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Trudeau’s Christmas Gifts to Canadians: Unaffordable Housing, Inaccessible Health Care, Out-of-Control Immigration and Sagging Productivity

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From the C2C Journal

By Gwyn Morgan

On Tuesday Statistics Canada reported that Canada’s population leapt by 430,635 people from July through September of this year, after previously reporting that our nation added 1,050,110 people in 2022. That was the largest such annual number ever recorded and the nation’s highest percentage growth rate since 1957. The ostensibly non-political federal agency proclaimed this result as “certainly cause for celebration.” Ninety-six percent of the growth came from international migration. People accepted as new permanent residents accounted for 437,000 of those immigrants, while 613,000 were classified as non-permanent. In November, the federal government announced plans to grant permanent residency to 465,000 this year, with a goal of half a million by 2025. Combined with a high rate of non-permanent arrivals – such as students and temporary foreign workers – this means Canada will continue to have by far the highest immigration rate of any G7 country.

The Justin Trudeau government says we need all those immigrants to make up for a chronic shortage of skilled workers. Permanent immigrants fall into four broad acceptance categories: economic (and, thus, presumably skilled), family reunification, refugees and protected persons, and a final category described as “humanitarian, compassionate and others.” Economic immigrants make up about 60 percent of the total.

1.1 million per year, nearly 450,000 in the last quarter alone: The Justin Trudeau government vows to continue inviting new immigrants at record rates, allegedly to fill shortages of skilled workers, yet private-sector job creation in Canada is lagging, and many immigrants appear to go straight into government work. (Sources of photos: (top) Diary Marif; (middle) Michael Charles Cole/CBC; (bottom) JHVEPhoto/Shutterstock)

But before one jumps to the conclusion that our immigration system is working as it should, providing Canadian companies large and small from coast to coast with the skilled employees they would otherwise lack, one must pose this question: how many of those skilled immigrants are simply being added to the already massive number of federal, provincial and municipal government employees? The answer to that question is alarming.

A study by the Fraser Institute, released one month ago, with the revealing title Government-sector job growth dwarfs private-sector job growth across Canada, found that governments added far more employees than the private sector in all ten provinces between February 2020 and June 2023 – a period spanning from just before the pandemic set in, across the hard times of Covid-19, and onward for a year after it faded. During this time, the number of government jobs increasing by 11.8 percent compared to just 3.3 percent in the private sector – a whopping total of 446,000 government bureaucrats added.

There’s no doubt that immigrants are needed to help fill shortages of workers in some categories and certain regions. But more than 1 million per year? Of whom tens if not hundreds of thousands have probably ended up on the public payroll, i.e., going straight to being consumers of public resources rather than ever being productive contributors.

Canada’s immigration policy should be (but isn’t) considering two stark realities: a serious housing shortage/price crunch and a disintegrating health care system. Both situations – it’s no exaggeration to call them crises – are getting worse every day. While some housing markets are plagued by chronically slow construction, a lack of home building isn’t the main culprit. Last year actually saw a new national record set for housing starts at 320,000 units. Yet even that is far less than what’s needed to house our surging population.

Further, Canada’s population has been increasing by 600,000 or more every year for the past five years, while housing starts are typically far lower than the 2022 record – meaning we are falling ever-farther behind on housing. The Trudeau government’s much-boasted-about Housing Accelerator Fund has been a dismal failure. A recent article in Policy Magazine noted that Canada faces a housing shortfall of 3-4 million units by 2030. While high interest rates, zoning and NIMBYism are all playing roles, the article warns: “Historically high immigration levels will push up demand and drive up housing prices and rental rates across the country.”

While this seems to have all escaped the notice of Trudeau, even some of Canada’s elite are starting to catch on. Last week Tiff Macklem, the hapless Bank of Canada governor whose dithering helped heighten Canada’s pandemic-induced inflation to crisis levels, noted in a speech at Toronto’s Royal York Hotel that, “Canada’s housing supply has not kept up with growth in our population, and higher rates of immigration are widening the gap.”

While housing starts hit all-time records in 2021 and 2022, the new construction was subsumed beneath Canada’s surging population; the national housing shortfall is growing every year and projected to reach 3-4 million units by 2030. (Source of graph: Canadian Politics and Public Policy)

As bad as Canada’s housing situation is, health care is even worse – and deteriorating rapidly. A bulletin two weeks ago from public policy think-tank Second Street reported that more than 17,000 Canadians died while waiting for surgery or diagnostic scans in a one-year period straddling 2022-2023. Second Street’s figure is based on a series of Freedom of Information requests. It was an increase of 64 percent since 2018 and a five-year high.

Because many provincial health authorities provide incomplete data, Second Street believes the true figure is actually much worse: nearly 31,400 preventable deaths. The deceased victims had waited as long as 11 years for treatment. These horrific results are further evidence that Canada’s healthcare system is failing even to tread water and can be described as disintegrating or even collapsing. The situation is quite literally deadly. “We’re seeing governments leave patients for dead,” says Second Street’s president, Colin Craig.

And yet, incomprehensibly, the Trudeau government decided 2022 was the time to bring in nearly 1.1 million newcomers, and vowed to continue immigration flows at similar rates for years. And, as I pointed out near the end of this recent article, the published immigration figure is on top of 550,000 student visas and 600,000 work permits for temporary foreign and “international mobility” workers. Many of these workers are semi-skilled or completely unskilled and go straight to work in fast food or other low-paid services. How could any sane government follow such a foreseeably disastrous path?

“We’re seeing governments leave patients for dead”: According to Colin Craig (left), president of public policy research organization Second Street, the catastrophic state of Canada’s health care is likely responsible for over 30,000 preventable deaths-while-waiting per year. (Sources of photos: (middle) The Canadian Press/Nathan Denette; (right) Shutterstock)

During my long career in the energy sector, our company faced numerous existential challenges (not least how to survive the disastrous “Trudeau Number One’s” National Energy Program). I realized that two essential and entwined priorities were to do whatever it took to retain our highly proficient employees while also reining in expenditures as much possible – keeping the company both solvent and capable. We also developed a priority list for increasing capital expenditures to resume growing when conditions improved (much of which had to do with getting rid of Trudeau Number One). In such a situation, continuing to hire and spend would have been a path to certain disaster.

Sadly for our benighted country, the Trudeau government has done exactly that, following a path that has brought us to the brink of national disaster in several critical areas at once. Now, our unprecedented housing crisis has resulted in even job-holding and fully functional Canadians camping long-term in vehicles and tents. Fellow citizens are suffering and dying on health care waiting lists while being forbidden to access private care by federal legislation (and some provincial policies), with Canada’s courts often siding with government when challenged. And yet the Trudeau government has reconfirmed an immigration goal of half a million permanent residents with no lessening of non-resident immigrants that together will add another 1 million-plus newcomers in 2024.

Down and down: While Canada’s aggregate gross domestic product (GDP) continues to expand weakly, the metric that really counts – real GDP per individual Canadian – has been plunging and is projected to keep falling, signalling a weakening standard of living. (Sources: (photo) Pexels; (graph) TD Canada)

It’s hard to comprehend how much worse Canada’s housing and health care crises will get under these toxic policies. But they most assuredly will.

Adding to these self-inflicted wounds, our country now faces economic stagnation. While Canada’s aggregate (or “headline”) gross domestic product (GDP) has continued to increase, though weakly, the metric that really counts – GDP per individual Canadian – has stalled. Per capita GDP is critical because it is closely tied to individual income; to over-simplify slightly, workers can’t earn more if they don’t produce more. And here the situation is dire. “Real GDP per capita has contracted over the last three quarters,” states a July 15 report from TD Economics. “Longer term, the OECD projects that Canada will rank dead last amongst OECD members in real GDP per capita. Without fundamental changes, Canada’s standard-of-living challenges will persist well into the future.”

The key to producing more (without simply working more hours) and, hence, to earning more, is to increase the productivity of workers. And that is driven by private-sector capital investment in buildings/infrastructure, machinery/equipment, processes, software and other “intellectual capital,” research-and-development, and anything else that allows workers to increase their output without working more hours. Part of that increased output can be returned to workers in the form of higher compensation. That is how “real” wages grow without spurring inflation.

And in this critical dynamic, Canada has been lagging the U.S. and even Europe for over 20 years. Today our GDP per hour worked is stalled out and may actually be regressing. The TD Economics report cited above forecasts that this key metric will continue to experience “persistent contractions” at least throughout 2024. Meaning Canada’s shortfall in productivity – and personal income – versus the U.S. and leading European countries will continue to increase.

No longer a gap, a chasm: Canada’s invested capital per worker, once comparable to that of the U.S., has fallen dramatically since the Trudeau Liberals came to office in 2015. Says the C.D. Howe Institute: “Businesses see less opportunity in Canada and [this] prefigures weaker earnings and living standards.” (Sources: (photo) The Canadian Press/Paul Chiasson; (graph) TD Canada)

A report last year from the CD Howe Institute, Decapitalization: Weak Business Investment Threatens Canadian Prosperity, points out that the invested capital per worker, key to a country’s ability to produce goods and services, “has been weak since 2015” – the year the Trudeau government came into office. “Before 2015, Canadian business had been closing a long-standing gap with the U.S.,” the report states, before warning, “Since 2015, the gap has become a chasm.” The report’s ominous conclusion: “Having investment per worker much lower in Canada than abroad tells us that businesses see less opportunity in Canada and prefigures weaker earnings and living standards.”

The stark reality is that those millions of hopeful immigrants entering Canada will find a country not only unable to provide health care and housing for its citizens and temporary residents, but also with a diminishing overall standard of living. And a national government that doesn’t seem to care.

Gwyn Morgan is a retired business leader who was a director of five global corporations.

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Massive government child-care plan wreaking havoc across Ontario

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From the Fraser Institute

By Matthew Lau

It’s now more than four years since the federal Liberal government pledged $30 billion in spending over five years for $10-per-day national child care, and more than three years since Ontario’s Progressive Conservative government signed a $13.2 billion deal with the federal government to deliver this child-care plan.

Not surprisingly, with massive government funding came massive government control. While demand for child care has increased due to the government subsidies and lower out-of-pocket costs for parents, the plan significantly restricts how child-care centres operate (including what items participating centres may purchase), and crucially, caps the proportion of government funds available to private for-profit providers.

What have families and taxpayers got for this enormous government effort? Widespread child-care shortages across Ontario.

For example, according to the City of Ottawa, the number of children (aged 0 to 5 years) on child-care waitlists has ballooned by more than 300 per cent since 2019, there are significant disparities in affordable child-care access “with nearly half of neighbourhoods underserved, and limited access in suburban and rural areas,” and families face “significantly higher” costs for before-and-after-school care for school-age children.

In addition, Ottawa families find the system “complex and difficult to navigate” and “fewer child care options exist for children with special needs.” And while 42 per cent of surveyed parents need flexible child care (weekends, evenings, part-time care), only one per cent of child-care centres offer these flexible options. These are clearly not encouraging statistics, and show that a government-knows-best approach does not properly anticipate the diverse needs of diverse families.

Moreover, according to the Peel Region’s 2025 pre-budget submission to the federal government (essentially, a list of asks and recommendations), it “has maximized its for-profit allocation, leaving 1,460 for-profit spaces on a waitlist.” In other words, families can’t access $10-per-day child care—the central promise of the plan—because the government has capped the number of for-profit centres.

Similarly, according to Halton Region’s pre-budget submission to the provincial government, “no additional families can be supported with affordable child care” because, under current provincial rules, government funding can only be used to reduce child-care fees for families already in the program.

And according to a March 2025 Oxford County report, the municipality is experiencing a shortage of child-care staff and access challenges for low-income families and children with special needs. The report includes a grim bureaucratic predication that “provincial expansion targets do not reflect anticipated child care demand.”

Child-care access is also a problem provincewide. In Stratford, which has a population of roughly 33,000, the municipal government reports that more than 1,000 children are on a child-care waitlist. Similarly in Port Colborne (population 20,000), the city’s chief administrative officer told city council in April 2025 there were almost 500 children on daycare waitlists at the beginning of the school term. As of the end of last year, Guelph and Wellington County reportedly had a total of 2,569 full-day child-care spaces for children up to age four, versus a waitlist of 4,559 children—in other words, nearly two times as many children on a waitlist compared to the number of child-care spaces.

More examples. In Prince Edward County, population around 26,000, there are more than 400 children waitlisted for licensed daycare. In Kawartha Lakes and Haliburton County, the child-care waitlist is about 1,500 children long and the average wait time is four years. And in St. Mary’s, there are more than 600 children waitlisted for child care, but in recent years town staff have only been able to move 25 to 30 children off the wait list annually.

The numbers speak for themselves. Massive government spending and control over child care has created havoc for Ontario families and made child-care access worse. This cannot be a surprise. Quebec’s child-care system has been largely government controlled for decades, with poor results. Why would Ontario be any different? And how long will Premier Ford allow this debacle to continue before he asks the new prime minister to rethink the child-care policy of his predecessor?

Matthew Lau

Adjunct Scholar, Fraser Institute
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Canada Caves: Carney ditches digital services tax after criticism from Trump

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Canada caved to President Donald Trump demands by pulling its digital services tax hours before it was to go into effect on Monday.

Trump said Friday that he was ending all trade talks with Canada over the digital services tax, which he called a direct attack on the U.S. and American tech firms. The DST required foreign and domestic businesses to pay taxes on some revenue earned from engaging with online users in Canada.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” the president said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

By Sunday, Canada relented in an effort to resume trade talks with the U.S., it’s largest trading partner.

“To support those negotiations, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States,” according to a statement from Canada’s Department of Finance.

Canada’s Department of Finance said that Prime Minister Mark Carney and Trump agreed to resume negotiations, aiming to reach a deal by July 21.

U.S. Commerce Secretary Howard Lutnick said Monday that the digital services tax would hurt the U.S.

“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” he wrote on X.

Earlier this month, the two nations seemed close to striking a deal.

Trump said he and Carney had different concepts for trade between the two neighboring countries during a meeting at the G7 Summit in Kananaskis, in the Canadian Rockies.

Asked what was holding up a trade deal between the two nations at that time, Trump said they had different concepts for what that would look like.

“It’s not so much holding up, I think we have different concepts, I have a tariff concept, Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”

Shortly after taking office in January, Trump hit Canada and Mexico with 25% tariffs for allowing fentanyl and migrants to cross their borders into the U.S. Trump later applied those 25% tariffs only to goods that fall outside the free-trade agreement between the three nations, called the United States-Mexico-Canada Agreement.

Trump put a 10% tariff on non-USMCA compliant potash and energy products. A 50% tariff on aluminum and steel imports from all countries into the U.S. has been in effect since June 4. Trump also put a 25% tariff on all cars and trucks not built in the U.S.

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods paid by the person or company that imports them. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.

Trump’s tariffs give U.S.-produced goods a price advantage over imported goods, generating revenue for the federal government.

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