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From swaggering to staggering – Canada’s decline into irrelevance

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From the MacDonald Laurier Institute

By Philip Cross

It’s remarkable how much our international reputation has faded over the past 10 years, both diplomatically and economically.

It is remarkable how much attitudes about Canada have shifted, both here and abroad, over the past 10 years. A decade ago, riding the wave of a booming economy, Canada was widely admired for a banking system that had got through the 2008-2009 global financial crisis without government bailouts. Today the country’s global stature is much diminished and Canadians are rapidly losing confidence in their economic prospects.

In the years leading up to 2016 Canadians grew accustomed to global accolades. In a 2003 cover story, The Economist touted the prospects for “cool Canada,” following up in 2006 that Canada’s relative economic performance made it a “superstar” as the “only country running both current-account and budget surpluses.” Steve Poloz, then chief economist at EDC, said in 2005 the stars were aligned for Canadian firms to achieve the “productivity miracle” already realized in the U.S. In 2012, the OECD secretariat forecast Canada’s economic growth would lead the G7 nations over the next 50 years. Our AAA credit rating, stable economy and resource riches prompted the IMF in 2012 to recommend central banks hold more currency reserves in Canadian dollars, leading to headlines about “loonie set to join global currency elite” as a safe haven in turbulent times.

A Maclean’s article reporting 2011 poll results proclaimed Canada was “on top of the world” and “Canadians have never felt so upbeat about the future.” A year later, Joe O’Connor could claim in this newspaper that “Canada’s got swagger.” This confidence was reinforced when Britain hired Mark Carney in 2012 as the first foreign-born governor of the Bank of England, calling him the “best central banker of his generation.” On the global stage, in 2016 U.S. President Barack Obama told Parliament: “the world needs more Canada.”

A stable banking system was not Canada’s only perceived financial advantage. Some analysts predicted Toronto would become a major trading centre for the North American cap-and-trade carbon market. Moody’s Analytics projected Toronto’s financial services industry would employ more people than London’s by 2017. Tiff Macklem, then dean of the Rotman School, wrote an op-ed in 2016 touting Toronto’s “potential to become the leading global fintech hub.”

That was then. Today Canada’s reality is much different than people were expecting before 2015. Its finance sector is known for being “an ATM and safe deposit box for money laundering,” according to Jonathan Manthorpe in his 2019 book,  Claws of the Panda. In 2018, The Economist noted that Canada “has long had a reputation as a place to snow-wash money.” Regulation is split between federal and provincial governments and there are almost no restrictions on lawyers involved in laundering.

Instead of buoyant economic growth, the OECD last year downgraded Canada’s prospects to 2060 to dead last out of 38 nations. In a 2019 feature, The Economist noted that the top Canadian firm on Fortune’s list of the world’s largest companies ranked 241st, concluding that our “economy and business culture will have to become more American.”

Nothing has damaged Canada’s economy and global stature more than the obstacles governments have deployed to hamper our energy industry. In 2011, the late Jim Prentice, then vice-chairman of CIBC, reviewed the slew of Canadian energy projects then underway, from hydro in Labrador to Alberta’s oil sands, and concluded “no one else is bringing on energy projects on the pace and scale of Canada.” Today, by contrast, British Columbia and Quebec are struggling to meet electricity demand, while the oil sands have slashed investment.

The harm from discouraging oil and gas development was fully revealed after Russia’s 2022 invasion of Ukraine. Canada was unable to answer Europe’s desperate need for oil and gas. When German Chancellor Scholz visited Canada to plead for more natural gas, our prime minister claimed there was “no business case” to support LNG exports to Europe. Meanwhile, since March 2022, American firms have signed now fewer than 57 supply agreements with Europe for 73 million metric tons of LNG annually, according to a recent report in the Wall Street Journal.

A recent Nanos poll found even fewer Canadians (just 13 per cent) thought our global reputation had improved than were satisfied with the state of our economy (23 per cent). The Wall Street Journal said last year that Canada’s paltry defence spending should disqualify us from G7 membership, while Spain is openly lobbying to take our place. We have become irrelevant to the geopolitics of our natural allies, whether the problem at hand is the growing rivalry between the U.S. on the one hand and Russia and China on the other or the EU’s fixation on rectifying its energy and defence deficits.

More broadly, Canada has failed in its traditional role of explaining the U.S. to the rest of the world. Though it’s strange to recall, immediately after Donald Trump’s election in 2016, the hope was Trudeau would be the “Trump Whisperer,” establishing Canada as an “indispensable nation,” to quote Maclean’s Scott Gilmore. Instead, we have reverted to our traditional sense of moral superiority over Americans and now parrot the global chorus condemning the direction of U.S. politics. We have a plan for dealing with Trump, the prime minister assures us. Good luck to us with that.

Philip Cross is a senior fellow at the Macdonald-Laurier Institute.

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Trump rebuilds the ranks: Army crushes 2025 recruitment goal early

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Quick Hit:

The Army has already exceeded its 2025 recruiting goal of 61,000 troops—four months ahead of schedule—as the Trump administration’s rollback of woke policies draws thousands back to military service.

Key Details:

  • The Army’s 2025 recruiting goal was 61,000—higher than last year’s 55,000—and has already been met with more than four months remaining in the fiscal year. Officials report a 56% increase in average daily enlistment rates over last year.

  • Army Secretary Daniel Driscoll thanked Trump and Hegseth, saying their “decisive leadership” and “putting soldiers first” contributed to the record-breaking numbers.

  • Hegseth has aggressively pushed to eliminate leftist cultural initiatives in the military, including moves to administratively separate transgender troops and rename a Navy ship previously dedicated to gay rights icon Harvey Milk.

Diving Deeper:

The U.S. Army has reached a major milestone ahead of schedule—signing up 61,000 new recruits in fiscal year 2025, effectively smashing its annual goal months before the September 30th deadline. The achievement marks a dramatic shift after years of underperformance and is being touted as a vindication of the Trump administration’s efforts to reorient the military away from progressive social engineering and back toward warfighting readiness.

In a Wall Street Journal op-ed Tuesday, Army Secretary Daniel Driscoll praised the recruiting corps, attributing their success to both boots-on-the-ground determination and high-level support. “I’m incredibly proud of our U.S. Army recruiters and drill sergeants,” he said. “Their colossal efforts and dedication to duty helped the U.S. Army accomplish our FY25 annual recruiting goal a full four months ahead of schedule.” Driscoll continued, “I want to thank the commander in chief, President Trump, and Secretary of Defense Hegseth for their decisive leadership and support.”

The Army’s target of 61,000 recruits was a notable jump from last year’s 55,000 goal. Officials say that as of this month, daily enlistment figures are tracking 56% higher than the previous year.

Driving the increase, many believe, is the sweeping overhaul of military culture underway under Defense Secretary Pete Hegseth. Hegseth has made no secret of his intent to steer the armed forces away from what he calls “woke and weak” policies. That includes the Pentagon’s past focus on gender identity politics, climate initiatives, and mandatory diversity training—priorities Hegseth sees as incompatible with combat readiness.

“We are leaving wokeness and weakness behind,” Hegseth declared during remarks last month at the Special Operations Forces Week convention in Tampa. “No more pronouns, no more climate change obsession, no more emergency vaccine mandates. No more dudes in dresses. We’re done with that s***.”

Hegseth emphasized a military rooted in “lethality, meritocracy, accountability, standards and readiness,” and added pointedly, “Our combat formations don’t need to look like Harvard University—they need to look like killers.”

In line with that shift, Hegseth also this week ordered the Navy to remove Harvey Milk’s name from a replenishment ship. The vessel had been named in honor of Milk, a gay rights activist and former Navy officer who was elected to the San Francisco Board of Supervisors in 1977 before being assassinated a year later.

The directive aligns with what Hegseth calls “warrior culture” and the broader mission to reflect Trump administration priorities across the military’s assets and institutions. The Pentagon has yet to confirm a new name for the USNS Harvey Milk, and a spokesperson said reviews are ongoing.

The Army is set to mark its 250th anniversary on June 14th—a symbolic moment, officials say, as it reclaims its footing and begins to rebuild the force from a position of strength.

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armed forces

New Trump-Pentagon ad resets mission: end wokeness, win wars

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Quick Hit:

The Pentagon released a dramatic new ad Sunday featuring President Trump and Defense Secretary Pete Hegseth, highlighting the end of woke policies in the military and a renewed focus on strength, discipline, and warfighting.

Key Details:

  • The ad, titled Peace through Strength, features intense training and combat scenes, underscored by speeches from Trump and Hegseth.

  • “No more distraction, no more electric tanks, no more gender confusion, no more climate change worship,” Hegseth proclaims, signaling a sharp pivot from recent Pentagon policies.

  • Trump promises that under his leadership, U.S. military success will be defined “not only by the battles we win, but also by the wars we end,” calling for peace built on American strength.

Diving Deeper:

The Pentagon launched a forceful new recruitment and branding campaign over Memorial Day weekend, spotlighting the military’s return to fundamentals under the leadership of Defense Secretary Pete Hegseth and President Donald Trump. The minute-long ad, titled Peace through Strength, premiered Sunday at the Coca-Cola 600 NASCAR event and was simultaneously posted to the Department of Defense’s social media accounts.

Using fast-paced training footage and dramatic music, the ad showcases troops in battlefield simulations and highlights a no-nonsense message from the Trump administration. Hegseth opens with a clear declaration: “No more distraction, no more electric tanks, no more gender confusion, no more climate change worship. We are laser-focused on our mission of warfighting.”

The video includes remarks from Trump affirming his vision for a military built on discipline and deterrence. “Through our power and might, we will lead the world to peace,” he says. “Our friends will respect us. Our enemies will fear us. And the whole world will admire the unrivaled greatness of the United States military.”

The ad was produced using previously recorded training footage, according to a Pentagon spokesperson who spoke to The New York Post.

Hegseth also makes a direct appeal to America’s youth, praising “incredible” young men and women “giving up the best years of their lives” to defend the country. He closes the ad with a quote that underscores the values behind the mission: “We don’t fight because we hate what’s in front of us. We fight because we love what’s behind us.”

The backdrop to the ad is a recruiting crisis that had plagued the military under Biden. In fiscal year 2022, the U.S. Army fell short by roughly 25% of its enlistment target. Similar gaps were recorded across other branches in 2023, with both the Navy and Air Force reporting thousands fewer recruits than needed.

Reversing that trend has been a key objective for Hegseth. He has made it clear that returning to a warrior culture—and scrapping the distractions of social experimentation—is central to solving the problem.

The ad’s release comes just days after the House passed the One Big Beautiful Bill Act, which adds $150 billion in new military funding. That package includes investments in shipbuilding, defense modernization, and Trump’s space-based Golden Dome missile defense initiative.

Together, the new ad and the legislation serve as a one-two punch from the Trump administration, signaling a full-spectrum push to rebuild, rearm, and reinspire the U.S. Armed Forces.

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