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Trudeau’s Gone So Why Does Everything Still Feel Broken?

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From the Frontier Centre for Public Policy

By Lee Harding

Lee Harding skewers Ottawa’s déjà vu politics: Trump is tariffing Canada into submission again, Carney’s Liberals are flailing, and Poilievre’s back—like none of early 2025’s drama ever happened.

The Liberals swapped leaders, but not direction, and the country is paying for it

New year, new prime minister—same failures. Mark Carney’s Ottawa looks just as weak and directionless as it did under Justin Trudeau, and Canadians are paying the price.

Despite the drama of 2025—Trudeau’s resignation, Carney’s rise to Liberal leader, an election fought on promises of competence, and Pierre Poilievre’s shock defeat—Canada has ended up right back where it started.

Poilievre is already headed back to the House after a resounding byelection win in Battle River–Crowfoot on Aug. 18, pulling nearly 80 per cent of the vote. But what’s changed? Carney’s shine has already worn off, and fewer Canadians than ever believe he can handle the country’s domestic or international challenges. Less than four months into office, the renewed Liberal government has left Canada weaker abroad and poorer at home.

The Carney honeymoon ended fast. Days after his victory, he posed alongside U.S. President Donald Trump, mimicking Trump’s signature “thumbs up.” Trump took credit for Carney’s win and revived his “51st state” rhetoric. Carney’s team scrambled to downplay the moment, but the damage was done. This was the man who promised to stand up to Trump, not stand beside him.

Worse, Canadians soon learned that Carney had quietly removed most tariffs on American goods during the campaign, a politically clever move that stripped Canada of any leverage. As a result, Trump’s administration steamrolled Ottawa with 50 per cent tariffs on Canadian steel, aluminum and copper, and 35 per cent on goods not covered by CUSMA.

While Canada floundered, global competitors moved in. The U.K., European Union, Japan, South Korea, Vietnam and the Philippines all inked new trade deals with Washington. Once seen as a preferred partner, Canada is now on the outside looking in.

Diplomatic humiliation followed. On the very day Poilievre won his byelection, Trump convened NATO allies to discuss a peace framework for Ukraine and Russia—Canada wasn’t invited. Once proud of our role as an honest broker and middle-power influencer, we’re now irrelevant.

Carney’s much-hyped economic expertise has also fallen flat. He appeared willing to govern without a federal budget—an act of arrogance or incompetence, take your pick. After backlash, he promised a fall budget, but there’s still no credible plan to rein in deficits or restore confidence. Even Air Canada workers ignored his calls to return to work.

A long-overdue defence spending pledge of $8 billion has been mostly swallowed by decarbonization programs, doing little for national security. Meanwhile, the government’s environmental agenda continues to punish the economy. Slashing the consumer carbon tax to zero was a headline grabber, but industrial carbon taxes and regulatory burdens continue to rise, choking off investment, productivity and competitiveness.

Western alienation is deepening. The Carney government’s shortcut for approving energy projects, fast-tracking anything “in the national interest,” politicizes resource development and creates uncertainty. Carney has even hinted that Indigenous groups may gain veto power, further muddying the investment landscape.

The economy is stagnant. Canada’s international stature is diminished. The West remains ignored. For many Canadians, Carney looks like nothing more than Trudeau 2.0.

Incredibly, we’re right back where we were when the year began. Trump is blocking our exports. The prime minister can’t stop him. And Pierre Poilievre is back in Parliament, sharpening his attacks.

The only real difference? The NDP doesn’t have a leader. But once it does, it will be eager to bring down the government and try to rebuild its own credibility. Political change is coming—but not just yet.

Lee Harding is a research fellow with the Frontier Centre for Public Policy.

Bruce Dowbiggin

Where Carney’s Canada Now Stands : Elbows Up. Pants Down.

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Our weekly Monday column is nominally a sports column. But sometimes we are lured by a sporting theme other than on the field. And with the capitulation of Mark Carney’s cringeworthy Elbows Up theme this week we can now safely reflect on the impact of the nation’s hockey obsession on tariff wars.

For those who don’t know by now, Carney’s Elbows Up meme popularized in cringeworthy commercials with actor Mike Myers was a reference to going into the corners with the legendary Gordie Howe. Legends abound on the lethality of Howe’s elbows that separated opponents from their senses. Thus, the message of Carney and Myers in Team Canada jerseys quoting Mr. Hockey was as simple as it was ridiculous.

Canada was going to go into the corner to separate Donald Trump from his tariffs? How? Carney has boasted of his hockey savvy as a goalie for Harvard. Where other nations were collapsing Carney’s Canada promised to be a stout backstop. 51st State? Hah! Locking arms with Myers and Doug Ford, Carney would show the Americans what Canadians are made of. At least that’s what they said in the election campaign to restore the Liberal brand to the nation.

The hockey theme was buttressed by the emotional victory by Team Canada over Team USA in February’s Four Nations Tournament. Having been filleted in the round-robin by the Yanks, Canada won the final game, reinforcing the nation’s dominance in a sport most Americans ignore 365 days a year. To those looking for any reason to anger Trump (hello, Andrew Coyne) it seemed like destiny for the Elbows Up crew.

As an example of the Team Canada approach Carney and his paid media wind therapists savaged Alberta premier Danielle Smith for trying build bridges with the Americans. Smith had the idea there was more to be gained from energy negotiations than from sulking. Traitor! They cried when she was seen with Trump. Consorting with the Cheeto was tantamount to selling nuclear secrets.

Elbows Up Canada, like China, would inflict counter tariffs on the U.S. after a decade of Justin Trudeau frippery. It would shut down the accusations that Canada was now a benchwarmer in global affairs. It never occurred to Team Carney or the Boomer midwits who elected him that launching a trade war against a nation whose economy was ten times the size of Canada’s might be a seriously bad idea. (Like hoping to wear down the Russian military.) Anyone pointing out this small problem was immediately denounced as hating hockey, ergo hating Canada.

To further illustrate his hockey pluck Carney’s backers bragged that the former head of the Bank of Canada and Bank of England was a skilled negotiator who would wipe the floor in negotiations with the erratic Trump. Nobody gets away with publicly declaring a post-Trudeau Canada as a failed state that should ally with the U.S. The Americans will come running to Canada when they want water, oil, aluminum, steel and maple syrup.

Then a funny thing happened. While Canada stood by, Zambonis running, ready to take it to overtime, the Americans simply ignored the taunts. Trump acted as if Elbows Up was a mirage. As trade deals were announced with other nations and international meetings convened, Carney’s Canada was left outside. In spite of the tough talk on tariffs, a blasé Trump whacked Canada with 35 percent tariffs.

The meme of Carney as a potted plant at the Ukraine White House summit came to epitomize the afterthought that is post-Trudeau Canada in this climate. Inspired by their allies at CNN, MSNBC, the New York Times and the Washington Post, Canada’s purchased media fought back with all their favoured/ debunked  Russian conspiracy theories and stories of Trump’s alleged mental incapacities. To no avail.

At just the moment that embarrassment was too great for even Team Carney’s most fervent media pals, Trump last week summoned him like a call-up from the minors to be told how it was going to be. Suddenly the implacable Carney was declaring how swell it was that Canada had the best treaty in the world. Elbows Up had suddenly become Pants Down.

Of course the beaming banker acted as if it was all part of some master plan he’d worked out between periods of the game with USA. Sure, his bluster about going into the corners was all bluff, no stuff. The Master Negotiator thing was all a cover for him to reduce government spending, re-commit to the futile climate war and (don’t tell anybody) recognize Palestine as a state in the near future.

Sure. Go with that. Anyone wanting an apology from the Potted Plant will wait a long time for satisfaction. For while Liberals talk a tough game they don’t talk at all when they’re been exposed. Even more sepulchral are the media that so readily grabbed the Elbows Up hustle to defeat Pierre Poilievre. Remember the Little Trump jibes? The Sloganeer slurs? The riding defeat?

Now that Trump had blocked their righteous elbow with a right cross they’re acting as if nothing is wrong. They’re off chasing stories about Poilievre being parachuted into an Alberta riding or Trump with Jeffrey Epstein. They’re reviving the murdered Rez babies hoax. And they’re ignoring international concerns about money laundering and drug trafficking.

Anything but the utter futility of Elbows Up and the next four years of watching the decline of Canada’s formerly respected position in the world. In heaven Gordie Howe is just shaking his head.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, his new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.

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Carney’s housing plan will likely spend a lot for very little

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From the Fraser Institute

By Jake Fuss and Austin Thompson

The Carney government recently released its plan for a new federal housing “entity” called Build Canada Homes (BCH). Unfortunately, the plan is rife with conflicting priorities and major risks. Without course correction, Canadians could end up spending more while seeing no real progress on the housing crisis.

BCH’s core mandate is to cut the cost of homebuilding. Yet the plan would require BCH to favour Canadian-made and “net-zero” or environmentally conscious products. These goals are at odds. If a product needs a government preference to be used, it’s not the most cost-effective option. BCH won’t deliver affordable housing if it’s shackled by competing mandates. Simply put, chasing unrealistic “net-zero” targets and propping up domestic industries will drive up building costs.

To boost construction, BCH plans to use taxpayer dollars to reduce the financial risks to housing developers by providing loans, loan guarantees and equity investments for homebuilding. But slow and costly municipal approval processes remain one of the biggest sources of investment risk for housing developers. For example, developers face a 25-month wait, on average, for municipal planning approval in Toronto (compared to just 3.4 months in Edmonton). Federal spending won’t solve this problem—it will simply paper over the problem with expensive subsidies. In other words, to reduce financial risk for housing developers, the Carney government plans to stick Canadian taxpayers with the risks and costs of BCH loans and investments that may fail or underperform.

With BCH, the Carney government is also betting big on modular housing, based on the untested assumption that if Ottawa “drives demand” costs will plummet. Skepticism is warranted. If modular housing truly delivered on its promises of being cheaper, why haven’t private housing developers leapt at the opportunity? A study by Canada’s federal housing regulator found that modular housing is “no silver bullet,” noting that cost savings were uncertain and modular construction faces unique challenges related to transporting large prefabricated sections and protecting materials from weather damage.

At its core, the BCH approach rests upon a flawed assumption that the private sector cannot provide enough affordable housing. But that’s ahistorical—Canada had broadly affordable housing in decades past, provided almost entirely by the private sector. In reality, more private housing would be built today if all levels of government simply got out of the way and reduced taxes on housing development, relaxed rules on what can be built and where, and provided shorter and more certain approval processes.

Instead, through BCH, the Carney government plans to pump federal dollars into a broken housing system. Due to the shortage of construction labour, BCH projects may compete with private development rather than add greatly to the overall stock of houses—all at considerable cost to taxpayers.

Canada’s housing crisis won’t be solved by new agencies or lofty promises. On the contrary—governments should step back and let the private sector build. Build Canada Homes is yet another misguided Ottawa experiment: expensive, overreaching and ineffective.

Jake Fuss

Director, Fiscal Studies, Fraser Institute
Austin Thompson

Austin Thompson

Senior Policy Analyst, Fraser Institute
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