Federal government should change course in upcoming budget to revitalize economy

From the Fraser Institute

From 2020 to 2030, Canada is projected to record the slowest rate of per-person GDP growth among 38 developed countries in the OECD. Simply put, Canada’s economy is stalling relative to its own past performance and other comparable countries around the world.

The Trudeau government will table its next budget on April 16, and it must address Canada’s stagnant economy. While the economy won’t turn around overnight, the government should recognize that its current policy approach isn’t working.

According to a recent Leger poll, nearly two-thirds of Canadians have a “poor” or “very poor” view of Canada’s economy. And it’s no wonder they feel this way. Canada is experiencing an economic growth crisis. From 2013 to 2022, inflation-adjusted per-person GDP (a broad measure of living standards) grew at its slowest pace since the Great Depression in the 1930s. Since the Trudeau government took office in 2015, per-person GDP (inflation-adjusted) in Canada has grown by only 1.9 per cent—nearly one-eighth the growth rate in the United States over that same period.

Moreover, from 2020 to 2030, Canada is projected to record the slowest rate of per-person GDP growth among 38 developed countries in the OECD. Simply put, Canada’s economy is stalling relative to its own past performance and other comparable countries around the world.

Why?

While there are many reasons for this slump in economic activity, consider the collapse of business investment in Canada. From 2014 to 2021, business investment per worker (excluding residential construction) fell from C$18,363 to C$14,687. In contrast, during that same period, business investment per worker in the United States grew from C$23,333 to C$26,751. In other words, Canada experienced the equivalent of a $43.7 billion decline in annual business investment while the U.S. enjoyed a C$585.1 billion increase (all figures adjusted for inflation).

Business investment is crucial for economic growth (and subsequent increased living standards) because it provides the resources needed to equip workers with tools and technology, for businesses to expand operations and become more productive, and for new businesses to enter the market. This in turn fuels innovation and productivity, which are key determinants of living standards.

Which brings us back to the Trudeau government. The collapse of business investment in Canada has been due in part to recent federal policy including Bill C-69, which introduced new and costly assessment criteria for energy projects, Bill C-48, which restricts tanker traffic off British Columbia’s north coast, and the forthcoming emissions cap on oil and gas, which will increase the cost of doing business in Canada.

Clearly, Ottawa has thrown up stiff regulatory barriers that deter investment in Canada’s energy and mining sectors. According to a 2023 survey of oil and gas executives, more than two-thirds of respondents viewed Canada’s regulatory environment as a deterrent to investment. And on the fiscal front, a string of deficits and massive debt accumulation create uncertainty around future tax increases, which gives investors another reason to take their money elsewhere.

Finally, the Trudeau government also believes that government should play an active role in the economy by handing out corporate welfare and subsidies to favoured industries and firms (i.e. electric vehicle battery industry). But when government tries to pick winners and losers in the market, it may actually inhibit rather than help the economy. Instead, the government should leave decisions in the free market to the investors, businessowners and entrepreneurs who have firsthand knowledge of their industries and businesses.

The Trudeau government has done little to promote economic growth and raise living standards for Canadians. While it will take time to turn things around, in its upcoming budget the government should finally change course and help revitalize the Canadian economy.

Authors:

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute

Related Topics:#2024Budget #CanadaPerPersonGDP #CanadianEconomy #FederalBudget #FraserInstitute #GradyMunro #JakeFuss #OECD

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The CBC is a government-funded giant no one watches

Published on June 17, 2025

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This article supplied by Troy Media.

By Kris Sims

The CBC is draining taxpayer money while Canadians tune out. It’s time to stop funding a media giant that’s become a political pawn

The CBC is a taxpayer-funded failure, and it’s time to pull the plug. Yet during the election campaign, Prime Minister Mark Carney pledged to pump another $150 million into the broadcaster, even as the CBC was covering his campaign. That’s a blatant conflict of interest, and it underlines why government-funded journalism must end.

The CBC even reported on that announcement, running a headline calling itself “underfunded.” Think about that. Imagine being a CBC employee asking Carney questions at a campaign news conference, while knowing that if he wins, your employer gets a bigger cheque. Meanwhile, Conservative Leader Pierre Poilievre has pledged to defund the CBC. The broadcaster is literally covering a story that determines its future funding—and pretending there’s no conflict.

This kind of entanglement isn’t journalism. It’s political theatre. When reporters’ paycheques depend on who wins the election, public trust is shattered.

And the rot goes even deeper. In the Throne Speech, the Carney government vowed to “protect the institutions that bring these cultures and this identity to the world, like CBC/RadioCanada.” Before the election, a federal report recommended nearly doubling the CBC’s annual funding. Former heritage minister Pascale St-Onge said Canada should match the G7 average of $62 per person per year—a move that would balloon the CBC’s budget to $2.5 billion annually. That would nearly double the CBC’s current public funding, which already exceeds $1.2 billion per year.

To put that in perspective, $2.5 billion could cover the annual grocery bill for more than 150,000 Canadian families. But Ottawa wants to shovel more cash at an organization most Canadians don’t even watch.

St-Onge also proposed expanding the CBC’s mandate to “fight disinformation,” suggesting it should play a formal role in “helping the Canadian population understand fact-based information.” The federal government says this is about countering false or misleading information online—so-called “disinformation.” But the Carney platform took it further, pledging to “fully equip” the CBC to combat disinformation so Canadians “have a news source
they know they can trust.”

That raises troubling questions. Will the CBC become an official state fact-checker? Who decides what qualifies as “disinformation”? This isn’t about journalism anymore—it’s about control.

Meanwhile, accountability is nonexistent. Despite years of public backlash over lavish executive compensation, the CBC hasn’t cleaned up its act. Former CEO Catherine Tait earned nearly half a million dollars annually. Her successor, Marie Philippe Bouchard, will rake in up to $562,700. Bonuses were scrapped after criticism—but base salaries were quietly hiked instead. Canadians struggling with inflation and rising costs are footing the bill for bloated executive pay at a broadcaster few of them even watch.

The CBC’s flagship English-language prime-time news show draws just 1.8 per cent of available viewers. That means more than 98 per cent of TV-viewing Canadians are tuning out. The public isn’t buying what the CBC is selling—but they’re being forced to pay for it anyway.

Government-funded journalism is a conflict of interest by design. The CBC is expensive, unpopular, and unaccountable. It doesn’t need more money. It needs to stand on its own—or not at all.

Kris Sims is the Alberta Director for the Canadian Taxpayers Federation

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

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The cornerstone of Trump Mobile is the 47 Plan. Offered for $47.45/month, the plan includes unlimited data, full 5G coverage across all three major carriers, and a suite of benefits tailored to middle-class families, truckers, veterans, and anyone tired of paying premiums to companies that don’t share their values.

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“We’re especially proud to offer free long-distance calling to our military members and their families,” said Eric Trump. “Those serving overseas should always be able to stay connected to the people they love back home.”

Unlike traditional providers, Trump Mobile advertises no contracts and no credit checks, appealing to a demographic long underserved by mainstream telecom giants. “Hard-working Americans deserve a wireless service that’s affordable, reflects their values, and delivers reliable quality they can count on,” Eric Trump added.

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