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Federal government should stay in its lane

Published

1 month ago

5 minute read

From the Fraser Institute

By Jason Clemens and Jake Fuss

There’s been more talk this year than normal about the need for governments, particularly Ottawa, to “stay in their own lane.” But what does this actually mean when it comes to the practical taxing, spending and regulating done by provincial and federal governments?

The rules of the road, so to speak, are laid out in sections 91 and 92 of the Canadian Constitution. As noted economist Jack Mintz recently explained, the federal government was allocated responsibility for areas of national priority such as defence and foreign relations, criminal law, and national industries such as transportation, communication and financial institutions. The provinces, on the other hand, were allotted responsibilities deemed to be closer to the people such as health care, education, social services and municipalities.

Simply put, the principle of staying in one’s lane means the federal and provincial governments respect one another’s areas of responsibility and work collaboratively when there are joint interests and/or overlapping responsibilities such as environmental issues.

The experience of the mid-1990s through to roughly 2015 shows the tangible benefits of having each level of government focus on their areas of responsibility. Recall that the Liberal Chrétien government fundamentally removed itself from several areas of provincial jurisdiction, particularly welfare and social services, in its historic 1995 budget.

But the election of the Trudeau government in 2015 represented a marked change in approach. The tax and spending policies of the Trudeau government, which broke a 20-year consensus, favoured ever-increasing spending, higher taxes and much higher levels of borrowing. Federal spending (excluding interest payments on debt) has increased from $273.6 billion in 2015-16 when Trudeau first took office to an expected $483.6 billion this year, an increase of 76.7 per cent.

Federal taxes on most Canadians, including the middle class, have also increased despite the Trudeau government promising lower taxes. And despite the tax increases, borrowing has also increased. Consequently, the national debt has ballooned from $1.1 trillion when Trudeau took office to an estimated $2.1 trillion this year.

Despite these massive spending increases, there are serious questions about core areas of federal responsibility. Consider, for example, the major problems with Canada’s defence spending.

Canada has been called out by both NATO officials and our counterparts within NATO for failing to meet our commitments. As a NATO country, Canada is committed to spend 2 per cent of the value of our economy (GDP) annually on defence. The latest estimate is that Canada will spend 1.4 per cent of GDP on defence and we’re the only country without a plan to reach the target by 2030. The Parliamentary Budget Officer recently estimated that to reach our NATO commitment, defence spending would have to increase by $21.3 billion in 2029-30, which given the state of federal finances would entail much higher borrowing and/or higher taxes.

So, while the Trudeau government has increased federal spending markedly, it has not spent those funds on core areas of federal responsibility. Instead, Trudeau’s Ottawa has increasingly involved itself in provincial areas of responsibility. Consider three new national initiatives that are all squarely provincial areas of responsibility: pharmacare, $10-a-day daycare and dental care.

And the amounts involved in these programs are not incidental. In Budget 2021, the Trudeau government announced $27.2 billion over five years for the new $10-a-day daycare initiative, Budget 2023 committed $13.0 billion for the dental benefit over five years, and Budget 2024 included a first step towards national pharmacare with spending of $1.5 billion over five years to cover most contraceptives and some diabetes medications.

So, while the Trudeau government has deprioritized core areas of federal responsibility such as defence, it has increasingly intruded on areas of provincial responsibility.

Canada works best when provincial and federal governments recognize and adhere to their roles within Confederation as was more the norm for more than two decades. The Trudeau government’s intrusion into provincial jurisdiction has increased tensions with the provinces, likely created unsustainable new programs that will ultimately put enormous financial pressure on the provinces, and led to a less well-functioning federal government. Staying in one’s lane makes sense for both driving and political governance.

Authors:

Jason Clemens
Executive Vice President, Fraser Institute
Jake Fuss
Director, Fiscal Studies, Fraser Institute
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Elon Musk Warns Harris Will Try To Shut Down X ‘By Any Means Possible’ If Elected

Published on October 8, 2024

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From the Daily Caller News Foundation 

 

By Harold Hutchison

Tesla CEO and X owner Elon Musk said Vice President Kamala Harris will launch “lawfare” in an effort to shut down X “by any means possible” if she wins the 2024 presidential election.

Musk sat down for a two-hour interview with former Fox News host Tucker Carlson, a co-founder of the Daily Caller and Daily Caller News Foundation, released on Monday. Musk said that should Harris win the presidency, he anticipated that he and his companies would face legal action.

“If she wins, how can they let X continue in its current form, in its current role in American society?” Carlson asked Musk about the future of the social network if Harris wins the presidency.

“They won’t,” Musk responded. “They will try to shut it down by any means possible.”

WATCH:

Former Secretary of State Hillary Clinton called for Americans to be “criminally charged” for spreading what she viewed as disinformation during a Sept. 17 interview with MSNBC host Rachel Maddow, and warned that a lack of censorship was causing a loss of “total control” in a Saturday interview with CNN host Mike Smerconish.

Carlson asked Musk to explain what he meant when he said a Harris administration would use “any means possible” to shut down X.

“They might try to pass laws,” Musk said. “They’ll try to prosecute the company, prosecute me. The amount of lawfare we’ve seen taking place is outrageous.”

Musk noted the Biden administration had sued SpaceX for failing to hire asylum seekers

“I mean… the Department of Justice, for example, launched a huge lawsuit against SpaceX for failing to hire asylum seekers,” Musk continued as Carlson expressed shock. “Not those granted asylum, but asylum seekers. Now, there’s also a law called International Traffic in Arms Regulations that because SpaceX develops advancements in technology that can be used in nuclear ICBMs… we have to be careful who we hire. We can only hire a permanent resident or a citizen.”

The Justice Department announced the suit against SpaceX in August 2023, claiming the company “discouraged asylees and refugees from applying to the company” in legal documents. The Equal Employment Opportunity Commission (EEOC) sued Tesla in September 20203. claiming black employees faced harassment and threats, including nooses.

The Biden administration launched other investigations and lawsuits into companies Musk is tied to, including Tesla, since he purchased Twitter in 2022. Musk predicted a dirty tricks campaign in May 2022, as his purchase of Twitter was in progress.

Musk has been an outspoken supporter of former President Donald Trump’s bid to return to the White House, funding America PAC, speaking at Trump’s Saturday rally at Butler, Pennsylvania, at the site of an attempted assassination of the former president and donating to efforts to elected House GOP candidates.

Harris did not immediately respond to a request for comment from the Daily Caller News Foundation.

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Business

Toyota to scrap DEI policies following social media exposé

Published on October 7, 2024

By

From LifeSiteNews

By Stephen Kokx

Toyota will no longer participate in the Corporate Equality Index amid public pressure after anti-woke activist Robby Starbuck revealed the company’s left-wing policies.

Just days after Toyota ended its sponsorship of the Olympics, the Japanese car maker put a halt to supporting LGBT events and said it also planned to scrap Diversity, Equity, and Inclusion (DEI) policies.

In a memo issued to its 50,000 U.S.-based employees and 1,500 dealerships last Thursday, Toyota reportedly said that it will continue to “encourage an inclusive environment where diversity of thought can flourish” but that its primary focus will be on “professional development, networking, mentoring and volunteering” initiatives for staff.

Among other changes, Toyota will no longer participate in the pro-LGBT Human Rights Campaign’s Corporate Equality Index. It will also shift its public presence toward community activities that “align with STEM (Science, Technology, Engineering, and Math) education and workforce readiness.”

The move comes amid public pressure after anti-woke activist Robby Starbuck exposed the company’s left-wing policies on social media.

Starbuck had revealed that Toyota sponsored an event featuring drag queens for children. He also reported that it backed the pro-LGBT “Equality Act” and that it worked with the radical Human Rights Campaign to oppose laws that ban sex change operations for minors, among other left-wing efforts.

Starbuck’s previous reporting on corporate giants such as John Deere, Lowe’s, Harley Davidson, and others effectively forced them to scale back or drop their own DEI initiatives altogether. Former GOP presidential candidate Mike Huckabee thanked Starbuck for his efforts on X.

Along with Panasonic and Bridgestone, Toyota announced that it is terminating its $835 million sponsorship of the Olympics that begin in 2015. The Associated Press reported that the three companies were among the 15 major sponsors of the Games, which featured a blasphemous depiction of the Last Supper this year in Paris during the opening ceremony.

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