Business
Canadians face massive uncertainly and turbulence in 2025
From the Fraser Institute
As the new year beckons, Canadian policymakers, workers and consumers are staring at a turbulent and uncertain economic landscape. While the economy has been growing, the population has been increasing faster—leading to a two-year slide in economic output and real income, measured on a per-person basis. The result has been a visible decline in Canadian living standards amid a largely stagnant economy.
Looking ahead to 2025, Canada faces two big uncertainties. The first is linked to the return of Donald Trump who has made a host of jaw-dropping promises including a pledge to slap a 25 per cent tariff on all merchandise imports from Canada and Mexico on day one of his administration. Should he follow through with that plan, our economy will be plunged into recession.
Last year, Canada sold $593 billion of goods to the United States, along with more than $85 billion in “services,” together representing more than three-quarters of our total international exports. The Canadian industries that will take the biggest hit from possible Trumpian tariffs include energy, automobile and parts manufacturing, wood products, all types of machinery and equipment, consumer products, minerals and metals and agri-food.
While the threatened across-the-board tariffs may never materialize, it’s a safe bet that Trump’s presidency portends rocky times for the Canada-U.S. relationship. The near-certainty of increased U.S. restrictions on Canadian exports, coupled with the likelihood of tax cuts and sweeping regulatory reforms, means many larger and mid-sized Canadian companies will be tempted to redirect their capital and business growth ambitions to the south, thereby dampening domestic investment. In response, governments in Ottawa and the provinces should urgently improve the environment for investment at home.
Another source of economic uncertainty is the federal government’s decision to ratchet back immigration. Ottawa’s about-face on immigration ranks as one of the most dramatic reversals of Canadian public policy in half a century. Under the Trudeau Liberals, Canada has become wholly reliant on immigration-fuelled labour-force growth to drive the economy, as productivity—the other key contributor to long-term economic growth—has stalled. Higher immigration has indeed boosted economic activity, albeit without delivering gains in per-person income.
Now, federal policymakers intend to cut permanent immigration, impose sharp curbs on international students, and somehow engineer the departure of 1.3 million temporary residents currently living in Canada—all over the next two years. Exactly how and to what extent this will play out is unclear. After three years of rapid population growth, Canada could experience a flat or even slightly declining population. Lower immigration is necessary after a period of almost uncontrolled inflows, but zero or negative population growth will detract from economy-wide spending and put a dent in labour supply. The outcome will be slower economic growth in 2025-26 than otherwise would be the case.
Closer to home, the Trudeau government presides over a structurally weak economy where much of the growth has been coming from a ballooning public sector while large swathes of the business community shrink or sit on the sidelines. On Trudeau’s watch, government debt has soared, business investment has been chronically sluggish, and Canada’s ranking on surveys of global competitiveness has dropped. We can do better.
Rather than continuing to expand the size of government, policymakers should aim to revitalize the private-sector economy that still produces most of the country’s output and accounts for the bulk of Canada’s jobs, exports and innovations.
Business
Some Of The Wackiest Things Featured In Rand Paul’s New Report Alleging $1,639,135,969,608 In Gov’t Waste

From the Daily Caller News Foundation
Republican Kentucky Sen. Rand Paul released the latest edition of his annual “Festivus” report Tuesday detailing over $1 trillion in alleged wasteful spending in the U.S. government throughout 2025.
The newly released report found an estimated $1,639,135,969,608 total in government waste over the past year. Paul, a prominent fiscal hawk who serves as the chairman of the Senate Homeland Security and Governmental Affairs Committee, said in a statement that “no matter how much taxpayer money Washington burns through, politicians can’t help but demand more.”
“Fiscal responsibility may not be the most crowded road, but it’s one I’ve walked year after year — and this holiday season will be no different,” Paul continued. “So, before we get to the Feats of Strength, it’s time for my Airing of (Spending) Grievances.”
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The 2025 “Festivus” report highlighted a spate of instances of wasteful spending from the federal government, including the Department of Health and Human Services (HHS) spent $1.5 million on an “innovative multilevel strategy” to reduce drug use in “Latinx” communities through celebrity influencer campaigns, and also dished out $1.9 million on a “hybrid mobile phone family intervention” aiming to reduce childhood obesity among Latino families living in Los Angeles County.
The report also mentions that HHS spent more than $40 million on influencers to promote getting vaccinated against COVID-19 for racial and ethnic minority groups.
The State Department doled out $244,252 to Stand for Peace in Islamabad to produce a television cartoon series that teaches children in Pakistan how to combat climate change and also spent $1.5 million to promote American films, television shows and video games abroad, according to the report.
The Department of Veterans Affairs (VA) spent more than $1,079,360 teaching teenage ferrets to binge drink alcohol this year, according to Paul’s report.
The report found that the National Science Foundation (NSF) shelled out $497,200 on a “Video Game Challenge” for kids. The NSF and other federal agencies also paid $14,643,280 to make monkeys play a video game in the style of the “Price Is Right,” the report states.
Paul’s 2024 “Festivus” report similarly featured several instances of wasteful federal government spending, such as a Las Vegas pickleball complex and a cabaret show on ice.
The Trump administration has been attempting to uproot wasteful government spending and reduce the federal workforce this year. The administration’s cuts have shrunk the federal workforce to the smallest level in more than a decade, according to recent economic data.
Festivus is a humorous holiday observed annually on Dec. 23, dating back to a popular 1997 episode of the sitcom “Seinfeld.” Observance of the holiday notably includes an “airing of grievances,” per the “Seinfeld” episode of its origin.
Alberta
A Christmas wish list for health-care reform
From the Fraser Institute
By Nadeem Esmail and Mackenzie Moir
It’s an exciting time in Canadian health-care policy. But even the slew of new reforms in Alberta only go part of the way to using all the policy tools employed by high performing universal health-care systems.
For 2026, for the sake of Canadian patients, let’s hope Alberta stays the path on changes to how hospitals are paid and allowing some private purchases of health care, and that other provinces start to catch up.
While Alberta’s new reforms were welcome news this year, it’s clear Canada’s health-care system continued to struggle. Canadians were reminded by our annual comparison of health care systems that they pay for one of the developed world’s most expensive universal health-care systems, yet have some of the fewest physicians and hospital beds, while waiting in some of the longest queues.
And speaking of queues, wait times across Canada for non-emergency care reached the second-highest level ever measured at 28.6 weeks from general practitioner referral to actual treatment. That’s more than triple the wait of the early 1990s despite decades of government promises and spending commitments. Other work found that at least 23,746 patients died while waiting for care, and nearly 1.3 million Canadians left our overcrowded emergency rooms without being treated.
At least one province has shown a genuine willingness to do something about these problems.
The Smith government in Alberta announced early in the year that it would move towards paying hospitals per-patient treated as opposed to a fixed annual budget, a policy approach that Quebec has been working on for years. Albertans will also soon be able purchase, at least in a limited way, some diagnostic and surgical services for themselves, which is again already possible in Quebec. Alberta has also gone a step further by allowing physicians to work in both public and private settings.
While controversial in Canada, these approaches simply mirror what is being done in all of the developed world’s top-performing universal health-care systems. Australia, the Netherlands, Germany and Switzerland all pay their hospitals per patient treated, and allow patients the opportunity to purchase care privately if they wish. They all also have better and faster universally accessible health care than Canada’s provinces provide, while spending a little more (Switzerland) or less (Australia, Germany, the Netherlands) than we do.
While these reforms are clearly a step in the right direction, there’s more to be done.
Even if we include Alberta’s reforms, these countries still do some very important things differently.
Critically, all of these countries expect patients to pay a small amount for their universally accessible services. The reasoning is straightforward: we all spend our own money more carefully than we spend someone else’s, and patients will make more informed decisions about when and where it’s best to access the health-care system when they have to pay a little out of pocket.
The evidence around this policy is clear—with appropriate safeguards to protect the very ill and exemptions for lower-income and other vulnerable populations, the demand for outpatient healthcare services falls, reducing delays and freeing up resources for others.
Charging patients even small amounts for care would of course violate the Canada Health Act, but it would also emulate the approach of 100 per cent of the developed world’s top-performing health-care systems. In this case, violating outdated federal policy means better universal health care for Canadians.
These top-performing countries also see the private sector and innovative entrepreneurs as partners in delivering universal health care. A relationship that is far different from the limited individual contracts some provinces have with private clinics and surgical centres to provide care in Canada. In these other countries, even full-service hospitals are operated by private providers. Importantly, partnering with innovative private providers, even hospitals, to deliver universal health care does not violate the Canada Health Act.
So, while Alberta has made strides this past year moving towards the well-established higher performance policy approach followed elsewhere, the Smith government remains at least a couple steps short of truly adopting a more Australian or European approach for health care. And other provinces have yet to even get to where Alberta will soon be.
Let’s hope in 2026 that Alberta keeps moving towards a truly world class universal health-care experience for patients, and that the other provinces catch up.
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