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Washington Got the Better of Elon Musk

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The tech tycoon’s Department of Government Efficiency was prevented from achieving its full reform agenda.

It seems that the postmodern world is a conspiracy against great men. Bureaucracy now favors the firm over the founder, and the culture views those who accumulate too much power with suspicion. The twentieth century taught us to fear such men rather than admire them.

Elon Musk—who has revolutionized payments, automobiles, robotics, rockets, communications, and artificial intelligence—may be the closest thing we have to a “great man” today. He is the nearest analogue to the robber barons of the last century or the space barons of science fiction. Yet even our most accomplished entrepreneur appears no match for the managerial bureaucracy of the American state.

Musk will step down from his position leading the Department of Government Efficiency at the end of May. At the outset, the tech tycoon was ebullient, promising that DOGE would reduce the budget deficit by $2 trillion, modernize Washington, and curb waste, fraud, and abuse. His marketing plan consisted of memes and social media posts. Indeed, the DOGE brand itself was an ironic blend of memes, Bitcoin, and Internet humor.

Three months later, however, Musk is chastened. Though DOGE succeeded in dismantling USAID, modernizing the federal retirement system, and improving the Treasury Department’s payment security, the initiative as a whole has fallen short. Savings, even by DOGE’s fallible math, will be closer to $100 billion than $2 trillion. Washington is marginally more efficient today than it was before DOGE began, but the department failed to overcome the general tendency of governmental inertia.

Musk’s marketing strategy ran into difficulties, too. His Internet-inflected language was too strange for the average citizen. And the Left, as it always does, countered proposed cuts with sob stories and personal narratives, paired with a coordinated character-assassination attempt portraying Musk as a greedy billionaire eager to eliminate essential services and children’s cancer research.

However meretricious these attacks were, they worked. Musk’s popularity has declined rapidly, and the terror campaign against Tesla drew blood: the company’s stock has slumped in 2025—down around 20 percent—and the board has demanded that Musk return to the helm.

But the deeper problem is that DOGE has always been a confused effort. It promised to cut the federal budget by roughly a third; deliver technocratic improvements to make government efficient; and eliminate waste, fraud, and abuse. As I warned last year, no viable path existed for DOGE to implement these reforms. Further, these promises distracted from what should have been the department’s primary purpose: an ideological purge.

Ironically, this was the one area where DOGE made major progress. In just a few months, the department managed to dismantle one of the most progressive federal agencies, USAID; defund left-wing NGOs, including cutting over $1 billion in grants from the Department of Education; and advance a theory of executive power that enabled the president to slash Washington’s DEI bureaucracy.

Musk also correctly identified the two keys to the kingdom: human resources and payments. DOGE terminated the employment of President Trump’s ideological opponents within the federal workforce and halted payments to the most corrupted institutions, setting the precedent for Trump to withhold funds from the Ivy League universities. At its best, DOGE functioned as a method of targeted de-wokification that forced some activist elements of the Left into recession—a much-needed program, though not exactly what was originally promised.

Ultimately, DOGE succeeded where it could and failed where it could not. Musk’s project expanded presidential power but did not fundamentally change the budget, which still requires congressional approval. Washington’s fiscal crisis is not, at its core, an efficiency problem; it’s a political one. When DOGE was first announced, many Republican congressmen cheered Musk on, declaring, “It’s time for DOGE!” But this was little more than an abdication of responsibility, shifting the burden—and ultimately the blame—onto Musk for Congress’s ongoing failure to take on the politically unpopular task of controlling spending.

With Musk heading back to his companies, it remains to be seen who, if anyone, will take up the mantle of budget reform in Congress. Unfortunately, the most likely outcome is that Republicans will revert to old habits: promising to balance the budget during campaign season and blowing it up as soon as the legislature convenes.

The end of Musk’s tenure at DOGE reminds us that Washington can get the best even of great men. The fight for fiscal restraint is not over, but the illusion that it can be won through efficiency and memes has been dispelled. Our fate lies in the hands of Congress—and that should make Americans pessimistic.

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Massive government child-care plan wreaking havoc across Ontario

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From the Fraser Institute

By Matthew Lau

It’s now more than four years since the federal Liberal government pledged $30 billion in spending over five years for $10-per-day national child care, and more than three years since Ontario’s Progressive Conservative government signed a $13.2 billion deal with the federal government to deliver this child-care plan.

Not surprisingly, with massive government funding came massive government control. While demand for child care has increased due to the government subsidies and lower out-of-pocket costs for parents, the plan significantly restricts how child-care centres operate (including what items participating centres may purchase), and crucially, caps the proportion of government funds available to private for-profit providers.

What have families and taxpayers got for this enormous government effort? Widespread child-care shortages across Ontario.

For example, according to the City of Ottawa, the number of children (aged 0 to 5 years) on child-care waitlists has ballooned by more than 300 per cent since 2019, there are significant disparities in affordable child-care access “with nearly half of neighbourhoods underserved, and limited access in suburban and rural areas,” and families face “significantly higher” costs for before-and-after-school care for school-age children.

In addition, Ottawa families find the system “complex and difficult to navigate” and “fewer child care options exist for children with special needs.” And while 42 per cent of surveyed parents need flexible child care (weekends, evenings, part-time care), only one per cent of child-care centres offer these flexible options. These are clearly not encouraging statistics, and show that a government-knows-best approach does not properly anticipate the diverse needs of diverse families.

Moreover, according to the Peel Region’s 2025 pre-budget submission to the federal government (essentially, a list of asks and recommendations), it “has maximized its for-profit allocation, leaving 1,460 for-profit spaces on a waitlist.” In other words, families can’t access $10-per-day child care—the central promise of the plan—because the government has capped the number of for-profit centres.

Similarly, according to Halton Region’s pre-budget submission to the provincial government, “no additional families can be supported with affordable child care” because, under current provincial rules, government funding can only be used to reduce child-care fees for families already in the program.

And according to a March 2025 Oxford County report, the municipality is experiencing a shortage of child-care staff and access challenges for low-income families and children with special needs. The report includes a grim bureaucratic predication that “provincial expansion targets do not reflect anticipated child care demand.”

Child-care access is also a problem provincewide. In Stratford, which has a population of roughly 33,000, the municipal government reports that more than 1,000 children are on a child-care waitlist. Similarly in Port Colborne (population 20,000), the city’s chief administrative officer told city council in April 2025 there were almost 500 children on daycare waitlists at the beginning of the school term. As of the end of last year, Guelph and Wellington County reportedly had a total of 2,569 full-day child-care spaces for children up to age four, versus a waitlist of 4,559 children—in other words, nearly two times as many children on a waitlist compared to the number of child-care spaces.

More examples. In Prince Edward County, population around 26,000, there are more than 400 children waitlisted for licensed daycare. In Kawartha Lakes and Haliburton County, the child-care waitlist is about 1,500 children long and the average wait time is four years. And in St. Mary’s, there are more than 600 children waitlisted for child care, but in recent years town staff have only been able to move 25 to 30 children off the wait list annually.

The numbers speak for themselves. Massive government spending and control over child care has created havoc for Ontario families and made child-care access worse. This cannot be a surprise. Quebec’s child-care system has been largely government controlled for decades, with poor results. Why would Ontario be any different? And how long will Premier Ford allow this debacle to continue before he asks the new prime minister to rethink the child-care policy of his predecessor?

Matthew Lau

Adjunct Scholar, Fraser Institute
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Canada Caves: Carney ditches digital services tax after criticism from Trump

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From The Center Square

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Canada caved to President Donald Trump demands by pulling its digital services tax hours before it was to go into effect on Monday.

Trump said Friday that he was ending all trade talks with Canada over the digital services tax, which he called a direct attack on the U.S. and American tech firms. The DST required foreign and domestic businesses to pay taxes on some revenue earned from engaging with online users in Canada.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” the president said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

By Sunday, Canada relented in an effort to resume trade talks with the U.S., it’s largest trading partner.

“To support those negotiations, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States,” according to a statement from Canada’s Department of Finance.

Canada’s Department of Finance said that Prime Minister Mark Carney and Trump agreed to resume negotiations, aiming to reach a deal by July 21.

U.S. Commerce Secretary Howard Lutnick said Monday that the digital services tax would hurt the U.S.

“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” he wrote on X.

Earlier this month, the two nations seemed close to striking a deal.

Trump said he and Carney had different concepts for trade between the two neighboring countries during a meeting at the G7 Summit in Kananaskis, in the Canadian Rockies.

Asked what was holding up a trade deal between the two nations at that time, Trump said they had different concepts for what that would look like.

“It’s not so much holding up, I think we have different concepts, I have a tariff concept, Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”

Shortly after taking office in January, Trump hit Canada and Mexico with 25% tariffs for allowing fentanyl and migrants to cross their borders into the U.S. Trump later applied those 25% tariffs only to goods that fall outside the free-trade agreement between the three nations, called the United States-Mexico-Canada Agreement.

Trump put a 10% tariff on non-USMCA compliant potash and energy products. A 50% tariff on aluminum and steel imports from all countries into the U.S. has been in effect since June 4. Trump also put a 25% tariff on all cars and trucks not built in the U.S.

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods paid by the person or company that imports them. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.

Trump’s tariffs give U.S.-produced goods a price advantage over imported goods, generating revenue for the federal government.

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