Business
Canadians don’t just feel worse off—they actually are
From the Fraser Institute
By Tegan Hill and Grady Munro
A recent survey indicates that the majority of Canadians feel worse off now than in 2020. New data from Statistics Canada show these feelings aren’t unfounded, and that Canadians indeed suffer a worse standard of living than they had in recent years.
According to the survey, 61 per cent of respondents said they are financially worse off than they were before the pandemic, while 89 per cent find it harder to manage expenses on everyday items such as food and shelter. In other words, most Canadians feel they have a lower standard of living than they did in recent years.
The new numbers from Statistics Canada show that inflation-adjusted (GDP)—the final value of all goods and services produced in the economy—shrank by 0.4 per cent during the second quarter of 2025 (i.e. from the beginning of April to the end of June). Population growth was essentially flat during those same three months, meaning inflation-adjusted per-person GDP—a broad measure of individual living standards— declined to $58,855 as of July 2025.
The decline in per-person GDP this quarter may be in part driven by U.S. tariffs, which began taking effect in March. And while Canada previously enjoyed two consecutive quarters of growing per-person GDP at the end of 2024 and beginning of 2025, it’s likely that Canadian businesses and consumers alike shifted spending forwards in order to avoid threatened tariffs. Put simply, per-person GDP growth in previous two quarters may have been fuelled by a shift in spending, which also helped to set up the observed slowdown in economic activity once tariffs began to take effect.
However, Canadian living standards have been stagnant since long before President Trump retook office—indeed, the current standard of living is below the level it was in the middle of 2019 ($59,905) before the pandemic. Moreover, stagnant living standards aren’t a universal problem. For perspective, per-person GDP (adjusted for inflation) in the United States grew by 11.0 per cent from mid-2019 to mid-2025.
Simply put, not only do Canadians feel that they are worse off than in recent years, the data shows they actually are. As such, governments across the country must implement policies that promote economic growth.
Policymakers at all levels of government have discussed the importance of strengthening the economy through various policies, including through removing interprovincial trade barriers and calls for additional tax relief for Canadians. Interprovincial trade barriers inhibit the free flow of goods and services between provinces, and uncompetitively high taxes make Canada less attractive to top talent while also discouraging productive economic behaviour like work, savings, investment and entrepreneurship. Both of these effects act as a drag on the economy, and as such policymakers are correct to highlight these areas.
However, one area that falls under the radar is the growing mountain of government debt in Canada. The persistence of annual budget deficits—where government spends more than it collects in revenues, and must borrow money to make up the difference—in recent years has pushed combined federal and provincial net debt (total debt minus financial assets) to a projected $2.30 trillion as of 2024/25. Despite a growing body of evidence that links higher government debt to slower economic growth (this can happen for many reasons), the federal government along with many provinces plan to continue running deficits and grow the mountain of debt. For perspective, one study found that reducing Canada’s debt to GDP ratio—the size of Canada’s debt relative to the economy—to pre-pandemic levels could boost annual incomes for an average employee by approximately $2,100 (inflation-adjusted). Put simply, governments across the country need to lower spending, balance their budgets, and begin paying down their respective debt burdens.
Not only do Canadians feel they are worse off than they were in recent years, new data shows that living standards actually are worse off. To help turn things around, governments across the country must pursue policies that promote economic growth.
From the Daily Caller News Foundation
At Tesla’s Austin headquarters, investors backed Musk’s 12-step plan that ties his potential trillion-dollar payout to a series of aggressive financial and operational milestones, including raising the company’s valuation from roughly $1.4 trillion to $8.5 trillion and selling one million humanoid robots within a decade. Musk hailed the outcome as a turning point for Tesla’s future.
“What we’re about to embark upon is not merely a new chapter of the future of Tesla but a whole new book,” Musk said, as The New York Times reported.
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The decision cements investor confidence in Musk’s “moonshot” management style and reinforces the belief that Tesla’s success depends heavily on its founder and his leadership.
Tesla Annual meeting starting now
https://t.co/j1KHf3k6ch— Elon Musk (@elonmusk) November 6, 2025
“Those who claim the plan is ‘too large’ ignore the scale of ambition that has historically defined Tesla’s trajectory,” the Florida State Board of Administration said in a securities filing describing why it voted for Mr. Musk’s pay plan. “A company that went from near bankruptcy to global leadership in E.V.s and clean energy under similar frameworks has earned the right to use incentive models that reward moonshot performance.”
Investors like Ark Invest CEO Cathie Wood defended Tesla’s decision, saying the plan aligns shareholder rewards with company performance.
“I do not understand why investors are voting against Elon’s pay package when they and their clients would benefit enormously if he and his incredible team meet such high goals,” Wood wrote on X.
Norway’s sovereign wealth fund, Norges Bank Investment Management — one of Tesla’s largest shareholders — broke ranks, however, and voted against the pay plan, saying that the package was excessive.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,” the firm said.
The vote comes months after Musk wrapped up his short-lived government role under President Donald Trump. In February, Musk and his Department of Government Efficiency (DOGE) team sparked a firestorm when they announced plans to eliminate the U.S. Agency for International Development, drawing backlash from Democrats and prompting protests targeting Musk and his companies, including Tesla.
Back in May, Musk announced that his “scheduled time” leading DOGE had ended.
From the Frontier Centre for Public Policy
By Conrad Eder
Frontier Centre for Public Policy study reveals a decade of inflated Liberal forecasts—a track record that casts a long shadow over Carney’s first budget
The Frontier Centre for Public Policy has released a major new study revealing that the Trudeau government’s federal budget forecasts from 2016 to 2025 were consistently inaccurate and biased — a record that casts serious doubt on the projections in Prime Minister Mark Carney’s first budget.
Carney’s 2025–26 federal budget forecasts a $78.3-billion deficit — twice the size projected last year and four times what was forecast in Budget 2022. But if recent history is any guide, Canadians have good reason to question whether even this ballooning deficit reflects fiscal reality.
The 4,000-word study, Measuring Federal Budgetary Balance Forecasting Accuracy and Bias, by Frontier Centre policy analyst Conrad Eder, finds that forecast accuracy collapsed after the Trudeau government took office:
- Current-year forecasts were off by an average of $22.9 billion, or one per cent of GDP.
- Four-year forecasts missed the mark by an average of $94.4 billion, or four per cent of GDP.
- Long-term projections consistently overstated Canada’s fiscal health, showing a clear optimism bias.
Eder’s analysis shows that every three- and four-year forecast under Trudeau predicted a stronger financial position than what actually occurred, masking the true scale of deficits and debt accumulation. The study concludes that this reflects a systemic optimism bias, likely rooted in political incentives: short-term optics with no regard to long-term consequences.
“With Prime Minister Carney now setting Canada’s fiscal direction, it’s critical to assess his projections in light of this track record,” said Eder. “The pattern of bias and inaccuracy under previous Liberal governments gives reason to doubt the credibility of claims that deficits will shrink over time. Canadians deserve fiscal forecasts that are credible and transparent — not political messaging disguised as economic planning.”
The study warns that persistent optimism bias erodes fiscal accountability, weakens public trust and limits citizens’ ability to hold government to account — a threat to both economic sustainability and democratic transparency.
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