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Federal mismanagement to blame for Canada’s immigration backlash

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15 minute read

From the Macdonald Laurier Institute

By Sonia Orlu for Inside Policy

Canada’s welcoming attitude towards newcomers makes it one of the most sought-after places to live in the world. However, this image is being tested by a growing backlash against immigration. Immigrants make up 23 per cent of the population, yet economic, social, and cultural anxieties are increasingly challenging the country’s commitment to diversity. More than four-in-ten Canadians now agree – either strongly (23 per cent) or somewhat (21 per cent) – with the statement, “There is too much immigration to Canada.” It is crucial to understand that this backlash is not rooted in opposition to immigration or immigrants themselves, but rather in frustration over mismanagement and inadequate planning by the federal government. It reflects a growing unease about the country’s economic outlook, raising urgent questions about how Canada can uphold its values while addressing legitimate and pressing concerns.

Public reactions and political responses

Canadian political leaders have generally maintained a measured tone on immigration, focusing on economic pressures and service delivery rather than hostility toward immigrants. However, tensions are rising, and a thoughtful debate is increasingly needed.

Prime Minister Justin Trudeau has accused the Conservative Party of spreading misinformation to stoke fears about immigration. Such remarks risk alienating those with legitimate critiques of his administration’s policies and practices. Conservative Leader Pierre Poilievre has linked immigration to housing shortages, criticizing Trudeau’s policies as disconnected from infrastructure needs. This aligns with public frustrations over housing availability and the need for better coordination between immigration levels and capacity. Quebec Premier François Legault echoed similar sentiments, raising issues of resource management and culture. His critics accuse him of xenophobia, but dismissive responses like Immigration Minister Marc Miller’s remark that people are “always blaming immigrants” overlook genuine challenges and deepen frustration.

These exchanges illustrate the delicate balance required in navigating immigration policy and public sentiment. Canadians’ attitudes toward immigration are more nuanced than a simple pro- or anti-immigration divide. Most Canadians aren’t driven by fear or racism; rather, they are focused on how immigration impacts housing affordability, strains public finances, and increases job competition. While apprehension about immigration levels is growing, attitudes toward immigrants themselves remain largely positive. In fact, more than four-in-ten Canadians (42 per cent) say that immigrants make their community a better place, with fewer than one-in-ten (9 per cent) feeling that they make it worse. Still, public concerns must be addressed to prevent further polarization.

The housing crisis: a catalyst for frustration

A significant driver of the immigration backlash is the housing crisis. The Canada Mortgage and Housing Corporation (CMHC) reported in 2024 that Canada needs an additional 3.5 million housing units by 2030 to restore affordability. Cities like Toronto and Vancouver have seen housing prices soar, partly due to increased demand from population growth.

The “housing theory of everything” highlights how housing affects multiple societal issues – such as economic inequality, social mobility, and political polarization. Immigration is no exception. Housing shortages drive up costs, deepen inequality, and create competition between immigrants and long-term residents, eroding social trust and cohesion.

The rise in temporary residents, including international students and temporary foreign workers, compounds these issues. Immigration, Refugees and Citizenship Canada (IRCC) reports that the number of temporary residents increased by over 50 per cent from 2017 to 2022 and continued to rise sharply  into 2024. This influx contributes to increased demand in the rental housing market, particularly in urban centres with large universities, driving up prices and reducing availability.

The Trudeau government’s ambitious plan to admit nearly 500,000 new permanent residents annually by 2026 marks one of the highest per-capita immigration rates globally. By comparison, Canada admitted around 200,000 landed immigrants per year in the 1990s and 250,000 per year in the early 2010s. Without matching investments in infrastructure and housing, these elevated immigration levels – often referred to as “mass immigration” – could exacerbate housing shortages, strain public services, and heighten public frustration. Internal documents from Immigration, Refugees, and Citizenship Canada revealed that as early as 2022, officials warned that large increases in immigration could worsen housing affordability and strain public services. Yet, no substantive steps were taken by the government to revise its targets.

Given the realistic timelines for development, it is improbable that infrastructure can keep pace with rapid population growth. The construction industry faces labour shortages, regulatory hurdles, and lengthy timelines for project completion – often several years. The CMHC maintains that due to these complexities, expecting cities to rapidly scale up infrastructure to meet immediate demands is unrealistic.

If these housing issues are not resolved, public frustration could escalate, potentially shifting from concerns about immigration policy to resentment toward immigrants themselves.

Cultural integration: balancing diversity and cohesion

Economic challenges, such as housing affordability, often intersect with social and cultural anxieties. As communities experience rapid change and strained resources, questions arise about society’s ability to integrate newcomers without compromising its social fabric. While only about 4 per cent of Canadians express fears that immigration weakens local culture and identity, concerns about the effectiveness of integration are more widespread. In fact, approximately half of Canadians are concerned that some immigrants may not be adopting Canadian values or fully participating in the broader community. When asked which values immigrants should adopt, Canadians often prioritize language proficiency and respect for the country’s history and culture, highlighting the importance placed on cultural integration. Interestingly, both native-born and foreign-born Canadians largely agree on the values newcomers should embrace, indicating a shared vision for integration.

Canada’s sense of nationhood is deeply tied to its history of migration and its commitment to cultural and ethnic diversity. However, diversity is not inherently beneficial in all forms; its value depends on whether it leads to greater tolerance, creativity, or economic growth. When cultural and ethnic diversity is celebrated without deliberate efforts to foster interaction and promote unity, it risks becoming fragile. Poorly managed diversity can lead to social fragmentation, lower trust, and weakened civic engagement.

The challenges of integration are well-documented. Language barriers, different social norms, and unfamiliarity with Canadian institutions can make it difficult for immigrants to fully integrate. This can sometimes lead to the formation of cultural enclaves, where newcomers find comfort in communities with shared backgrounds but have limited interaction with the broader society. While these enclaves provide crucial support, they can inadvertently hinder full participation in Canadian life. Sociologist Robert Putnam found that, in the short term, diversity can reduce social capital and lower community engagement, particularly when institutions fail to promote integration – a concept he refers to as “hunkering down.” In such cases, both newcomers and long-term residents may feel isolated.

Despite these challenges, diversity, when managed effectively, can yield benefits. Exposure to different cultures fosters creativity, innovation, and economic growth, even though research suggests that immigration itself is neither inherently good nor bad for the economy. Cities like Toronto and Vancouver have thrived in part due to their multicultural populations, which have helped them become global hubs for technology and the arts. Additionally, evidence shows that successful integration is common in Canada. Many immigrants actively embrace Canadian valuescontribute to the economy, and participate in civic life. The majority of eligible immigrants become Canadian citizens, demonstrating a strong commitment to their new country. Many immigrants choose Canada precisely because they align with its principles of democracy, equality, and respect for human rights. Cultural integration, in the end, is a dynamic process – one that, when approached thoughtfully, strengthens rather than weakens the social fabric.

Bridging policy failures with sustainable solutions

Addressing public frustrations with immigration requires a serious reassessment of the policies that have exacerbated these concerns.

First and foremost, tackling the housing crisis through integrated planning is essential. Governments should incentivize affordable housing development and reform zoning laws to allow for higher-density projects. Recognizing the realistic timelines for construction and development, planning must begin immediately and be synchronized with immigration targets. Public sentiment strongly supports this approach. A recent Nanos Research survey found that 72 per cent of Canadians want to reduce immigration levels until housing becomes affordable.

Aligning immigration levels with the country’s capacity is crucial. Dynamic targets based on real-time economic data and infrastructure development would ensure that immigration aligns with Canada’s ability to provide services and opportunities. Returning to historical admission levels of 200,000 to 250,000 immigrants per year could help ease pressure on housing and public services. Adjusting the composition of immigration streams is equally important.

Temporary measures – such as pausing or reducing programs for international students and temporary foreign workers – could relieve immediate pressures while infrastructure catches up. For instance, although international students contributed over $30 billion to the economy in 2022, lowering their numbers could help reduce housing demand in university towns. Likewise, managing temporary foreign worker intake would address labour shortages without overwhelming resources.

Effective integration and support services must also be given priority. This should begin with implementing consistent selective immigration measures that evaluate an applicant’s potential to integrate both economically and culturally into Canadian society. Such measures would reduce reliance on extensive post-arrival support and help ease cultural tensions. According to a 2018 Angus Reid survey, two-in-three Canadians believe that greater emphasis should be placed on screening for alignment with Canadian values. However, it’s important to note that defining “Canadian values” can be subjective and risks being perceived as discriminatory.

Improvements to post-arrival services like community centres offering language classes, job search support, and cultural orientation programs are necessary to significantly ease the transition for newcomers. Research shows that when immigrants are effectively integrated, they are more likely to find employment, increasing tax contributions and reducing their reliance on social services. Additionally, well-integrated immigrants are more likely to engage in civic life, fostering social cohesion and strengthening community resilience.

Cultural diversity, while valuable, cannot be assumed to sustain itself without active support. Integration is not just about where people live or demographic representation; it also involves cultivating a shared sense of purpose and belonging. Successful integration depends on a reciprocal relationship: immigrants need the resources and opportunities to succeed, and in turn, they must engage with and contribute to the broader societal and cultural framework. Without deliberate policies that encourage community engagement, cross-cultural dialogue, and mutual respect, there is a risk that cultural diversity will falter.

Finally, responsible political discourse is crucial. Leaders must choose their words carefully, as rhetoric shapes public perceptions. By fostering nuanced and empathetic dialogue, they can bridge the gap between public concerns and policy realities, preserving national unity.

Canada stands at a crossroads. While immigration has long been one of our greatest assets, the current backlash highlights cracks in its management. This is not a rejection of immigrants – it’s a call for better policies and improved management. High immigration levels without careful planning will continue to harm our society. Our leaders now face a choice: fan the flames of division or unite the country around meaningful, evidence-based solutions.


Sonia Orlu is a Ph.D. student in Political Science at Simon Fraser University and a commentator on politics and culture. She is a contributing writer to the Macdonald-Laurier Institute.

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Carney’s ‘major projects’ list no cause for celebration

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From the Fraser Institute

By Alex Whalen

Early in his term, Prime Minister Mark Carney placed great emphasis on the need to think big and move quickly, to make Canada the “world’s leading energy superpower.” Recently, the government announced the first group of projects to be championed by its new Major Projects Office (MPO), which was also recently created to circumvent existing rules and regulations to speed up approvals. Unfortunately, the list of projects is decidedly underwhelming, which highlights the need for a true course correction when it comes to fixing Canada’s investment crisis.

According to the government, the purpose of the Major Projects Office is to fast-track “nation building” projects, with a focus on regulatory approvals and financing. Yet, of the first five projects referred to the MPO, regulatory approvals have largely already been secured and the projects were likely to proceed without any intervention or assistance from Ottawa.

For example, many of the regulatory approvals required for the Darlington Small Nuclear Reactor are already in place, and construction has already begun. The McIlvenna Bay copper mine in Saskatchewan is already half-built.

Other projects, such as LNG Phase 2 and the Red Chris Copper Mine, both in British Columbia, are expansions of existing facilities and are backed by industry-leading firms such as Shell and Rio Tinto, respectively. In general, these projects do not need government assistance or financing since they’re already largely approved.

A further six projects being referred to the MPO are at an earlier stage of development, and for the most part do not yet require regulatory approvals. Carney has referred this list—which includes projects ranging from carbon capture to high speed rail to offshore wind—to the MPO to be matched with government “business development teams” to “advance these concepts.”

These initiatives parallel the approach by the Trudeau government to rely on government-directed projects to foster economic growth, which failed miserably. The Trudeau government’s economic policies featured a much larger role for government in the economy, including a general increase in the size and scope of the federal government, as measured by increased spending and regulation. The result? Under Trudeau, annual growth of per-person GDP (an indicator of living standards) was just 0.3 per cent, the worst track record of any recent prime minister. Net business investment (foreign direct investment in Canada minus Canadian direct investment abroad) declined by $388 billion between 2015 and 2023 (the latest year of available data).

To set Canada on a course to reverse the investment crisis, Carney must abandon the notion of government-directed economic growth. Approving projects already largely approved, while sending other less-certain projects to government business development bureaucrats, will not fix Canada’s problem. Simply put, the government should craft policy to create the right conditions for investment and entrepreneurship for all firms in all sectors of the economy, not simply its chosen winners.

To attract the kinds of major projects that will meaningfully improve Canada’s investment crisis, the Carney government should eliminate a host of regulations and reform those that survive. As other analysts have noted, the list of regulatory hurdles in Canada is long. Canada’s total regulatory load has increased substantially over time and across a wide range of industries including energy, autos, child care, supermarkets and more.

Nowhere is this more evident than the energy industry, which is one of the largest drivers of investment in Canada. Federal Bills C-69 and C-48 (which govern the project approval process and ban oil tankers on the west cost, respectively), alongside the federal greenhouse gas emissions cap, net-zero policies, and a host of other regulation such as new fuel standard have significantly constrained this industry, which is vital to Canada’s economic success.

Canada’s regulatory explosion has effectively decimated the country’s investment climate. While Bill C-5 allows cabinet to circumvent these regulations, it places the cabinet, and more specifically the prime minister, in the position of picking winners and losers. Broad-based tax and regulatory reduction and reform would be a much more effective approach.

Canada continues to struggle amid an investment crisis that’s holding back economic growth and living standards. Our country needs bold changes to the policy environment conducive to attracting more investment. The government’s response to date, through Bill C-5 and the MPO, involves making the government more, not less, involved in the economy. The government should reverse course.

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Global elites insisting on digital currency to phase out cash

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From LifeSiteNews

By David James

The aim is to have the digital euro fully in place by 2030 in order to move Europe fully into the United Nations’ post-capitalist system described in Agenda 2030.

It always pays to scrutinize closely the comments of financial elites because they are rarely honest about their intentions. An instance is the comments of Christine Lagarde, president of the European Central Bank (ECB) who said there will be a vote next month in the European Union parliament on the next step toward creating a digital euro, which would be a central bank digital currency (CBDC).

A central bank digital currency is money issued by the central bank in digital form as opposed to digital credit issued by banks, which is the dominant form of money in Western societies. She claims that it will mean more freedom for Europeans and that there is nothing to fear.

Lagarde anticipates launching the digital euro in about 18 months. The aim is to have it fully in place by 2030 in order to move Europe fully into the United Nations’ post-capitalist system that is described in Agenda 2030.

Lagarde’s blandishments about what the digital euro represents do not survive close examination. She acknowledged that the main concern of the population is the privacy implications, claiming the ECB is looking at a technology that will offer protections. The private banks, she said, will apply the “rules of scrutiny” that already have access to the transactions. “We are not interested in the data. The private banks are interested in the data.”

Lagarde also said that the “people have dictated” the transition to a digital euro. This looks dubious. Neither the EU Commission nor the ECB is democratically elected. And if the main concern people have with a CBDC is privacy, then why would people prefer it over cash, which is immune to scrutiny? It is not as if a digital euro would satisfy an unmet need. Digital money – credit and online transactions – is already freely available in the banking system.

The ECB is also speaking out of both sides of its mouth, saying on one hand that the digital euro will only complement cash and on the other that cash will be eliminated.

Lagarde made it clear that the aim is to phase out cash completely. Agenda 2030, she claims, “can only be enforced in a cashless economy.” Why? What is it about cash that makes environmental policies impossible to implement? The answer is surely that a digital euro is needed to control people’s behavior, forcing them to comply with environmental rules.

Previous comments by central bankers suggest there is good reason for Europeans to be extremely suspicious. In 2021, the general manager of the Bank for International Settlements, Agustín Carstens, said: “We don’t know who’s using a $100 bill today and we don’t know who’s using a 1,000-peso bill today. The key difference with the CBDC is the central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability, and also we will have the technology to enforce that.”

The pretext for the financial power play is climate change and the push toward net zero. A European CBDC is not, as implied by Lagarde, the creation of a new digital monetary mechanism. As economist Richard Werner points out, that already exists – credit and debit cards, for example. The significance of a digital euro is that it threatens the banking system.

That problem does not seem to concern the ECB, however. Indeed, fundamentally altering the banking system may be what they are aiming for. Lagarde said “climate compliance” will become a core element of bank supervision, not a separate initiative, “because climate change presents significant, material financial risks to banks and the entire financial system.”

The ECB’s supervision will mandate that banks integrate the management of climate-related and environmental risks into their existing risk management processes, particularly through new prudential transition planning requirements under what is called CRD VI. European banking, it seems, will no longer be defined by profitability and fiscal soundness but also by the politics of climate change.

The slipperiness of the ECB‘s arguments point to a much darker ambition. Werner says when CBDCs are connected to digital IDs “we are talking about the most totalitarian control system in human history … it gives you as a controller complete visibility on what everyone is doing, every transaction.

“The monitoring is only one aspect. These CBDCs are programmable and you can use big data algorithms, which they sell to us as artificial intelligence, in order to have rules about who can buy what and for what purpose, at what time and at what place – and therefore control all your movement. In the history of dictatorships, there never has been such a powerful control tool.”

There is a flaw, though, in the ECB’s push to change Europe’s financial architecture that may prove fatal to its ambitions. The EU and ECB do not have genuine central control. When the euro was established in 1998, the only way Germany was able to join was on the condition there was no consolidation of the government debt. So, although the ECB notionally sets interest rates for the zone, government debt is held at the national level and each country’s interest rate differs.

The ECB is thus a central bank in name only, unlike the U.S. Federal Reserve, or for that matter most country’s central banks, that oversee their national government debt. A European nation can choose to exit the EU, and each has to have its own monetary policy in spite of the ECB setting a uniform rate.

The push to create a digital euro is most likely an attempt to deal with these contradictions, but at best it will be a makeshift solution and it will take very little for it to fall apart. Disintegration of the European Union, and the common currency, is not out of the question.

Meanwhile, the U.S. is going in the opposite direction. In July, the U.S. House of Representatives passed the Anti-CBDC Surveillance State Act, which prevents the Federal Reserve from issuing a retail CBDC directly to individuals.

European debt is becoming increasingly parlous, especially in France where there have even been suggestions that there might need to be assistance from the International Monetary Fund. Italy’s debt, which is 138 percent of GDP, is also problematic. Lagarde is hoping for a rollout of the digital euro in 2027 and completion in 2030. But the Euro zone, and the ECB that oversees it, may not last that long.

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