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24 facts for 2024—Canadians should understand impact of government policies

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8 minute read

From the Fraser Institute

By Niels Veldhuis

With a better understanding of the impact of government policies, Canadians will be better able to hold politicians accountable and make informed decisions at the ballot box. With the calendar now turned to 2024, here are 24 facts for Canadians to consider.

Canada’s Economic Crisis

  1. Average per-person incomes in Canada have stagnated from 2016 ($54,154) to 2022 ($55,863). Meanwhile, the United States has seen an increase from $65,792 to $73,565. The average Canadian now earns $17,700 less annually than the average American.
  2. Canada ranks just below Louisiana ($57,954) in average per-person income and slightly ahead Kentucky ($54,671). Is this the company we want to keep?
  3. According to the Organisation for Economic Co-operation and Development, Canada will be the worst-performing advanced economy from 2020 to 2030 and from 2030 to 2060.
  4. Canada’s economic growth crisis is due in large part to the decline in business investment. Business investment per worker in Canada declined by 20 per cent since 2014, from $18,363 to $14,687.
  5. In 2014, Canada invested about 79 cents per worker for every dollar invested in the United States—in 2021, investment was 55 cents for every U.S. dollar.
  6. We’ve witnessed a massive flight of capital from Canada since 2014, to the tune of more than $285 billion.
  7. From the onset of the COVID recession in February 2020 to June 2023, the number of government jobs across the country increased by 11.8 per cent compared to only 3.3 per cent in the private sector (including the self-employed).

Fiscal Crisis: Imprudent Spending and Massive Deficits

  1. The Trudeau government has increased annual spending (not including interest payments on its debt) by nearly 75 per cent since 2014, from $256 billion in 2014-15 to a projected $453 billion in 2023-24.
  2. With federal spending at nearly $11,500 per Canadian, the Trudeau government is on track to record the five highest levels of per-person spending in Canadian history.
  3. A large portion of government spending in Canada goes to pay for the 4.1 million federal, provincial and local government employees. Government employees across Canada—including federal, provincial and municipal workers—are paid 31.3 per cent higher wages (on average) than workers in the private sector. Even after adjusting for differences (education, tenure, type of work, occupation, etc.) government employees are still paid 8.5 per cent higher wages.
  4. The Trudeau government has used large increases in borrowing and tax increases to finance this spending. Federal debt has ballooned to $1.9 trillion (2022-23) will reach a projected $2.4 trillion by 2027/28.
  5. Combined federal and provincial debt in Canada has nearly doubled from $1.18 trillion in 2007/08 (the year before the last recession) to a projected $2.18 trillion this year.Infographic 1

Tax Increases and Canada’s Affordability Crisis

  1. To pay for all this spending, the total tax bill for the average Canadian family was $48,199 or 45.3 per cent per cent of its income—more than what the average family spends on housing, food and clothing combined.Infographic 2
  2. Housing and grocery costs dominated the news last year but in 2022 the average family spent $1,452 more on housing and $996 more on food while governments extracted an extra $4,566 from the average family in taxes.
  3. While the federal government has claimed it “cut taxes for middle-class Canadians everywhere,” in reality 86 per cent of middle-class families in Canada are paying higher income taxes under the government’s personal income tax changes. And that doesn’t account for carbon taxes, etc.
  4. More than 60 per cent of lower-income families (those in the bottom 20 per cent of earners) in Canada now pay higher federal income taxes because of the federal government’s tax changes.
  5. Seventy-four per cent of Canadians surveyed believe the average family is being overtaxed by the federal, provincial and local governments.

Damaging Energy and Environment Policy

  1. In the federal government, there’s a common belief that the Canadian economy is undergoing a fundamental and rapid transition towards “clean/green” industries. Yet despite massive regulations and subsidies, Statistics Canada data shows that Canada’s “green” economy amounts to only about 3 per cent of gross domestic product (GDP) and directly employs roughly 1.6 per cent of all jobs.
  2. The recent United Nations climate change conference pushed for a “transition away from fossil fuels.” Despite significant spending on “clean energy”, from 1995 to 2022, the amount of fossil fuels (oil, gas and coal) consumed worldwide actually increased by nearly 59 per cent.
  3. Canada has an opportunity to serve the world with its energy and resources and, in doing so, benefit our allies and improve both world energy security and the environment. But the federal government doesn’t see it that way. How else could one explain the latest singling out of Canada’s oil and gas sector through an arbitrary cap on greenhouse gas emissions, even though the sector only represents 26 per cent of Canada’s total GHG emissions? Even if Canada eliminated all greenhouse gas emissions expected from the oil and gas sector in 2030, the reduction would equal only 0.004 per cent of global emissions while imposing huge costs.Infographic 3
  4. As a result of new federal energy efficiency regulations, the cost of a newly constructed home in Canada will increase by $55,000, on average, by 2030 because of the federal government’s stricter energy efficiency regulations for buildings. Rather than increasing the costs of new homes, governments should help close the gap between supply and demand.

Our Failing Health-Care System

  1. How good is our health-care system? Canada’s average health-care wait times hit 27.7 weeks in 2023—the longest ever recorded and nearly 200 per cent longer than the 9.3 weeks in 1993 when the Fraser Institute began tracking wait times.
  2. Among a group of 30 high-income countries that have universally accessible health care, Canada spends the most money on health care as a percentage of GDP.
  3. Despite this high spending, we are a poor performer. Among this group, Canada had the longest wait lists and ranked:
    • 28th (out of 30) for the number of doctors
    • 23rd (out of 29) for the number of hospital beds available
    • 23rd (out of 29) for the number of psychiatric beds available
    • 25th (out of 29) for the number of MRI machines
    • 26th (out of 30) for CT scanners

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Business

Land use will be British Columbia’s biggest issue in 2026

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By Resource Works

Tariffs may fade. The collision between reconciliation, property rights, and investment will not.

British Columbia will talk about Donald Trump’s tariffs in 2026, and it will keep grinding through affordability. But the issue that will decide whether the province can build, invest, and govern is land use.

The warning signs were there in 2024. Land based industries still generate 12 per cent of B.C.’s GDP, and the province controls more than 90 per cent of the land base, and land policy was already being remade through opaque processes, including government to government tables. When rules for access to land feel unsettled, money flows slow into a trickle.

The Cowichan ruling sends shockwaves

In August 2025, the Cowichan ruling turned that unease into a live wire. The court recognized the Cowichan’s Aboriginal title over roughly 800 acres within Richmond, including lands held by governments and unnamed third parties. It found that grants of fee simple and other interests unjustifiably infringed that title, and declared certain Canada and Richmond titles and interests “defective and invalid,” with those invalidity declarations suspended for 18 months to give governments time to make arrangements.

The reaction has been split. Supporters see a reminder that constitutional rights do not evaporate because land changed hands. Critics see a precedent that leaves private owners exposed, especially because unnamed owners in the claim area were not parties to the case and did not receive formal notice. Even the idea of “coexistence” has become contentious, because both Aboriginal title and fee simple convey exclusive rights to decide land use and capture benefits.

Market chill sets in

McLTAikins translated the risk into advice that landowners and lenders can act on: registered ownership is not immune from constitutional scrutiny, and the land title system cannot cure a constitutional defect where Aboriginal title is established. Their explanation of fee simple reads less like theory than a due diligence checklist that now reaches beyond the registry.

By December, the market was answering. National Post columnist Adam Pankratz reported that an industrial landowner within the Cowichan title area lost a lender and a prospective tenant after a $35 million construction loan was pulled. He also described a separate Richmond hotel deal where a buyer withdrew after citing precedent risk, even though the hotel was not within the declared title lands. His case that uncertainty is already changing behaviour is laid out in Montrose.

Caroline Elliott captured how quickly court language moved into daily life after a City Richmond letter warned some owners that their title might be compromised. Whatever one thinks of that wording, it pushed land law out of the courtroom and into the mortgage conversation.

Mining and exploration stall

The same fault line runs through the critical minerals push. A new mineral claims regime now requires consultation before claims are approved, and critics argue it slows early stage exploration and forces prospectors to reveal targets before they can secure rights. Pankratz made that critique earlier, in his argument about mineral staking.

Resource Works, summarising AME feedback on Mineral Tenure Act modernisation, reported that 69.5 per cent of respondents lacked confidence in proposed changes, and that more than three quarters reported increased uncertainty about doing business in B.C. The theme is not anti consultation. It is that process, capacity, and timelines decide whether consultation produces partnership or paralysis.

Layered on top is the widening fight over UNDRIP implementation and DRIPA. Geoffrey Moyse, KC, called for repeal in a Northern Beat essay on DRIPA, arguing that Section 35 already provides the constitutional framework and that trying to operationalise UNDRIP invites litigation and uncertainty.

Tariffs and housing will still dominate headlines. But they are downstream of land. Until B.C. offers a stable bargain over who can do what, where, and on what foundation, every other promise will be hostage to the same uncertainty. For a province still built on land based wealth, Resource Works argues in its institutional history that the resource economy cannot be separated from land rules. In 2026, that is the main stage.

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Dark clouds loom over Canada’s economy in 2026

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From the Fraser Institute

By Jock Finlayson

The dawn of a new year is an opportune time to ponder the recent performance of Canada’s $3.4 trillion economy. And the overall picture is not exactly cheerful.

Since the start of 2025, our principal trading partner has been ruled by a president who seems determined to unravel the post-war global economic and security order that provided a stable and reassuring backdrop for smaller countries such as Canada. Whether the Canada-U.S.-Mexico trade agreement (that President Trump himself pushed for) will even survive is unclear, underscoring the uncertainty that continues to weigh on business investment in Canada.

At the same time, Europe—representing one-fifth of the global economy—remains sluggish, thanks to Russia’s relentless war of choice against Ukraine, high energy costs across much of the region, and the bloc’s waning competitiveness. The huge Chinese economy has also lost a step. None of this is good for Canada.

Yet despite a difficult external environment, Canada’s economy has been surprisingly resilient. Gross domestic product (GDP) is projected to grow by 1.7 per cent (after inflation) this year. The main reason is continued gains in consumer spending, which accounts for more than three-fifths of all economic activity. After stripping out inflation, money spent by Canadians on goods and services is set to climb by 2.2 per cent in 2025, matching last year’s pace. Solid consumer spending has helped offset the impact of dwindling exports, sluggish business investment and—since 2023—lacklustre housing markets.

Another reason why we have avoided a sharper economic downturn is that the Trump administration has, so far, exempted most of Canada’s southbound exports from the president’s tariff barrage. This has partially cushioned the decline in Canada’s exports—particularly outside of the steel, aluminum, lumber and auto sectors, where steep U.S. tariffs are in effect. While exports will be lower in 2025 than the year before, the fall is less dramatic than analysts expected 6 to 8 months ago.

Although Canada’s economy grew in 2025, the job market lost steam. Employment growth has softened and the unemployment rate has ticked higher—it’s on track to average almost 7 per cent this year, up from 5.4 per cent two years ago. Unemployment among young people has skyrocketed. With the economy showing little momentum, employment growth will remain muted next year.

Unfortunately, there’s nothing positive to report on the investment front. Adjusted for inflation, private-sector capital spending has been on a downward trajectory for the last decade—a long-term trend that can’t be explained by Trump’s tariffs. Canada has underperformed both the United States and several other advanced economies in the amount of investment per employee. The investment gap with the U.S. has widened steadily since 2014. This means Canadian workers have fewer and less up-to-date tools, equipment and technology to help them produce goods and services compared to their counterparts in the U.S. (and many other countries). As a result, productivity growth in Canada has been lackluster, narrowing the scope for wage increases.

Preliminary data indicate that both overall non-residential investment and business capital spending on machinery, equipment and advanced technology products will be down again in 2025. Getting clarity on the future of the Canada-U.S. trade relationship will be key to improving the business environment for private-sector investment. Tax and regulatory policy changes that make Canada a more attractive choice for companies looking to invest and grow are also necessary. This is where government policymakers should direct their attention in 2026.

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