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Historic decline in Canadian living standards continues into 2024

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From the Fraser Institute

By Grady Munro and Jake Fuss

Statistics Canada on Friday released its estimate of gross domestic product (GDP) for the first quarter of 2024, and once again while the Canadian economy is technically growing, the living standards of Canadians themselves are continuing to fall.

The new numbers reveal that inflation-adjusted GDP—the final value of all goods and services produced in the economy and the most widely used measure of overall economic activity—grew by 0.4 per cent in the first quarter of 2024. But at the same time, inflation-adjusted GDP per person—a broad measure of individual living standards—actually fell 0.2 per cent during the first quarter of 2024, down to $58,028.

This apparent disconnect between overall economic growth and individual living standards is the result of Canada’s changing population. The reason the economy is growing while living standards are falling is because the rate of economic growth is not fast enough to account for all the new people in Canada (whether through birth or immigration). During the first three months of 2024, the economy grew by 0.4 per cent while the population grew by 0.6 per cent.

A single quarter of declining per-person GDP is not particularly concerning in and of itself, but unfortunately for Canadians, these new data are simply the latest evidence of a prolonged decline in individual living standards.

A recent study measured inflation-adjusted per-person GDP over the last 40 years (1985 to 2023) and found that from the middle of 2019 (well before COVID) to the end of 2023, per-person GDP fell from $59,905 to $58,134. This 3.0 per cent drop over four and a half years was the second-longest and third-deepest decline in living standards over the entire period—only exceeded in both length and depth by the more than five-year decline that began mid-1989 and lasted until living standards recovered in the third quarter of 1994, and which saw inflation-adjusted GDP per person fall by 5.3 per cent.

If we factor in the new data for the beginning of 2024, we see that the current ongoing decline is worsening. Inflation-adjusted per-person GDP now sits 3.1 per cent below the level it was in mid-2019, and the decline is approaching five-years in length. In other words, Canada is approaching the milestone of experiencing the longest decline in individual living standards of the last 40 years.

Weak economic growth combined with a fast-growing population over the last several years have resulted in Canadians experiencing a marked and prolonged decrease in living standards. With new data showing no sign of improvement, Canadians and governments across the country should realize that the status quo cannot continue.

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Alberta

As President Trump creates new economy, Trudeau government ‘pandering’ to globalists

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Jordan Peterson in a February 5, 2025 video titled ‘Canada Must Offer Alberta More Than Trump Could’

From LifeSiteNews

By Anthony Murdoch

“Enough idiot green moralizing, enough carbon tax. Enough bloody net-zero,” he said, adding, “how about this: enough multiculturalism and destruction of the Canadian identity.” 

Well-known Canadian psychologist Dr. Jordan Peterson had choice words for Canadian politicians last week, accusing them of “pandering” to elites and ruining the nation.

In the February 5 video entirely dedicated to the topic of Canadian politics, Peterson said that he is sick of “pathetic celebrity wannabe” politicians, a category in which he includes Prime Minister Justin Trudeau, who are “pandering” to the global elites at the expense of ordinary citizens.

Peterson, who is from Alberta, in particular defended his province from a continued push by the Liberal government to undermine its oil and gas industry, amidst a trade tariff dispute with the United States. 

“Enough overt and covert attempts to destroy the basis of the economy of my fair and hard-working province,” said Peterson. 

“Enough delaying critical infrastructure development and rejection of international trade offers for natural gas, oil, and coal. Enough treatment of the resource economy upon which Quebec in particular, so unacceptably depends as a moral pariah.” 

Peterson also took issue with Trudeau’s unpopular carbon tax and the Liberal government’s ongoing promotion of DEI (diversity, equity, inclusion) ideology. 

“Enough idiot green moralizing, enough carbon tax. Enough bloody net-zero,” he said, adding, “how about this: enough multiculturalism and destruction of the Canadian identity.” 

In recent weeks, the Trudeau government has been embroiled in a trade dispute with U.S. President Donald Trump, the latter threatening to impose a 25 percent tariff on all Canadian goods if border security and fentanyl trafficking is not taken more seriously.

Canada was given a 30-day reprieve from the 25 percent tariffs by Trump after Trudeau promised to increase border security and crack down on fentanyl making its way south.  

Since taking office in 2015, the Trudeau government has continued to push a radical environmental agenda like the agendas being pushed by the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”  

Alberta Premier Danielle Smith has been a fierce opponent of Trudeau’s green energy agenda and an advocate for the oil and gas industry.   

Canada has the third largest oil reserves in the world, with most of it being in Alberta. Unlike in other nations, Alberta’s industry is largely considered ethical.

This is not the first time Peterson has accused Trudeau and his government of working against the interests of Canada.

Last year, Peterson formally announced his departure from Canada in favor of moving to the United States, saying his birth nation has become a “totalitarian hell hole.”  

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Break The Needle

Canada-US border mayors react to new border security initiative

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By Alexandra Keeler

US President Donald Trump has linked his threat to impose 25-per-cent tariffs on Canadian goods to Canada’s failure to address drug trafficking and illegal migration at the Canada-US border.

Ontario has responded with a border security initiative, Operation Deterrence, which is drawing tepid support from Ontario mayors of border communities.

“Absence of leadership from Ottawa has created this [scenario] where the provinces are all going in to be Captain, or Miss Captain, Canada,” said Mike Bradley, the mayor of Sarnia, Ont., a city of 75,000 that sits on the Ontario-Michigan border.

“[But] anything that helps on the policing side to deal with the black plague of fentanyl is welcome,” Bradley said.

Operation Deterrence

On Dec. 6, Ontario redeployed 200 Ontario Provincial Police officers to unpoliced border areas near the 14 official Ontario-US border crossings, which are staffed by the Canada Border Services Agency.

Officers are using aircraft, drones, boats, off-road vehicles and foot patrols to “deter, detect and disrupt” the illegal trafficking of drugs, guns and people, a Jan. 7 provincial press release says.

Premier Ford’s office and Ontario Solicitor General Michael Kerzner declined to provide further details about the operation in response to requests for comment.

But a spokesperson for the Ontario RCMP said there is little evidence that fentanyl trafficking is a significant issue at the Canada-US border.

“There is limited to no evidence or data from law enforcement agencies in the U.S. or Canada to support the claim that Canadian-produced fentanyl is an increasing threat to the U.S.,” the spokesperson told Canadian Affairs in an emailed statement.

The spokesperson highlighted that fentanyl trafficking frequently occurs by mail, rather than at physical border crossings.

“Reports state fentanyl produced in Canada is being exported in micro shipments, most often through the mail. Micro traffickers are most often found on the dark web,” the spokesperson said.

As Canadian Affairs reported last week, seizures of fentanyl at the Canada-US border remain relatively low. But Canadian authorities have seized significant volumes of precursor chemicals used in the production of fentanyl, and key sources say Canada is a major player in the global fentanyl trade.

Data also show illegal migration is a concern along the Canada-US border.

The U.S. Customs and Border Protection reported nearly 200,000 cases of individuals in Canada trying to illegally enter the US in the 2024 fiscal year.

Canada Border Services Agency data indicate just under 5,000 individuals were detained trying to enter Canada from the US in 2023-24.

Borderlands

Jim Diodati, the mayor of Niagara Falls, says he is supportive of Ontario launching Operation Deterrence in response to Trump’s tariff threats.

“I’m glad at least we’re reacting,” he said. “The concerns, of course, are that things are slipping through the cracks … both for drugs, guns and human smuggling as well.”

But Diodati stressed that border concerns go both ways. He hopes Operation Deterrence will also address firearms trafficking from the US into Canada.

“Ninety percent of illegal guns that come into Canada come from the US side, across our borders,” he said.

Diodati blames Ottawa for underfunding the Canada Border Services Agency, the federal agency responsible for border security and immigration enforcement. “CBSA needs more resources,” he said.

“The US sees our border as porous, not as secure as theirs, and now, with the incoming president, they’re looking to punish us over it.”

Bev Hand is the mayor of Point Edward, a 2,500-person village located a short drive north of Sarnia, on the southern tip of Lake Huron. The community connects to Port Huron, Mich., by the Blue Water Bridge, a key Canada-US border crossing.

Hand expressed cautious support for Operation Deterrence’s aims of addressing drug trafficking.

She noted that, since 2019, there have been 16 major drug busts at the Point Edward border, including two significant cocaine seizures by U.S. Customs and Border Protection. In December 2023, US authorities found nearly 500 kg of cocaine in a truck entering the US. In August 2024, US authorities discovered over 120 kg of cocaine hidden in the wall of a truck bound for Canada.

“Fifteen of the seizures were in transport trucks,” she said. “This represents millions of dollars in illegal drugs, and we don’t know what wasn’t captured.”

Hand noted, however, that funds allocated to border security might be better spent on addressing the root causes of drug trafficking, such as addiction.

In December, Ottawa announced it would spend an additional $1.3 billion over six years on enhancing its border security. Ontario has not disclosed how much Operation Deterrence will cost.

Like Diodati, Hand also emphasized the role Operation Deterrence could play in helping to curb firearms trafficking from the US.

She referenced a May 2022 case where a resident discovered a bag with 11 handguns in a tree near Port Lambton, Ont., a city approximately 15 kilometres south of Point Edward.

“The package had fallen from a drone that is assumed to have come from the US side,” she said.

 

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‘Fentanyl Czar’

Bradley, Sarnia’s mayor, said border security initiatives must be balanced against the need to facilitate trade, particularly at critical crossings like the CN Rail tunnel — which runs beneath the St. Clair River and connects Canada to Michigan — and Blue Water Bridge.

“We want security, but you also want trade, and that’s the balance right now that we’re struggling with,” Bradley said.

A 13-year review by professors at Carleton University found that tighter Canada-US border security following the 9/11 attacks increased inspection times and delays at the border. This has “negatively impacted” bilateral trade and cost the Canadian economy billions in foregone economic opportunities and productivity.

Diodati, of Niagara Falls, said he would prefer to see Canada and the US take a bilateral approach to border security that focuses on bolstering security around the continent.

“We want to take a perimeter approach around North America, rather than the borders between us,” he said.

While diplomatic relations between Canada and the US are tense, further collaboration on border security may be on the horizon.

On Feb. 3, Trump paused the imposition of tariffs on Canada after Canadian Prime Minister Justin Trudeau promised Canada would send nearly 10,000 frontline personnel to protect the border.

“Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,” Trudeau wrote in a post on social media platform X.

“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.

“Proposed tariffs will be paused for at least 30 days while we work together.”


This article was produced through the Breaking Needles Fellowship Program, which provided a grant to Canadian Affairs, a digital media outlet, to fund journalism exploring addiction and crime in Canada. Articles produced through the Fellowship are co-published by Break The Needle and Canadian Affairs.

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