From the Fraser Institute

By Kenneth P. Green

Evidence continues to accrue that many of these “investments,” which are ultimately of course taxpayer funded, are risky ventures indeed.

Even as the much-vaunted electric vehicle (EV) transition slams into stiff headwinds, the Trudeau government and Ontario’s Ford government will pour another $5 billion in subsidies into Honda, which plans to build an EV battery plant and manufacture EVs in Ontario.

This comes on top of a long list of other such “investments” including $15 billion for Stellantis and LG Energy Solution, $13 billion for Volkswagen (with a real cost to Ottawa of $16.3 billion, per the Parliamentary Budget Officer), a combined $4.24 billion (federal/Quebec split) to Northvolt, a Swedish battery maker, and a combined $644 million (federal/Quebec split) to Ford Motor Company to build a cathode manufacturing plant in Quebec.

All this government subsidizing is of course meant to help remake the automobile, with the Trudeau government mandating that 100 per cent of new passenger vehicles and light trucks sold in Canada be zero-emission by 2035. But evidence continues to accrue that many of these “investments,” which are ultimately of course taxpayer funded, are risky ventures indeed.

As the Wall Street Journal notes, Tesla, the biggest EV maker in the United States, has seen its share prices plummet (down 41 per cent this year) as the company struggles to sell its vehicles at the pace of previous years when first-adopters jumped into the EV market. Some would-be EV makers or users are postponing their own EV investments. Ford has killed it’s electric F-150 pickup truck, Hertz is dumping one-third of its fleet of EV rental vehicles, and Swedish EV company Polestar dropped 15 per cent of its global work force while Tesla is cutting 10 per cent of its global staff.

And in the U.S., a much larger potential market for EVs, a recent Gallup poll shows a market turning frosty. The percentage of Americans polled by Gallup who said they’re seriously considering buying an EV has been declining from 12 per cent in 2023 to 9 per cent in 2024. Even more troubling for would-be EV sellers is that only 35 per cent of poll respondents in 2024 said they “might consider” buying an EV in the future. That number is down from 43 per cent in 2023.

Overall, according to Gallup, “less than half of adults, 44 per cent, now say they are either seriously considering or might consider buying an EV in the future, down from 55 per cent in 2023, while the proportion not intending to buy one has increased from 41 per cent to 48 per cent.” In other words, in a future where government wants sellers to only sell EVs, almost half the U.S. public doesn’t want to buy one.

And yet, Canada’s governments are hitting the gas pedal on EVs, putting the hard-earned capital of Canadian taxpayers at significant risk. A smart government would have its finger in the wind and would slow down when faced with road bumps. It might even reset its GPS and change the course of its 2035 EV mandate for vehicles few motorists want to buy.

From the Fraser Institute

By Derek J. Allison

According to a new study published by the Fraser Institute, if Canada wants to remain competitive with emerging economies around the world, we must increase our math, science and reading scores—and not simply pursue high levels of “equity and inclusion” as the primary goal for our schools.

Indeed, highly equitable and inclusive schools—with declining PISA scores, as is currently the case in Canada—do a disservice to students and society at large.

Why? Because higher test scores translate into greater “knowledge capital”—that is, the full body of knowledge available to an economy—and boost economic growth (and, incidentally, the tax revenues that fund our schools).

Indeed, the goal should be equitable access to a quality education. And the most realistic and meaningful way to measure student progress is through PISA tests, which every three years assess the performance of 15-year-olds worldwide in core subjects of math, science and reading rather than the limited curriculum objectives used in provincial testing, which can only show progress or decline within individual school systems. In today’s world, where competition is truly global, we must know how our students and schools perform compared to their peers in other countries, especially the “Asian Tigers” of Hong Kong, Korea, Singapore and Tiawan whose rapidly growing economies have been driven by rising PISA scores.

Obviously, countries with higher test scores can teach other countries how to improve—although there are limits and some traps here. Attempting to cut and paste Singapore’s or Korea’s much more meritocratic systems of highly competitive student assessment and selection would be impractical and impolitic in Canada. Even so, policymakers should consider reinstating more meaningful meritocratic norms in Canadian schools to encourage and recognize academic achievement. Nothing succeeds like success, except recognized and rewarded success.

Closer to home, other provinces could benefit from considering why Quebec is such a stellar performer in math and why Alberta has the highest overall PISA test score average of all provinces.

But fair warning, recent attempts at school improvement in Canada show that top-down one-size-fits-all changes—including extending compulsory attendance, reducing average class size and tinkering with course content—have had little positive effect on student performance, although they may please teacher unions. If policymakers want to achieve more equitable success for more students, they should introduce more flexibility, school autonomy and choice into our top-heavy centrally regulated school systems. In this respect it may be no accident that the three highest performing, mid-spending provincial K-12 education systems (Alberta, Quebec and Ontario) offer relatively high levels of school choice, although of quite different kinds.

Equity and inclusion are noble goals, but they shouldn’t interfere with student progress. There’s too much at stake, for students and the country.