Business
Federal budget fails to ‘break the glass’ on Canada’s economic growth crisis
From the Fraser Institute
By Grady Munro and Jake Fuss
“You’ve seen those signs that say, ‘In emergency, break glass.’ Well, it’s time to break the glass,” said Carolyn Rogers, Bank of Canada senior deputy governor, in a speech last month while warning that Canadians may see living standards fall if nothing is done to promote economic growth.
In advance of the Trudeau government’s 2024 budget released on Tuesday, many called for the government to finally address Canada’s stagnant economic growth. But despite the growing consensus that this issue represents a national crisis, the Trudeau government simply continued with the same approach that helped get us to this point in the first place.
“You’ve seen those signs that say, ‘In emergency, break glass.’ Well, it’s time to break the glass,” said Carolyn Rogers, Bank of Canada senior deputy governor, in a speech last month while warning that Canadians may see living standards fall if nothing is done to promote economic growth.
Ten days later in a joint interview, former Quebec premier Jean Charest and former federal finance minister Bill Morneau urged the Trudeau government to focus on economic growth in the budget. Specifically, Morneau suggested Canada needs more business investment “from other sources than the government.”
These are just two examples of the growing consensus that Canada is suffering an economic and productivity growth crisis.
Economic growth generally refers to the increase in gross domestic product (GDP), which measures the total output of the economy and is driven by three factors—the labour supply, the capital stock and the efficiency in which labour and capital are used.
Canada’s GDP growth in recent years has been driven almost entirely by the labour supply, as the country has experienced historically high population growth. However, although GDP in aggregate has been growing, GDP per person (a common indicator of living standards) has been declining at an alarming rate. Since the second quarter of 2022 (when it peaked post-COVID), inflation-adjusted GDP per person has fallen from $60,178 to $58,111 in the fourth quarter of 2023—and has declined during five of those six quarters, and now sits below where it was at the end of 2014.
Labour productivity, which is the amount of output (GDP) produced per hour worked, has seen a similar decline. Statistics Canada recently reported that the fourth quarter of 2023 represented the first time productivity increased since the beginning of 2022, and that for the prior six quarters labour productivity had declined or remained stagnant.
The consequence of both declining GDP per person and lower productivity, as Carolyn Rogers warned, is a lower standard of living for Canadians. To reverse this crisis, the Trudeau government must address the cause of Canada’s weak economic growth—a severe lack of business investment.
Business investment provides the capital needed to equip workers with the technology and equipment to become more efficient and productive. Yet according to a recent study, from 2014 to 2021, inflation-adjusted business investment per worker in Canada fell from $18,363 to $14,687.
This decline in business investment is partly the result of the Trudeau government’s disinterest in encouraging entrepreneurship and private-sector business investment. Indeed, the government’s approach of high spending, more regulation and significant involvement in the economy has done little to foster widespread economic growth.
And by raising capital gains taxes on individuals and businesses, which the Trudeau government did in this latest budget, in the words of former Bank of Canada governor David Dodge, the government is doing “exactly the wrong thing” to boost productivity. Rather, these measures simply provide more reason for people and businesses to invest elsewhere.
This latest Trudeau budget doubles down on a failed approach. Spending is up, government involvement in the economy is increasing, and increased capital gains taxes will only make our investment challenges more difficult. We need a complete reversal in policy to solve our economic growth crisis.
Authors:
Business
Some Of The Wackiest Things Featured In Rand Paul’s New Report Alleging $1,639,135,969,608 In Gov’t Waste

From the Daily Caller News Foundation
Republican Kentucky Sen. Rand Paul released the latest edition of his annual “Festivus” report Tuesday detailing over $1 trillion in alleged wasteful spending in the U.S. government throughout 2025.
The newly released report found an estimated $1,639,135,969,608 total in government waste over the past year. Paul, a prominent fiscal hawk who serves as the chairman of the Senate Homeland Security and Governmental Affairs Committee, said in a statement that “no matter how much taxpayer money Washington burns through, politicians can’t help but demand more.”
“Fiscal responsibility may not be the most crowded road, but it’s one I’ve walked year after year — and this holiday season will be no different,” Paul continued. “So, before we get to the Feats of Strength, it’s time for my Airing of (Spending) Grievances.”
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The 2025 “Festivus” report highlighted a spate of instances of wasteful spending from the federal government, including the Department of Health and Human Services (HHS) spent $1.5 million on an “innovative multilevel strategy” to reduce drug use in “Latinx” communities through celebrity influencer campaigns, and also dished out $1.9 million on a “hybrid mobile phone family intervention” aiming to reduce childhood obesity among Latino families living in Los Angeles County.
The report also mentions that HHS spent more than $40 million on influencers to promote getting vaccinated against COVID-19 for racial and ethnic minority groups.
The State Department doled out $244,252 to Stand for Peace in Islamabad to produce a television cartoon series that teaches children in Pakistan how to combat climate change and also spent $1.5 million to promote American films, television shows and video games abroad, according to the report.
The Department of Veterans Affairs (VA) spent more than $1,079,360 teaching teenage ferrets to binge drink alcohol this year, according to Paul’s report.
The report found that the National Science Foundation (NSF) shelled out $497,200 on a “Video Game Challenge” for kids. The NSF and other federal agencies also paid $14,643,280 to make monkeys play a video game in the style of the “Price Is Right,” the report states.
Paul’s 2024 “Festivus” report similarly featured several instances of wasteful federal government spending, such as a Las Vegas pickleball complex and a cabaret show on ice.
The Trump administration has been attempting to uproot wasteful government spending and reduce the federal workforce this year. The administration’s cuts have shrunk the federal workforce to the smallest level in more than a decade, according to recent economic data.
Festivus is a humorous holiday observed annually on Dec. 23, dating back to a popular 1997 episode of the sitcom “Seinfeld.” Observance of the holiday notably includes an “airing of grievances,” per the “Seinfeld” episode of its origin.
Alberta
A Christmas wish list for health-care reform
From the Fraser Institute
By Nadeem Esmail and Mackenzie Moir
It’s an exciting time in Canadian health-care policy. But even the slew of new reforms in Alberta only go part of the way to using all the policy tools employed by high performing universal health-care systems.
For 2026, for the sake of Canadian patients, let’s hope Alberta stays the path on changes to how hospitals are paid and allowing some private purchases of health care, and that other provinces start to catch up.
While Alberta’s new reforms were welcome news this year, it’s clear Canada’s health-care system continued to struggle. Canadians were reminded by our annual comparison of health care systems that they pay for one of the developed world’s most expensive universal health-care systems, yet have some of the fewest physicians and hospital beds, while waiting in some of the longest queues.
And speaking of queues, wait times across Canada for non-emergency care reached the second-highest level ever measured at 28.6 weeks from general practitioner referral to actual treatment. That’s more than triple the wait of the early 1990s despite decades of government promises and spending commitments. Other work found that at least 23,746 patients died while waiting for care, and nearly 1.3 million Canadians left our overcrowded emergency rooms without being treated.
At least one province has shown a genuine willingness to do something about these problems.
The Smith government in Alberta announced early in the year that it would move towards paying hospitals per-patient treated as opposed to a fixed annual budget, a policy approach that Quebec has been working on for years. Albertans will also soon be able purchase, at least in a limited way, some diagnostic and surgical services for themselves, which is again already possible in Quebec. Alberta has also gone a step further by allowing physicians to work in both public and private settings.
While controversial in Canada, these approaches simply mirror what is being done in all of the developed world’s top-performing universal health-care systems. Australia, the Netherlands, Germany and Switzerland all pay their hospitals per patient treated, and allow patients the opportunity to purchase care privately if they wish. They all also have better and faster universally accessible health care than Canada’s provinces provide, while spending a little more (Switzerland) or less (Australia, Germany, the Netherlands) than we do.
While these reforms are clearly a step in the right direction, there’s more to be done.
Even if we include Alberta’s reforms, these countries still do some very important things differently.
Critically, all of these countries expect patients to pay a small amount for their universally accessible services. The reasoning is straightforward: we all spend our own money more carefully than we spend someone else’s, and patients will make more informed decisions about when and where it’s best to access the health-care system when they have to pay a little out of pocket.
The evidence around this policy is clear—with appropriate safeguards to protect the very ill and exemptions for lower-income and other vulnerable populations, the demand for outpatient healthcare services falls, reducing delays and freeing up resources for others.
Charging patients even small amounts for care would of course violate the Canada Health Act, but it would also emulate the approach of 100 per cent of the developed world’s top-performing health-care systems. In this case, violating outdated federal policy means better universal health care for Canadians.
These top-performing countries also see the private sector and innovative entrepreneurs as partners in delivering universal health care. A relationship that is far different from the limited individual contracts some provinces have with private clinics and surgical centres to provide care in Canada. In these other countries, even full-service hospitals are operated by private providers. Importantly, partnering with innovative private providers, even hospitals, to deliver universal health care does not violate the Canada Health Act.
So, while Alberta has made strides this past year moving towards the well-established higher performance policy approach followed elsewhere, the Smith government remains at least a couple steps short of truly adopting a more Australian or European approach for health care. And other provinces have yet to even get to where Alberta will soon be.
Let’s hope in 2026 that Alberta keeps moving towards a truly world class universal health-care experience for patients, and that the other provinces catch up.
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