Business
Economic progress stalling for Canada and other G7 countries
From the Fraser Institute
By Jake Fuss
For decades, Canada and other countries in the G7 have been known as the economic powerhouses of the world. They generally have had the biggest economies and the most prosperous countries. But in recent years, poor government policy across the G7 has contributed to slowing economic growth and near-stagnant living standards.
Simply put, the Group of Seven countries—Canada, France, Germany, Italy, Japan, the United Kingdom and the United States—have become complacent. Rather than build off past economic success by employing small governments that are limited and efficient, these countries have largely pursued policies that increase or maintain high taxes on families and businesses, increase regulation and grow government spending.
Canada is a prime example. As multiple levels of government have turned on the spending taps to expand programs or implement new ones, the size of total government has surged ever higher. Unsurprisingly, Canada’s general government spending as a share of GDP has risen from 39.3 per cent in 2007 to 42.2 per cent in 2022.
At the same time, federal and provincial governments have increased taxes on professionals, businessowners and entrepreneurs to the point where the country’s top combined marginal tax rate is now the fifth-highest among OECD countries. New regulations such as Bill C-69, which instituted a complex and burdensome assessment process for major infrastructure projects and Bill C-48, which prohibits producers from shipping oil or natural gas from British Columbia’s northern coast, have also made it difficult to conduct business.
The results of poor government policy in Canada and other G7 countries have not been pretty.
Productivity, which is typically defined as economic output per hour of work, is a crucial determinant of overall economic growth and living standards in a country. Over the most recent 10-year period of available data (2013 to 2022), productivity growth has been meagre at best. Annual productivity growth equaled 0.9 per cent for the G7 on average over this period, which means the average rate of growth during the two previous decades (1.6 per cent) has essentially been chopped in half. For some countries such as Canada, productivity has grown even slower than the paltry G7 average.
Since productivity has grown at a snail’s pace, citizens are now experiencing stalled improvement in living standards. Gross domestic product (GDP) per person, a common indicator of living standards, grew annually (inflation-adjusted) by an anemic 0.7 per cent in Canada from 2013 to 2022 and only slightly better across the G7 at 1.3 per cent. This should raise alarm bells for policymakers.
A skeptic might suggest this is merely a global phenomenon. But other countries have fared much better. Two European countries, Ireland and Estonia, have seen a far more significant improvement than G7 countries in both productivity and per-person GDP.
From 2013 to 2022, Estonia’s annual productivity has grown more than twice as fast (1.9 per cent) as the G7 countries (0.9 per cent). Productivity in Ireland has grown at a rapid annual pace of 5.9 per cent, more than six times faster than the G7.
A similar story occurs when examining improvements in living standards. Estonians enjoyed average per-person GDP growth of 2.8 per cent from 2013 to 2022—more than double the G7. Meanwhile, Ireland’s per-person GDP has surged by 7.9 per cent annually over the 10-year period. To put this in perspective, living standards for the Irish grew 10 times faster than for Canadians.
But this should come as no surprise. Governments in Ireland and Estonia are smaller than the G7 average and impose lower taxes on individuals and businesses. In 2019, general government spending as a percentage of GDP averaged 44.0 per cent for G7 countries. Spending for governments in both Estonia and Ireland were well below this benchmark.
Moreover, the business tax rate averaged 27.2 per cent for G7 countries in 2023 compared to lower rates in Ireland (12.5 per cent) and Estonia (20.0 per cent). For personal income taxes, Estonia’s top marginal tax rate (20.0 per cent) is significantly below the G7 average of 49.7 per cent. Ireland’s top marginal tax rate is below the G7 average as well.
Economic progress has largely stalled for Canada and other G7 countries. The status quo of government policy is simply untenable.
Author:
Business
Canada’s combative trade tactics are backfiring
This article supplied by Troy Media.
Defiant messaging may play well at home, but abroad it fuels mistrust, higher tariffs and a steady erosion of Canada’s agri-food exports
The real threat to Canadian exporters isn’t U.S. President Donald Trump’s tariffs, it’s Ottawa and Queen’s Park’s reckless diplomacy.
The latest tariff hike, whether triggered by Ontario’s anti-tariff ad campaign or not, is only a symptom. The deeper problem is Canada’s escalating loss of credibility at the trade table. Washington’s move to raise duties from 35 per cent to 45 per cent on nonCUSMA imports (goods not covered under the Canada-United States-Mexico Agreement, the successor to NAFTA) reflects a diplomatic climate that is quickly souring, with very real consequences for Canadian exporters.
Some analysts argue that a 10-point tariff increase is inconsequential. It is not. The issue isn’t just what is being tariffed; it is the tone of the relationship. Canada is increasingly seen as erratic and reactive, negotiating from emotion rather than strategy. That kind of reputation is dangerous when dealing with the U.S., which remains Canada’s most important trade partner by a wide margin.
Ontario Premier Doug Ford’s stand up to America messaging, complete with a nostalgic Ronald Reagan cameo, may have been rooted in genuine conviction. Many Canadians share his instinct to defend the country’s interests with bold language. But in diplomacy, tone often outweighs intent. What plays well domestically can sound defiant abroad, and the consequences are already being felt in boardrooms and warehouses across the country.
Ford’s public criticisms of companies such as Crown Royal, accused of abandoning Ontario, and Stellantis, which recently announced it will shift production of its Jeep Compass from Brampton to Illinois as part of a US$13 billion U.S. investment, may appeal to voters who like to see politicians get tough. But those theatrics reinforce the impression that Canada is hostile to
international investors. At a time when global capital can move freely, that perception is damaging. Collaboration, not confrontation, is what’s needed most to secure investment in Canada’s economy.
Such rhetoric fuels uncertainty on both sides of the border. The results are clear: higher tariffs, weaker investor confidence and American partners quietly pivoting away from Canadian suppliers.
Many Canadian food exporters are already losing U.S. accounts, not because of trade rules but because of eroding trust. Executives in the agri-food sector are beginning to wonder whether Canada can still be counted on as a reliable partner, and some have already shifted contracts southward.
Ford’s political campaigns may win applause locally, but Washington’s retaliatory measures do not distinguish between provinces. They hit all exporters, including Canada’s food manufacturers that rely heavily on the U.S. market, which purchases more than half of Canada’s agri-food exports. That means farmers, processors and transportation companies across the country are caught in the crossfire.
Those who believe the new 45 per cent rate will have little effect are mistaken. Some Canadian importers now face steeper duties than competitors in Vietnam, Laos or even Myanmar. And while tariffs matter, perception matters more. Right now, the optics for Canada’s agri-food sector are poor, and once confidence is lost, it is difficult to regain.
While many Canadians dismiss Trump as unpredictable, the deeper question is what happened to Canada’s once-cohesive Team Canada approach to trade. The agri-food industry depends on stability and predictability. Alienating our largest customer, representing 34 per cent of the global consumer market and millions of Canadian jobs tied to trade, is not just short-sighted, it’s economically reckless.
There is no trade war. What we are witnessing is an American recalibration of domestic fiscal policy with global consequences. Canada must adapt with prudence, not posturing.
The lesson is simple: reckless rhetoric is costing Canada far more than tariffs. It’s time to change course, especially at Queen’s Park.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain
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
Business
Flying saucers, crystal paperweights and branded apples: inside the feds’ promotional merch splurge
By Jen Hodgson
“It’s like the government had a contest to see which department could come up with the dumbest way to spend taxpayers’ money and they all won”
Bamboo toothbrushes and beeswax wraps. Temporary tattoos and hockey pucks. Maple candy and “chocolat bon bons.” Tractor-shaped air fresheners and Yukon soap. Moccasins and socks.
The feds seem eager to slap a logo on just about anything and pay any price to make it happen. Federal departments and Crown corporations spent about $13 million on branded promotional items since January 2022, according to government records obtained by the Canadian Taxpayers Federation.
“It’s like the government had a contest to see which department could come up with the dumbest way to spend taxpayers’ money and they all won,” said Franco Terrazzano, CTF Federal Director. “This is what happens when you have too many bureaucrats with too many tax dollars.”
The government shelled out $207,000 on various hats across all departments, $607,000 on different types of bags and $40,500 on Yeti and Stanley drinkware.
In an apparent shout out to former prime minister Justin Trudeau, the feds collectively splurged on $51,800 worth of socks.
The feds spent $25,600 on maple syrup and maple products.
The government released the data in response to an order paper question submitted by Conservative MP Michelle Rempel Garner (Calgary Nose Hill). Rempel Garner asked for records of all branded or promotional products purchased by departments or Crown corporations from Jan. 1, 2022, to June 6, 2025.
The CTF reviewed the 900-page release package – a virtual catalogue of capricious spending.
The Royal Canadian Mounted Police was the biggest spender by far, with a merch price tag of $4 million. However, the Mounties declined to submit a detailed inventory of expenditures.
Canadian Heritage was next in line for the feds’ spending spree. The department dropped about $2 million on purchases including branded hockey pucks, candle holders and lip balm. And not even the good kind of lip balm – it’s specifically “without sun protection.”
National Defence spent nearly $1.4 million on branded merch. That works out to about $34,000 on average each month.
Farm Credit Canada spent a total of $870,500, including $32,600 on tractor shaped air fresheners.
Export Development Canada blew $4,100 on climate change card games, $3,400 on Yukon soap, $10,700 on apple peel notebooks with bamboo pens, $4,500 on branded apples and $1,100 on “chocolat bon bons.”
Destination Canada spent $26,900 on moccasins, $13,300 on candles and $9,000 on charcuterie boards. Natural Resources Canada spent $3,200 on phone wallets and $1,350 on temporary tattoos.
VIA Rail spent $11,400 on “Pride” paraphernalia and $2,600 on belt bags. The Department of Immigration spent $12,000 on bamboo toothbrushes and terry towels for various “outreach events” and the Masters Indigenous Games.
The Royal Canadian Mint wrote a cheque for $41,800 for leather journals and laser pens. The National Capital Commission spent $12,000 on bicycle lights. Canada Lands Company spent $1,800 on flying saucers.
Canadian Race Relations Foundation dropped $2,400 on wool-blend branded toques and $2,800 for branded fleece blankets – for a board meeting.
The list goes on and on.
Prairies Economic Development Canada dipped into the public purse to the tune of $1,300 for bamboo cutlery and $3,800 for beeswax wraps. Pacific Economic Development Canada dropped $12,000 on beeswax wraps alone.
But remember, it’s hard being a government bureaucrat. Across all departments, the feds bought $11,900 worth of stress balls.
“Government bureaucrats dropping thousands of dollars on stress balls really stresses taxpayers out,” Terrazzano said. “Unless the temporary tattoos show the national debt to remind bureaucrats to cut spending, it’s a waste of money.
“Prime Minister Mark Carney needs to tell government bureaucrats to knock it off with the card games, charcuterie boards, laser pens and flying saucers.”
Some federal agencies refused to spill the beans on their branding budgets, leaving taxpayers to imagine a clandestine empire of logoed mugs and pens.
CBC/Radio-Canada did not bother to track their spending on promotional materials at all. The CBC claims it didn’t have time to provide accurate information in response to the request.
The lack of transparency didn’t end there. The Canada Border Services Agency and the National Arts Centre also claimed they lacked the time and resources to submit expenditure details.
The Canada Mortgage and Housing Corporation had “nothing to report.” Parks Canada dropped $847,000 on promotional items, but provided no details on itemized spending.
The Canadian Security Intelligence Services confirmed it purchased promotional material, but declined to say what it bought or how much it spent – because, you know, it’s probably spy stuff.
“Carney said he’s going to cut waste and if he’s serious he would put the government’s promotional merch spending spree on the chopping block,” Terrazzano said. “Anyone who claims there’s no fat to cut needs to be reminded that the government is spending millions of dollars on branded merch.”
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