Connect with us
[bsa_pro_ad_space id=12]

Frontier Centre for Public Policy

The PM as Leaf’s coach

Published

5 minute read

From the Frontier Centre for Public Policy

By Lee Harding

The budget had a $7.5 billion surplus when the Trudeau Liberals were sworn into power on November 4, 2016 and they turned it into a $5.4 billion deficit by the end of March.

The meme where Prime Minister Justin Trudeau becomes the new coach of the Toronto Maple Leafs, who lost in the NHL playoffs to Boston May 4th, has far more depth than people realize.

Previous head coach Sheldon Keefe was fired, leaving a prime job open.

“With my unique coaching style, the cup will win itself,” was Trudeau’s quote in the meme, his fictional words matched by a fake picture of him in a Leafs jacket.

The woes of both Canada and the Maple Leafs involve leadership and economics.

In the Leafs’ case, the players salary cap is $83.5 million. Last year, the team paid four players $11 million each, leaving fiscal scraps for the other 16 players.

Prior to becoming prime minister, Trudeau was asked how committed he would be to a balanced budget.

“The commitment needs to be a commitment to grow the economy, and the budget will balance itself,” Trudeau said, on February 11, 2014, as he criticized the Harper government approach.

“They’re artificially fixing a target of a balanced budget in an election year,” Trudeau explained.

“And that’s irresponsible. What you need to do is create an economy that works for Canadians, works for middle class Canadians, allows young people to find a job, allows seniors to feel secure in their retirement.”

Trudeau pledged to run modest deficits and a return to balance in the final year of his majority term, which, ironically, was what he condemned Conservatives of doing in the interview. We are still waiting for that balanced budget, of course.

The budget had a $7.5 billion surplus when the Trudeau Liberals were sworn into power on November 4, 2016 and they turned it into a $5.4 billion deficit by the end of March.

Prior to taking power, Trudeau argued that historically low interest rates were a good reason to borrow and spend on nation-building infrastructure. If the debt-to-GDP ratio kept dropping, good enough.

That excuse of low interest rates is gone, yet the deficits remain. When this fiscal year ends next March, the federal debt will be double what it was when the Trudeau Liberals took power. Deep deficits and higher lending rates have made debt servicing costs nearly double in the past two years alone.

Among the 38 nations in the Organization for Economic Co-Operation and Development, Canada’s growth in real GDP per capita was the fifth-weakest over 2019-22. Last November, Canada was named as one of only eight advanced countries where real incomes were lower than before the pandemic, as inflation outpaces growth.

Worse, the OECD projects Canada will be the worst performing economy among the 38 advanced economies over both 2020-30 and 2030-60.

Even before capital gains taxes were hiked in the recent budget, investors knew Canada wasn’t a good place to grow wealth. The country lost $225 billion in capital investment from 2016 through 2022.

Whether it’s a winning team or a winning economy, ignoring financial realities steals success.

Trudeau’s economic plan has relied on a burgeoning, high-paid public sector, almost limitless immigration, carbon taxes, and green spending. He has put all the money on the wrong players.

Canada was altogether different in 1967, the last time the Leafs won a cup. Since then, the first and second prime ministers Trudeau have eroded this country’s social and fiscal moorings, leaving us conflicted and financially burdened instead of celebrating our success.

So, when will Canada get a new coach?

Lee Harding is a Research Fellow for the Frontier Centre for Public Policy.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Energy

Why we should be skeptical of the hydrogen economy

Published on

From the Frontier Centre for Public Policy

By Hügo Krüger and Ian Madsen

Hydrogen has a low energy density by volume, compared to well-established and practical fuels such as gasoline, diesel, and natural gas. It also has a low ignition point and is three times as explosive as natural gas, which could be either positive or negative.

At first glance, using highly variable, intermittent, inexpensive renewable energy to produce hydrogen for energy supply stabilization seems logical. However, renewable energy is not always readily available. The concept of hydrogen as a ‘buffer,’ akin to a battery, to ensure consistent renewable power is more complex than it appears.

Upon further examination, the idea is impractical and expensive for several reasons. Among them, hydrogen has a low energy density by volume, compared to well-established and practical fuels such as gasoline, diesel, and natural gas. It also has a low ignition point and is three times as explosive as natural gas, which could be either positive or negative, depending on its use.

Contrary to claims, renewable energy is neither inexpensive nor environmentally benign. Storing hydrogen in a natural gaseous state requires massive, costly storage vessels. Electrolyzing is expensive and will likely remain that way. Similarly, the cost of producing hydrogen is higher than that of deriving it from natural gas, which produces carbon dioxide, which is unwanted. There are some other techniques, such as pressure, heat, and radiolysis from radiation emitted from nuclear reactors, that are feasible, perhaps in combination. Small ‘micro nuclear reactors’ may drive down these costs. Atomic reactors are already used in U.S. Navy aircraft carriers to produce aviation and diesel synthetic fuel.

There are also a series of impractical issues. Existing pipeline infrastructure cannot transport pure hydrogen due to hydrogen embrittlement, and hydrogen cannot easily be used as a transportation fuel. A new Teflon-coated pipeline and distribution system parallel to the existing natural gas network would have to be built, costing hundreds of billions of dollars in North America alone.

While the idea of synthetic fuels using hydrogen may seem more feasible, it would likely be limited to a ‘niche role,’ potentially in natural gas-deficient nations. However, this would still necessitate significant investment. Ultimately, diverting funds to this ‘hydrogen economy’ could be a misallocation of capital from other, potentially more viable, areas.

Download the full report in PDF format here. (16 pages)

Hügo Krüger is a YouTube podcaster, writer, and civil nuclear engineer who has worked on a variety of energy related infrastructure projects ranging from Nuclear Power, LNG and Renewable Technologies. He holds a Master’s in Nuclear Civil Engineering from École Spéciale des Travaux Publics, du bâtiment et de l’industrie, Paris and a bachelor’s from the University of Pretoria.

Ian Madsen, BA (Economics, University of Alberta), MBA (Finance, University of Toronto), holds the Chartered Financial Analyst designation. He was an investment portfolio manager; owned his own investment counselling firm; published an investment newsletter; founded the professional society now known as CFA Saskatchewan in 1986; and was a director of an investment research operation in India. Since 2016, he has been the Senior Policy Analyst at the Frontier Centre for Public Policy, performing valuation analyses on federal and provincial Crown corporations in Canada, and also written numerous policy analyses. He lives in Surrey, British Columbia with his family.

Continue Reading

Frontier Centre for Public Policy

Where was Canada’s Governor General on D-Day?

Published on

From the Frontier Centre for Public Policy

By Colin Alexander

There really are non-partisan functions that need to be done by the representative of all Canadians, the Governor General, and not that of a self serving, partisan and narcissist politician in pursuit of photo-ops.

On D-Day June 6 Canada’s Governor General Mary Simon should have taken her rightful place. At ceremonies in France. But she wasn’t there. Instead, Prime Minister Justin Trudeau pushed her aside. As usual.

The D-Day landings may seem like ancient history even as June 6, 1944 was a defining day for Canada. But it’s important to recall that over 14,000 Canadians stormed Juno Beach, as part of the largest amphibious landing in history. More than 5,000 Canadian troops were killed and thousands more injured in the Battle of Normandy. While we celebrate the eventual defeat of Germany, we may also recall Winston Churchill’s saying we need to remember that there was a Germany before Hitler.

The military historian Basil Liddell Hart had a view of history that’s largely gone missing in the western democracies. Essential reading is his book, Why don’t we learn from history? He quoted the Roman historian Polybius: “There are two roads to the reformation of mankind—one through the misfortunes of their own, the other through the misfortunes of others; the former is the most unmistakable, the latter the less painful…we should always look out for the latter, for thereby we can, without hurt to ourselves, gain a clearer view of the best course to pursue… the knowledge gained from the study of true history is the best of all education for practical life.”

Arguably, the conflicts in Vietnam, Afghanistan, Iraq, Ukraine and Gaza could have been averted or could have evolved less disastrously by heeding the lessons of history—and, specifically, from history of the two World Wars. Undoubtedly, the mismanaged exit from Kabul emboldened President Putin. Disaster in Ukraine since the invasion of Crimea represents failure to heed the ancient principle, also from Roman times, If you want peace, prepare for war. There was no deterrent to the invasion of Ukraine. And the western democracies have consistently delivered far too little materiel and far too late.

There’s abject disrespect at the highest levels for truth and tradition, and the values that made of Canada a great country. I came across a phrase in news  reports that made me shudder. The Governor General was relieved of her duties when it was she who should have hosted a state dinner for President Joe Biden in 2023. Prime Minister Trudeau had no business relieving her of her duties. He usurped her constitutional role.

The Governor General was also relieved of her duty to attend the D-Day ceremonies in France. Arguably, it was her job to unveil unveiled a statue commemorating Canada’s participation. In her capacity as Colonel-in-Chief of the Royal Regina Rifles, Princess Anne performed that ceremony. Fair enough. But as a minimum, the Governor General should have been there too. Instead, of course, Trudeau traveled to France after shunting the Governor General off to perform a token ceremony in New Brunswick.

My point is, there really are non-partisan functions that need to be done by the representative of all Canadians, the Governor General, and not that of a self serving, partisan and narcissist politician in pursuit of photo-ops.

Canadians don’t normally need to know that the British North America Act vests in the Governor General an ultimate duty to override political abuse. But that’s why King Charles’s representative signs legislation into law as well as other proclamations. That function, and the power to withhold it, is the last resort for maintaining the free and democratic society that Canada purports to be.

History tells of ultimate leaders who failed that duty to their people. In 1921, under pressure of riots, Italy’s King Victor Emmanuel III refused to declare a state of emergency and impose martial law. Instead he dissolved the parliament and asked Mussolini to take the power that evolved into his dictatorship. Similarly, in 1933 Germany’s ailing President Paul von Hindenburg signed into law the Enabling Act that empowered Hitler’s unbridled exercise of power.

D-Day reinforces this lesson from history, from two thousand years ago. The Roman political philosopher Cicero warned: “Though liberty is established by law, we must be vigilant, for liberty to enslave us is always present under that very liberty. Our constitution speaks of the people’s general welfare. Under that phrase all manner of excesses can be employed by lusting tyrants …”

In sum, it’s important to learn history and to maintain traditions. That includes having Governors General who insist on taking the lead role as Canada’s functional head of state—and, most importantly, not having politicians usurping the vice-regal role.

Colin Alexander’s degrees include Politics, Philosophy, and Economics from Oxford. His latest book is Justice on Trial: Jordan Peterson’s case shows we need to fix the broken system.  

Continue Reading

Trending

X