIV, and tuberculosis, and a rising burden of non-communicable disease. Few natural outbreaks over the past 20 years have resulted in more than 1,000 deaths – or 8 hours of tuberculosis mortality. Higher-burden diseases should dominate public health priorities, however dull or unprofitable they may seem.

With the development of modern antibiotics, major outbreaks from the big scourges of the past like Plague and typhus ceased to occur. Though influenza is caused by a virus, most deaths are also due to secondary bacterial infections. Hence, we have not seen a repeat of the Spanish flu in over a century. We are better at healthcare than we used to be and have improved nutrition (generally) and sanitation. Widespread travel has eliminated the risks of large immunologically naive populations, making our species more immunologically resilient. Cancer and heart disease may be increasing, but infectious diseases overall are declining. So where should we focus?

Lack of Evidence Base

Investment in public health requires both evidence (or high likelihood) that the investment will improve outcomes and an absence of significant harm. The WHO has demonstrated neither with their proposed interventions. Neither has anyone else. The lockdown and mass vaccination strategy promoted for Covid-19 resulted in a disease that predominantly affects elderly sick people leading to 15 million excess deaths, even increasing mortality in young adults. In past acute respiratory outbreaks, things got better after one or perhaps two seasons, but with Covid-19 excess mortality persisted.

Within public health, this would normally mean we check whether the response caused the problem. Especially if it’s a new type of response, and if past understanding of disease management predicted that it would. This is more reliable than pretending that past knowledge did not exist. So again, the WHO (and other public-private partnerships) are not following orthodox public health, but something quite different.

Centralization for a Highly Heterogeneous Problem

Twenty-five years ago, before private investors became so interested in public health, it was accepted that decentralization was sensible. Providing local control to communities that could then prioritize and tailor health interventions themselves can provide better outcomes. Covid-19 underlined the importance of this, showing how uneven the impact of an outbreak is, determined by population age, density, health status, and many other factors. To paraphrase the WHO, ‘Most people are safe, even when some are not.’

However, for reasons that remain unclear to many, the WHO decided that the response for a Toronto aged care resident and a young mother in a Malawian village should be essentially the same – stop them from meeting family and working, then inject them with the same patented chemicals. The WHO’s private sponsors, and even the two largest donor countries with their strong pharmaceutical sectors, agreed with this approach. So too did the people paid to implement it. It was really only history, common sense, and public health ethics that stood in the way, and they proved much more malleable.

Absence of Prevention Strategies Through Host Resilience

The WHO IHR amendments and Pandemic Agreement are all about detection, lockdowns, and mass vaccination. This would be good if we had nothing else. Fortunately, we do. Sanitation, better nutrition, antibiotics, and better housing halted the great scourges of the past. An article in the journal Nature in 2023 suggested that just getting vitamin D at the right level may have cut Covid-19 mortality by a third. We already knew this and can speculate on why it became controversial. It’s really basic immunology.

Nonetheless, nowhere within the proposed US$30+ billion annual budget is any genuine community and individual resilience supported. Imagine putting a few billion more into nutrition and sanitation. Not only would you dramatically reduce mortality from occasional outbreaks, but more common infectious diseases, and metabolic diseases such as diabetes and obesity, would also go down. This would actually reduce the need for pharmaceuticals. Imagine a pharmaceutical company, or investor, promoting that. It would be great for public health, but a suicidal business approach.

Conflicts of Interest

All of which brings us, obviously, to conflicts of interest. The WHO, when formed, was essentially funded by countries through a core budget, to address high-burden diseases on country request. Now, with 80% of its use of funds specified directly by the funder, its approach is different. If that Malawian village could stump up tens of millions for a program, they would get what they ask for. But they don’t have that money; Western countries, Pharma, and software moguls do.

Most people on earth would grasp that concept far better than a public health workforce heavily incentivized to think otherwise. This is why the World Health Assembly exists and has the ability to steer the WHO in directions that don’t harm their populations. In its former incarnation, the WHO considered conflict of interest to be a bad thing. Now, it works with its private and corporate sponsors, within the limits set by its Member States, to mold the world to their liking.

The Question Before Member States

To summarize, while it’s sensible to prepare for outbreaks and pandemics, it’s even more sensible to improve health. This involves directing resources to where the problems are and using them in a way that does more good than harm. When people’s salaries and careers become dependent on changing reality, reality gets warped. The new pandemic proposals are very warped. They are a business strategy, not a public health strategy. It is the business of wealth concentration and colonialism – as old as humanity itself.

The only real question is whether the majority of the Member States of the World Health Assembly, in their voting later this month, wish to promote a lucrative but rather amoral business strategy, or the interests of their people.

Author

  • David Bell

    David Bell, Senior Scholar at Brownstone Institute, is a public health physician and biotech consultant in global health. He is a former medical officer and scientist at the World Health Organization (WHO), Programme Head for malaria and febrile diseases at the Foundation for Innovative New Diagnostics (FIND) in Geneva, Switzerland, and Director of Global Health Technologies at Intellectual Ventures Global Good Fund in Bellevue, WA, USA.

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