Business
Budget update proves Trudeau isn’t serious about federal finances

From the Canadian Taxpayers Federation
Author: Franco Terrazzano
“when you pay the GST on a hockey stick, a tank of gas or bar of soap, every penny will go to interest charges on the federal debt. In fact, interest charges will surpass federal health-care transfers next year”
Taxpayers should brace for impact based on the finance minister’s latest projections.
Interest charges on the federal debt will go from $47 billion this year to $61 billion in 2028-29, according to the budget update.
But what does $61 billion mean to you?
Sixty-one billion is the same amount the government plans to collect with the GST in 2028-29.
So, in a few short years, when you pay the GST on a hockey stick, a tank of gas or bar of soap, every penny will go to interest charges on the federal debt.
In fact, interest charges will surpass federal health-care transfers next year.
Let the shock sink in just a little deeper: what could we do if it weren’t for the federal debt?
We could virtually double federal health spending.
Or we could completely eliminate the GST in a couple years.
Somehow the government is communicating these perplexing projections with considerable calmness.
Finance Minister Chrystia Freeland claims “the foundation of our Fall Economic Statement is our responsible fiscal plan.”
But last year the government spent $474 billion. And this year the feds plan on spending $489 billion. By 2029, the government will be spending $595 billion a year.
Pro-tip for Freeland: when you spend billions of dollars more every year, you’re saving money wrong.
And all that spending comes on top of an already ballooned base line. Even before the pandemic, the Trudeau government was spending all-time highs. And that’s after accounting for inflation and population differences.
Last year’s $35-billion deficit will increase to $40 billion this year. The feds have no plan to balance the budget. And that’s pushing up interest charges.
Again, brace yourself, because in 2028, federal debt interest charges will cost taxpayers $61 billion. For context, pre-pandemic interest charges were around $20 billion a year.
Meanwhile, if you’re hoping for meaningful tax relief from this government, you shouldn’t hold your breath.
“I absolutely understand that after three difficult years – with a global pandemic, global inflation, and global interest rate hikes – Canadians are worn out, frustrated, and feeling the squeeze,” Freeland said. “What Canadians deserve today is for us to address the very real pain that so many are feeling.”
The easiest and simplest way for Freeland to help Canadians is to stop taking so much money from taxpayers’ wallets in the first place.
But Freeland and Prime Minister Justin Trudeau aren’t even willing to provide the simplest forms of tax relief like ending the sales tax-on-tax at the gas pumps. The GST on the carbon tax alone will cost taxpayers $429 million this year.
The government isn’t willing to end the anti-democratic escalator that increases alcohol taxes every year without a single vote in Parliament. Next year’s hike will cost taxpayers about $100 million.
The government isn’t even willing to extend the same relief to all Canadians that it gave Atlantic Canadian families and remove the carbon tax from everyone’s home heating bills. The carbon tax on natural gas will cost the average family $300 this year.
The budget update is an admission that the government has a spending problem, but it still isn’t serious about managing our finances or providing real tax relief.
The solution for Trudeau and Freeland should be simple: put down the credit card and pick up some scissors.
This column was originally published in the Toronto Sun on Nov. 24, 2023.
Business
Cannabis Legalization Is Starting to Look Like a Really Dumb Idea

Back in March 2024, I wrote about some early indications that Canada’s legalization of cannabis was, on balance, causing more harm than good. Well it looks like we’ve now moved past “early indications” and entered the “nervously searching for the exit” stage.
The new concerns follow the recent release of a couple of groundbreaking Canadian studies: Cannabis Use Disorder Emergency Department Visits and Hospitalizations and 5-Year Mortality which found evidence relating cannabis use to early death, and Convergence of Cannabis and Psychosis on the Dopamine System which describes a possible biological mechanism linking cannabis use to psychosis.
Canadian governments had very little moral liability for the medical consequences of cannabis use before they legalized it in 2018. However, legalization predictably led to a near doubling of consumption. In 2012, according to Statistics Canada, just 12.2 percent of Canadians 15 and over had used cannabis in the previous 12 months. By 2022, that number had climbed to 22 percent – representing nearly seven million Canadians. Cases of cannabis use disorder (CUD) treated in Ontario hospitals increased from just 456 in 2006 to 3,263 in 2021.
The government’s decision to legalize the drug¹ has arguably placed millions of additional people at risk of serious health outcomes.
Let’s take a look at the new evidence. The mortality study used hospital care and mortality data for more than eleven million Ontario residents. The researchers were given meaningful access to raw data from multiple government sources and were apparently compliant with all appropriate privacy regulations. They tracked 107,103 individuals who, between 2006 and 2021, were treated in an Ontario hospital for cannabis use disorder.
The main control group used for statistical comparison was all Ontarians. And the secondary control group was made up of individuals with incident hospital-based care for other substance use disorders, like alcohol, opioids, stimulants.
The primary outcome tracked by the study was all-cause mortality. The secondary outcome was mortality subdivided into alcohol poisoning, opioid poisoning, poisoning by other drugs, trauma, intentional self-harm, cancer, infection, diseases of the circulatory system, respiratory system, and gastrointestinal system.
The researchers adjusted for age, sex, neighborhood income quintile, immigrant status, and rurality (urban vs rural residence). They also controlled for comorbid mental health and care for substance use during the previous 3 years.
In other words, this looks like a well-constructed retrospective study based on excellent data resources.
What did they discover? People who received hospital-based care for cannabis use disorder were six times more likely to die early than the general population. And those CUD-related deaths lead to an average 1.8 life-years lost. After adjusting for demographic factors and other conditions, the added risk of early death was still three times greater than the general population. (Although people with CUD incidents were less likely to die young than those with other substance abuse disorders.)
CUD incidents were associated with increased risks for suicide (9.7 times higher), trauma (4.6 times higher), opioid poisoning (5.3 times higher), and cardiovascular and respiratory diseases (2 times higher).
The Convergence of Cannabis and Psychosis study was performed in and around London, Ontario. This one is a bit beyond my technical range, but they claim that:
Elevated dopamine function in a critical SN/VTA subregion may be associated with psychosis risk in people with CUD. Cannabis was associated with the hypothesized final common pathway for the clinical expression of psychotic symptoms.
Which does indicate that there may be more connecting cannabis to overall harm than just social or economic influences.
I’m not suggesting that the government should restore the original ban on cannabis. Like alcohol prohibition, the moment when that might have been possible is now long past. But I am wondering why politicians find it so difficult to wait for even minimal scientific evidence before driving the country over the cliff?
Business
‘Experts’ Warned Free Markets Would Ruin Argentina — Looks Like They Were Dead Wrong

From the Daily Caller News Foundation
The current state of Argentina’s economy is a far cry from what “experts” predicted when they warned that President Javier Milei’s pro-free market leadership would devastate the country.
The chainsaw-wielding libertarian rose to power on promises to slash government spending, implement free-market policies and lift strict currency controls to rescue a nation crippled by inflation, debt and entrenched poverty. Though the pundit class warned that Milei’s policies would spark an economic collapse, the results so far have been a rebuke to those warnings.
Just days before the November 2023 presidential election, 108 economists from around the world signed an open letter claiming that Milei’s “simple solutions” were “likely to cause more devastation in the real world in the short run, while severely reducing policy space in the long run.”
“His policies are poorly thought through. Far from building a consensus, he would struggle to govern,” The Economist’s editorial board wrote in a September 2023 piece describing “Javier Milei’s dangerous allure.”
Well over a year into Milei’s presidency, Argentina is showing its strongest economic performance in years. The country’s gross domestic product (GDP) jumped 7.7% in April compared to the same month in 2024, far exceeding expectations.
The GDP is expected to rise by 5.2% in 2025, compared to declines of 1.3% in 2024 and 1.9% in 2023, according to the Organization for Economic Cooperation and Development (OECD).
Inflation, a long-standing hallmark of Argentina’s economic dysfunction, dropped to 1.5% between April and May, reaching a five-year low. Annual inflation has plunged from 160.9% in November 2023 — just before Milei took office — to 43.5% in May.
Meanwhile, poverty rates have also declined sharply, falling from 52.9% in the first half of 2024 to 38.1% in the second half of the year.
Argentina’s rental housing supply also increased by 212% between December 2023 and June 2024, after Milei repealed the country’s rent control laws, according to the Cato Institute.
“Against the background of a difficult legacy of macroeconomic imbalances, Argentina has embarked on an ambitious reform process, starting with an unprecedented upfront fiscal adjustment. Reforms have started to pay off. Inflation has receded and the economy is set for a strong recovery,” the OECD noted in its new analysis of the Argentinian economy. “Maintaining the reform momentum will be key to restore confidence, boost investment and productivity growth.”
Milei — a self-described anarcho-capitalist — has been an ardent supporter of President Donald Trump’s efforts to downsize the U.S. government, including the Department of Government Efficiency’s (DOGE) push to cut spending.
“I come from a country that bought all of those stupid ideas that went from being one of the most affluent countries in the world to one to one of the [poorest],” Milei said in a speech at the Conservative Political Action Conference in 2024. “If you don’t fight for your freedom, they will drag you into misery … Don’t surrender.”
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