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Economy

A Fair Deal Includes Energy Security

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This article contributed by Josh Andrus, Executive Director of Project Confederation

Energy security.

It’s a concept that has been ignored by many – including our federal government in Ottawa – for far too long.

Russia’s invasion of Ukraine has suddenly helped the world realize what’s been obvious to many Albertans for a long time – we still need oil and gas!

The same parade of politicians who crusaded to save the world from the threat of “catastrophic” climate change are now coming to the realization that there is a fundamental flaw in the Green New Deal / Leave It In The Ground / Build Back Better strategy.

Energy is the industry that powers every other industry – and as such, a safe supply of affordable, reliable energy is not only good for the domestic economy but also a crucial tool in an increasingly volatile international geopolitical landscape.

Earlier this week, after a big push by our friends at the Alberta Institute, and many other political and non-profit groups, the federal government finally announced that they would ban the importation of Russian oil.

Russia’s aggressive actions, and the related uncertainty, have now driven the price of crude oil over the $115/bbl benchmark.

[Editor’s note: we had to increase that price four times while writing this piece!]

Thankfully, Alberta has a large supply of energy resources, resources that could displace the loss of Russian imports and help keep energy affordable for Canadians.

Of course, it would have been better if our calls had been listened to years ago, and we had the infrastructure in place already!

But, as the saying goes:

The best time to build a pipeline was 20 years ago.

The second-best time is now!

If our politicians had any sense, Keystone XL and Energy East would have been given emergency approval the moment war broke out.

Yet, here we are, a week into a European war, and there’s been nary a whisper from the White House or Rideau Cottage.

If Alberta can’t convince Canada to build a pipeline in the middle of a war in Europe, we’ll surely never get one.

To make matters worse, the pipeline issues aren’t even the only possible problem on the horizon.

In past years, $100+ oil was good for Alberta.

Economic growth explodes, jobs are plentiful, and the pay is phenomenal.

Some of that will surely happen in the coming months, but with this current boom coinciding with major inflationary pressures, there are risks for Alberta too.

High energy prices and the ensuing increase in the cost of living will hurt the rest of the country.

The Rest of Canada will complain that Alberta has it so good, while they struggle to pay their hydro bills.

Will the Rest of Canada decide to start extracting their own plentiful natural resources, currently kept in the ground for nonsensical environmental concerns?

Of course not.

Ottawa will, undoubtedly, devise yet another means of wealth redistribution instead.

Once again, they’ll figure out a way to make Alberta pay for their poor policy choices.

They probably won’t have the gall to call it a “National Energy Program”.

But they might.

Remember, the major issues driving Western alienation are structural deficiencies in Confederation, deficiencies that have only gotten worse in recent decades, not better.

The West is underrepresented in Parliament, the Senate is unelected and ineffective at protecting Provincial rights, the very concept of fairness is undermined in our Constitution via equalization, and the Supreme Court screws the West and protects the rest.

At Project Confederation, our mission is clear:

To build a movement that will reform Confederation and achieve a fairer deal, in whatever legal configuration that may require.

I suspect we’re going to have a lot of work to do in the coming months!

If you’d like to help us with that work, please reach out to us to get involved, or consider making a donation to help fund our efforts.

Regards,

Josh Andrus
Executive Director
Project Confederation

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Economy

Young Canadians are putting off having a family due to rising cost of living, survey finds

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From LifeSiteNews

By Clare Marie Merkowsky

An April study has found that 42% of Gen Z and 39% of Millennials are putting off starting families due to a lack of work-life balance spurred by an increase in the cost of living.

A survey has found that more Canadians are delaying starting a family due to a lack of work-life balance spurred by the rising cost of living.  

According to an April 24 Express Employment Professionals-Harris Poll survey, one-third of employed job seekers stated that they are putting off starting a family due to a lack of work-life balance, including 42% of Gen Z and 39% of Millennials.

“The most common thing I hear from candidates who are putting off starting a family is that the cost of living is too high,” Jessica Culo, an Express franchise owner in Edmonton, Alberta stated.  

“We definitely hear more and more that candidates are looking for flexibility, and I think employers understand family/work balance is important to employees,” she added.   

Two-thirds of respondents further stated that they believe it’s essential that the company they work for prioritizes giving its employees a good work-life balance as they look to start a family. This included 77% of Gen Z and 72% of Millennials.  

The survey comes as Canada’s fertility rate hit a record-low of 1.33 children per woman in 2022. According to the data collected by Statistics Canada, the number marks the lowest fertility rate in the past century of record keeping.  

Sadly, while 2022 experienced a record-breaking low fertility rate, the same year, 97,211 Canadian babies were killed by abortion.    

Canadians’ reluctance or delay to have children comes as young Canadians seem to be beginning to reap the effects of the policies of Prime Minister Justin Trudeau’s government, which has been criticized for its overspending, onerous climate regulations, lax immigration policies, and “woke” politics.    

In fact, many have pointed out that considering the rising housing prices, most Canadians under 30 will not be able to purchase a home.     

Similarly, while Trudeau sends Canadians’ tax dollars oversees and further taxes their fuel and heating, Canadians are struggling to pay for basic necessities including food, rent, and heating.  

A September report by Statistics Canada revealed that food prices are rising faster than the headline inflation rate – the overall inflation rate in the country – as staple food items are increasing at a rate of 10 to 18 percent year-over-year.    

While the cost of living has increased the financial burden of Canadians looking to rear children, the nation’s child benefit program does provide some relief for those who have kids.

Under the Canadian Revenue Agency’s benefit, Canadians families are given a monthly stipend depending on their family income and situation. Each province also has a program to help families support their children.  

Young Canadians looking to start a family can use the child and family benefits calculator to estimate the benefits which they would receive.    

Regardless of the cost of raising children, the Catholic Church unchangeably teaches that it is a grave sin for married couples to frustrate the natural ends of the procreative act through contraceptives, abortion or other means.

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Economy

Today’s federal government—massive spending growth and epic betting

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From the Fraser Institute

By Jock Finlayson

One can legitimately ask whether the federal government has simply grown too big, complex and unwieldy to be managed at all

The Trudeau government’s 2024 budget landed with a thud, evoking little enthusiasm and drawing spirited criticism from business leaders, investors, provincial premiers and (of course) the opposition parties. Several elements of the budget have garnered outsized attention, notably the pledge to run endless deficits, the imposition of higher capital gains taxes, and various new programs and policy initiatives intended to address Canada’s housing crisis.

But the budget includes a few eye-catching data points that have been downplayed in the subsequent political and media commentary.

One is the sheer size of the government. The just-completed fiscal year marked a milestone, as Ottawa’s total spending reached half a trillion dollars ($498 billion, to be exact, excluding “actuarial losses”). According to the budget, the government will spend $95 billion more in 2024-25 than it planned only three years ago, underscoring the torrid pace of spending growth under Prime Minister Trudeau.

One can legitimately ask whether the federal government has simply grown too big, complex and unwieldy to be managed at all, even if we assume the politicians in charge truly care about sound management. How many parliamentarians—or even cabinet ministers—have a sufficient understanding of the sprawling federal apparatus to provide meaningful oversight of the vast sums Ottawa is now spending?

The ArriveCAN scandal and chronic problems with defence procurement are well-known, but how good a job is the government doing with routine expenditure programs and the delivery of services to Canadians? The auditor general and the Parliamentary Budget Officer provide useful insights on these questions, but only in a selective way. Parliament itself tends to focus on things other than financial oversight, such as the daily theatre of Question Period and other topics conducive to quick hits on social media. Parliament isn’t particularly effective at holding the government to account for its overall expenditures, even though that ranks among its most important responsibilities.

A second data point from the budget concerns the fast-rising price tag for what the federal government classifies as “elderly benefits.” Consisting mainly of Old Age Security and the Guaranteed Income Supplement, these programs are set to absorb $81 billion of federal tax dollars this year and $90 billion by 2026-27, compared to $69 billion just two years ago. Ottawa now spends substantially more on income transfers to seniors than it collects in GST revenues. At some point, a future government may find it necessary to reform elderly benefit programs to slow the relentless cost escalation.

Finally, the budget provides additional details on the Trudeau government’s epic bet that massive taxpayer-financed subsidies will kickstart the establishment of a major, commercially successful battery and electric vehicle manufacturing “supply chain” in Canada. The government pledges to allocate “over $160 billion” to pay for its net-zero economic plan, including $93 billion in subsidies and incentives for battery, EV and other “clean” industries through 2034-35. This spending, the government insists, will “crowd in more private investment, securing Canada’s leadership” in the clean economy.

To say this is a high-risk industrial development strategy is an understatement. Canada is grappling with an economy-wide crisis of lagging business investment and stagnant productivity. Faced with this, the government has chosen to direct hitherto unimaginable sums to support industries that make up a relatively small slice of the economy. Even if the plan succeeds, it won’t do much to address the bigger problems of weak private-sector investment and slumping productivity growth.

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