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Opinion

Trudeau’s Winnipeg Whitewash – A Masterclass in Diversion and Disconnection

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12 minute read

From The Opposition with Dan Knight

As Canada grapples with soaring housing costs and a quality of life crisis, the Prime Minister’s narrative on immigration & multicultural success stories clashes with the lived realities of Canadians

As some of you enjoyed the comfort of Family Day, perhaps some of you noticed Justin Trudeau making the rounds in Winnipeg – (Justin Trudeau Fireside Chat at Winnipeg Chamber of Commerce – February 16, 2024), where he found quite the fan in Loren Remillard of the Winnipeg Chamber of Commerce. It seems Remillard was all too eager to extend a metaphorical hand, fishing for tax dollars to prop up their projects.

Oh, let’s dissect the masterful art of political deflection and diversion, shall we? Justin Trudeau, spun a narrative so disconnected from the reality Canadians live in, it’s almost an art form. He lauds Toronto and Vancouver as paragons of multicultural success, cities thriving under the weight of their diversity. But here’s the catch folks—the reality on the ground, as reported by Stats Canada, tells a story that’s anything but rosy for the residents of these supposed utopias.

When we turn our gaze to the real impact of his government’s immigration policies on the ground, the picture is starkly different. Toronto and Vancouver, the benchmarks of Trudeau’s immigration success story, are in fact cities where residents report a lower quality of life than their provincial counterparts. Why? Because amidst the fanfare of diversity and inclusion, the basic needs of the citizens—like feeling a sense of belonging, life satisfaction, and mental health—are being sidelined.

Let’s not forget the elephant in the room Trudeau casually mentioned—2 million temporary residents flooding into Canada. This isn’t just a number; it’s a tsunami of demand in addition to the Liberal 500k target per year of permanent resident hitting a housing market already gasping for air, driving rents and shelter costs to astronomical heights. And Trudeau’s response? A shrug of the shoulders and a diversion to talk about measures with Mexico or the plight of international students. While these issues merit attention, they dance around the core issue: a government more obsessed with its global image than the welfare of its citizens.

The audacity to claim that Toronto and Vancouver are thriving under his policies, while Stats Canada directly contradicts this with evidence of declining quality of life, is nothing short of political theater. It’s a sleight of hand designed to distract from the harsh reality—that his government’s approach to immigration and temporary residents is contributing to a crisis of affordability and well-being in our major cities.

But amidst the spectacle, Trudeau touched on a subject that should raise eyebrows across the nation: On how his government is using immigration as a tool to “grow the economy.” Now, let’s pause for a moment to digest that, shall we?

Diving deeper, a fascinating exchange caught my ear during a Finance Committee meeting FINA-124 -February 1, 2024, where Tiff Macklem of the Bank of Canada offered some candid insights. When prodded by Mr. Jasraj Singh Hallan, Macklem conceded that the government’s spending spree and the Bank’s efforts to stabilize our economy were essentially at loggerheads. Here we have the Trudeau administration, pushing fiscal policies that seem to sprint in the opposite direction of monetary sanity.

Macklem went on, outlining that yes, government spending is contributing to growth, but let’s be clear about the kind of growth we’re talking about here. It’s one that barely keeps pace with population increases, teetering on the edge of potential. And with government spending poised to climb even higher, we’re flirting dangerously close to exacerbating inflation, rather than reining it in.

Senior Deputy Governor Carolyn Rogers chimed in with a stark reminder of the housing market’s woes. Despite interest rate hikes, which traditionally cool down housing prices, Canada’s chronic housing shortage keeps prices stubbornly high. The result? A housing affordability crisis that’s squeezing Canadians tighter than ever, exacerbated by an immigration policy that is throwing fuel on the fire of demand without addressing the urgent need for supply.

This is the picture Trudeau’s policies paint for Canada: a nation where the cost of living climbs ever higher, where the dream of homeownership slips further away for the average citizen, and where economic growth strategies seem disconnected from the realities on the ground. It’s high time for a reality check, a moment to ask ourselves whether these policies truly serve the best interest of Canadians or merely the political agenda of those in power.

Indeed, the root of the issue is staring us right in the face—supply problems are driving costs through the roof. Yet, it seems as though there’s a conspiracy of silence in the House of Commons; no one dares to utter the truth that unchecked immigration is exacerbating these supply woes, sending shelter costs soaring. Let’s dive into the latest from Stats Canada to unravel the narrative everyone is thriving under Justin Trudeau.

First off, let’s talk about renters. According to this report, if you’re renting, your quality of life isn’t just on the lower rung; it’s plummeting. Renters are staggering under the weight of financial pressures unheard of for homeowners, feeling the pinch of record-low vacancy rates and rent hikes that would make your head spin. Over 15 percentage points more likely to struggle financially and over 11 points less likely to experience life satisfaction.

But the plot thickens when we look at the younger Canadians, those aged 15 to 54. They’re caught in a vise, with life satisfaction and mental health scores that trail behind their older counterparts. The dream of home ownership? A mirage for many, as they navigate a landscape where the very idea of paying off a mortgage seems like a relic of a bygone era. And let’s not even get started on the economic tightrope walked by residents of Toronto and Vancouver, cities where the cost of living soars as high as the skyscrapers dotting their skylines.

Now, Trudeau’s government might have you believe that policies are in place to bridge these divides, to bolster the quality of life for all Canadians. But let’s be real—the evidence suggests otherwise. With renters and younger generations buckling under financial strains and cities like Toronto and Vancouver becoming enclaves of the unaffordable, the narrative being spun by the current administration seems more fiction than fact.

Consider the financial strain laid bare by these statistics: a significant portion of Canadians are finding it increasingly difficult to meet their financial needs, with shelter costs consuming a lion’s share of their income.

In a landscape marked by disparities in quality of life we’re left with a pressing question: where does the path forward lie?

 

Let’s cut to the chase, folks. The latest 338 polling data isn’t just a blip on the political radar; it’s a resounding bell tolling for the end of the Liberals’ reign, inching closer to losing their official party status. Why, you might ask? It’s simple: Justin Trudeau’s legacy is one of profound ineptitude, a legacy that has systematically failed Canadians at every turn. When Trudeau touts his housing policies, claiming to increase rentals, remember the cold, hard facts from Stats Canada—he’s not building homes; he’s crafting a nation with a diminished quality of life. That’s the Trudeau vision for Canada.

And let’s not overlook the audacity of his actions—jetting off to Jamaica with a hefty $162,000 bill footed by you, the taxpayer. It seems Trudeau’s concern for your quality of life evaporates faster than a Liberal MP can devour lobster in Malaysia. Meanwhile, ordinary Canadians are left to scrounge at food banks. But hey, as long as the political elite get their fill, right?

SNC-Lavalin was just the beginning, the canary in the coal mine signaling the avalanche of corruption set to spill out from Trudeau’s government. WE Charity, the Trudeau Foundation, Chinese interference, ArriveScam… the list of scandals under Trudeau’s watch is as long as it is disgraceful. These aren’t mere footnotes in history; they’re the defining features of his tenure.

Remember the uproar over a $16 orange juice under Harper? That was considered the height of scandal, a benchmark of accountability. Fast forward to today, and this government can’t even spell ‘ethics,’ let alone practice it.

So, my fellow Canadians, as we look ahead to the next election, we’re presented with a golden opportunity—a chance to reset the narrative and send a clear message to the liberal elites that we’ve had enough of their disdain for the average citizen. I, for one, will be cheering on the red wedding of Canadian politics because the liberal standard is not just detrimental to your well-being; it’s an affront to all of Canada. It’s time to say enough is enough and reclaim the Canada we know and love—a Canada of integrity, accountability, and true north strong and free.

Economy

Federal government’s GHG reduction plan will impose massive costs on Canadians

Published on

From the Fraser Institute

By Ross McKitrick

Many Canadians are unhappy about the carbon tax. Proponents argue it’s the cheapest way to reduce greenhouse gas (GHG) emissions, which is true, but the problem for the government is that even as the tax hits the upper limit of what people are willing to pay, emissions haven’t fallen nearly enough to meet the federal target of at least 40 per cent below 2005 levels by 2030. Indeed, since the temporary 2020 COVID-era drop, national GHG emissions have been rising, in part due to rapid population growth.

The carbon tax, however, is only part of the federal GHG plan. In a new study published by the Fraser Institute, I present a detailed discussion of the Trudeau government’s proposed Emission Reduction Plan (ERP), including its economic impacts and the likely GHG reduction effects. The bottom line is that the package as a whole is so harmful to the economy it’s unlikely to be implemented, and it still wouldn’t reach the GHG goal even if it were.

Simply put, the government has failed to provide a detailed economic assessment of its ERP, offering instead only a superficial and flawed rationale that overstates the benefits and waives away the costs. My study presents a comprehensive analysis of the proposed policy package and uses a peer-reviewed macroeconomic model to estimate its economic and environmental effects.

The Emissions Reduction Plan can be broken down into three components: the carbon tax, the Clean Fuels Regulation (CFR) and the regulatory measures. The latter category includes a long list including the electric vehicle mandate, carbon capture system tax credits, restrictions on fertilizer use in agriculture, methane reduction targets and an overall emissions cap in the oil and gas industry, new emission limits for the electricity sector, new building and motor vehicle energy efficiency mandates and many other such instruments. The regulatory measures tend to have high upfront costs and limited short-term effects so they carry relatively high marginal costs of emission reductions.

The cheapest part of the package is the carbon tax. I estimate it will get 2030 emissions down by about 18 per cent compared to where they otherwise would be, returning them approximately to 2020 levels. The CFR brings them down a further 6 per cent relative to their base case levels and the regulatory measures bring them down another 2.5 per cent, for a cumulative reduction of 26.5 per cent below the base case 2030 level, which is just under 60 per cent of the way to the government’s target.

However, the costs of the various components are not the same.

The carbon tax reduces emissions at an initial average cost of about $290 per tonne, falling to just under $230 per tonne by 2030. This is on par with the federal government’s estimate of the social costs of GHG emissions, which rise from about $250 to $290 per tonne over the present decade. While I argue that these social cost estimates are exaggerated, even if we take them at face value, they imply that while the carbon tax policy passes a cost-benefit test the rest of the ERP does not because the per-tonne abatement costs are much higher. The CFR roughly doubles the cost per tonne of GHG reductions; adding in the regulatory measures approximately triples them.

The economic impacts are easiest to understand by translating these costs into per-worker terms. I estimate that the annual cost per worker of the carbon-pricing system net of rebates, accounting for indirect effects such as higher consumer costs and lower real wages, works out to $1,302 as of 2030. Adding in the government’s Clean Fuels Regulations more than doubles that to $3,550 and adding in the other regulatory measures increases it further to $6,700.

The policy package also reduces total employment. The carbon tax results in an estimated 57,000 fewer jobs as of 2030, the Clean Fuels Regulation increases job losses to 94,000 and the regulatory measures increases losses to 164,000 jobs. Claims by the federal government that the ERP presents new opportunities for jobs and employment in Canada are unsupported by proper analysis.

The regional impacts vary. While the energy-producing provinces (especially Alberta, Saskatchewan and New Brunswick) fare poorly, Ontario ends up bearing the largest relative costs. Ontario is a large energy user, and the CFR and other regulatory measures have strongly negative impacts on Ontario’s manufacturing base and consumer wellbeing.

Canada’s stagnant income and output levels are matters of serious policy concern. The Trudeau government has signalled it wants to fix this, but its climate plan will make the situation worse. Unfortunately, rather than seeking a proper mandate for the ERP by giving the public an honest account of the costs, the government has instead offered vague and unsupported claims that the decarbonization agenda will benefit the economy. This is untrue. And as the real costs become more and more apparent, I think it unlikely Canadians will tolerate the plan’s continued implementation.

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Alberta

Alberta awash in corporate welfare

Published on

From the Fraser Institute

By Matthew Lau

To understand Ottawa’s negative impact on Alberta’s economy and living standards, juxtapose two recent pieces of data.

First, in July the Trudeau government made three separate “economic development” spending announcements in  Alberta, totalling more than $80 million and affecting 37 different projects related to the “green economy,” clean technology and agriculture. And second, as noted in a new essay by Fraser Institute senior fellow Kenneth Green, inflation-adjusted business investment (excluding residential structures) in Canada’s extraction sector (mining, quarrying, oil and gas) fell 51.2 per cent from 2014 to 2022.

The productivity gains that raise living standards and improve economic conditions rely on business investment. But business investment in Canada has declined over the past decade and total economic growth per person (inflation-adjusted) from Q3-2015 through to Q1-2024 has been less than 1 per cent versus robust growth of nearly 16 per cent in the United States over the same period.

For Canada’s extraction sector, as Green documents, federal policies—new fuel regulations, extended review processes on major infrastructure projects, an effective ban on oil shipments on British Columbia’s northern coast, a hard greenhouse gas emissions cap targeting oil and gas, and other regulatory initiatives—are largely to blame for the massive decline in investment.

Meanwhile, as Ottawa impedes private investment, its latest bundle of economic development announcements underscores its strategy to have government take the lead in allocating economic resources, whether for infrastructure and public institutions or for corporate welfare to private companies.

Consider these federally-subsidized projects.

A gas cloud imaging company received $4.1 million from taxpayers to expand marketing, operations and product development. The Battery Metals Association of Canada received $850,000 to “support growth of the battery metals sector in Western Canada by enhancing collaboration and education stakeholders.” A food manufacturer in Lethbridge received $5.2 million to increase production of plant-based protein products. Ermineskin Cree Nation received nearly $400,000 for a feasibility study for a new solar farm. The Town of Coronation received almost $900,000 to renovate and retrofit two buildings into a business incubator. The Petroleum Technology Alliance Canada received $400,000 for marketing and other support to help boost clean technology product exports. And so on.

When the Trudeau government announced all this corporate welfare and spending, it naturally claimed it create economic growth and good jobs. But corporate welfare doesn’t create growth and good jobs, it only directs resources (including labour) to subsidized sectors and businesses and away from sectors and businesses that must be more heavily taxed to support the subsidies. The effect of government initiatives that reduce private investment and replace it with government spending is a net economic loss.

As 20th-century business and economics journalist Henry Hazlitt put it, the case for government directing investment (instead of the private sector) relies on politicians and bureaucrats—who did not earn the money and to whom the money does not belong—investing that money wisely and with almost perfect foresight. Of course, that’s preposterous.

Alas, this replacement of private-sector investment with public spending is happening not only in Alberta but across Canada today due to the Trudeau government’s fiscal policies. Lower productivity and lower living standards, the data show, are the unhappy results.

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