Frontier Centre for Public Policy
How much do today’s immigrants help Canada?
From the Frontier Centre for Public Policy
Newly arriving immigrants require housing, infrastructure and services right away. But even including other construction workers with the 2 percent who are qualified, working-age artisans, immigrants don’t come close to building the housing they occupy. Along with paying taxes to support new arrivals, oppressive housing and living costs then deter procreation for many would-be parents in the existing population.
The relationship between GDP, productivity, and immigration
It is almost universally accepted that Canada needs immigration and the corresponding population increase to keep the economy going. That is how experts say we are supposed to get economic growth along with improvements in productivity and higher per capita GDP.
But how much of that is true?
First, GDP as a measure of economic activity and national prosperity has limitations. Adjusted for both inflation and the increase in Canada’s population, per capita GDP was in free fall in 2022 and 2023—at minus 2.6 and minus 3.9 respectively.
GDP says nothing about its distribution among the population. Inflation enriches those who own housing and other hard assets, but leaves behind those who do not own them. Notably, with demand overwhelming supply, immigrants’ housing needs and other requirements generate inflation and widen the gap between rich and poor.
It is also necessary to consider what GDP comprises. There is a rough and ready distinction between investment and consumption although the distinction is fuzzy. Broadly speaking, new and more efficient machinery improve productivity, enabling workers to deliver more value for the time they spend working. The consumption part of GDP includes a long list of activities necessary for sustaining life—everything from buying groceries to fixing broken windows, retailing goods made in China, and maintaining the superstructure of government.
Conventional wisdom is that immigration is necessary to make up for the decline in the home-grown population resulting from the birth rate below replacement. But that represents a vicious circle. Much of Canada’s GDP involves building homes and infrastructure, and supporting immigrants—all consumption components. Newly arriving immigrants require housing, infrastructure and services right away. But even including other construction workers with the 2 percent who are qualified, working-age artisans, immigrants don’t come close to building the housing they occupy. Along with paying taxes to support new arrivals, oppressive housing and living costs then deter procreation for many would-be parents in the existing population.
Many employers and politicians promote immigration. That is because immigrants tend to be more industrious and reliable than young home-grown Canadians. Immigrants and their children are generally prepared to work at current pay rates without clock-watching. And there is less pressure to install labour-saving equipment when a pool of people is ready and willing to work for what they get paid.
It’s also necessary to consider that for decades, technology, robots, and more efficient use of labour have been eliminating jobs. Some estimates have it that up to a third of all current jobs will disappear over the next 10 to 15 years. All this said, I look to history and other countries for how changes in population impact productivity and community well-being. In recorded history, the biggest advances in real per capita income occurred in Europe after the bubonic plague killed about half the population between 1347 and 1352. The shortage of labour made workers much more valuable. Feudalism ended and there was a huge surge in wages rates and women’s rights.
In recent times, the population of Japan has been expanding only slowly, and is declining now. In 2023, business capital investments hit a record high at US $223 billion, up 17 percent from the previous year. The question now is whether productivity gains will be enough to sustain its ageing and shrinking population. For Canada, in contrast, per capita business investment, adjusted for inflation and population, has been declining and was sharply lower in 2022-23.
There is another problem. Too many immigrants expect to take advantage of our generous welfare. It may cost $1,000 per person per month to support an immigrant who does not immediately get a job. That must be many times more than it costs to keep that person in a refugee camp.
Of course, Canada has the duty to take in refugees at risk of persecution. And, as Singapore does, employers should be able to hire immigrants for specific top-end jobs where Canada does not have the home-grown expertise.
It is no long-term answer to support people in camps. Troubled countries—Haiti, for example—need security and business investment to enable their self reliance. Countries like Canada need to generate their own wealth to make that possible and not just for the good of our own citizens. This requires diverting GDP back to the non-residential business investment that is the lifeblood of a healthy and sustainable economy.
Colin Alexander’s degrees include Politics, Philosophy, and Economics from Oxford. His latest book is Justice on Trial.
Frontier Centre for Public Policy
Tent Cities Were Rare Five Years Ago. Now They’re Everywhere
From the Frontier Centre for Public Policy
Canada’s homelessness crisis has intensified dramatically, with about 60,000 people homeless this Christmas and chronic homelessness becoming entrenched as shelters overflow and encampments spread. Policy failures in immigration, housing, monetary policy, shelters, harm reduction, and Indigenous governance have driven the crisis. Only reversing these policies can meaningfully address it.
Encampments that were meant to be temporary have become a permanent feature in our communities
As Canadians settle in for the holiday season, 60,000 people across this country will spend Christmas night in a tent, a doorway, or a shelter bed intended to be temporary. Some will have been there for months, perhaps years. The number has quadrupled in six years.
In October 2024, enumerators in 74 Canadian communities conducted the most comprehensive count of homelessness this country has attempted. They found 17,088 people sleeping without shelter on a single autumn night, and 4,982 of them living in encampments. The count excluded Quebec entirely. The real number is certainly higher.
In Ontario alone, homelessness increased 51 per cent between 2016 and 2024. Chronic homelessness has tripled. For the first time, more than half of all homelessness in that province is chronic. People are no longer moving through the system. They are becoming permanent fixtures within it.
Toronto’s homeless population more than doubled between April 2021 and October 2024, from 7,300 to 15,418. Tents now appear in places that were never seen a decade ago. The city has 9,594 people using its shelter system on any given night, yet 158 are turned away each evening because no beds are available.
Calgary recorded 436 homeless deaths in 2023, nearly double the previous year. The Ontario report projects that without significant policy changes, between 165,000 and 294,000 people could experience homelessness annually in that province alone by 2035.
The federal government announced in September 2024 that it would allocate $250 million over two years to address encampments. Ontario received $88 million for ten municipalities. The Association of Municipalities of Ontario calculated that ending chronic homelessness in their province would require $11 billion over ten years. The federal contribution represents less than one per cent of what is needed.
Yet the same federal government found $50 billion for automotive subsidies and battery plants. They borrow tonnes of money to help foreign car manufacturers with EVs, while tens of thousands are homeless. But money alone does not solve problems. Pouring billions into a bureaucratic system that has failed spectacularly without addressing the policies that created the crisis would be useless.
Five years ago, tent cities were virtually unknown in most Canadian communities. Recent policy choices fuelled it, and different choices can help unmake it.
Start with immigration policy. The federal government increased annual targets to over 500,000 without ensuring housing capacity existed. Between 2021 and 2024, refugees and asylum seekers experiencing chronic homelessness increased by 475 per cent. These are people invited to Canada under federal policy, then abandoned to municipal shelter systems already at capacity.
Then there is monetary policy. Pandemic spending drove inflation, which made housing unaffordable. Housing supply remains constrained by policy. Development charges, zoning restrictions, and approval processes spanning years prevent construction at the required scale. Municipal governments layer fees onto new developments, making projects uneconomical.
Shelter policy itself has become counterproductive. The average shelter stay increased from 39 days in 2015 to 56 days in 2022. There are no time limits, no requirements, no expectations. Meanwhile, restrictive rules around curfews, visitors, and pets drive 85 per cent of homeless people to avoid shelters entirely, preferring tents to institutional control.
The expansion of harm reduction programs has substituted enabling for treatment. Safe supply initiatives provide drugs to addicts without requiring participation in recovery programs. Sixty-one per cent cite substance use issues, yet the policy response is to make drug use safer rather than to make sobriety achievable. Treatment programs with accountability would serve dignity far better than an endless supply of free drugs.
Indigenous people account for 44.6 per cent of those experiencing chronic homelessness in Northern Ontario despite comprising less than three per cent of the general population. This overrepresentation is exacerbated by policies that fail to recognize Indigenous governance and self-determination as essential. Billions allocated to Indigenous communities are never scrutinized.
The question Canadians might ask this winter is whether charity can substitute for competent policy. The answer is empirically clear: it cannot. What is required before any meaningful solutions is a reversal of the policies that broke it.
Marco Navarro-Genie is vice-president of research at the Frontier Centre for Public Policy and co-author with Barry Cooper of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).
armed forces
Ottawa’s Newly Released Defence Plan Crosses a Dangerous Line
From the Frontier Centre for Public Policy
By David Redman
Canada’s Defence Mobilization Plan blurs legal lines, endangers untrained civil servants, and bypasses provinces. The Plan raises serious questions about military overreach, readiness, and political motives behind rushed federal emergency planning.
The new defence plan looks simple on paper. The risks are anything but.
Canadians have grown used to bad news about the Canadian Armed Forces (CAF), but the newly revealed defence mobilization plan is in a category of its own.
After years of controversy over capability, morale, and leadership challenges, the military’s senior ranks now appear willing to back a plan that misunderstands emergency law, sidelines provincial authority, and proposes to place untrained civil servants in harm’s way.
The document is a Defence Mobilization Plan (DMP), normally an internal framework outlining how the military would expand or organize its forces in a major crisis.
The nine-page plan was dated May 30, 2025, but only reached public view when media outlets reported on it. One article reports that the plan would create a supplementary force made up of volunteer public servants from federal and provincial governments. Those who join this civil defence corps would face less restrictive age limits, lower fitness requirements, and only five days of training per year. In that time, volunteers would be expected to learn skills such as shooting, tactical movement, communicating, driving a truck, and flying a drone. They would receive medical coverage during training but not pensionable benefits.
The DMP was circulated to 20 senior commanders and admirals, including leaders at NORAD, NATO, special forces, and Cybercom. The lack of recorded objection can reasonably raise concerns about how thoroughly its implications were reviewed.
The legal context explains much of the reaction. The Emergencies Act places responsibility for public welfare and public order emergencies on the provinces and territories unless they request federal help. Emergency response is primarily a provincial role because provinces oversee policing, natural disaster management, and most front-line public services. Yet the DMP document seems to assume federal and military control in situations where the law does not allow it. That is a clear break from how the military is expected to operate.
The Emergency Management Act reinforces that civilian agencies lead domestic emergencies and the military is a force of last resort. Under the law, this means the CAF is deployed only after provincial and local systems have been exhausted or cannot respond. The Defence Mobilization Plan, however, presents the military as a routine responder, which does not match the legal structure that sets out federal and provincial roles.
Premiers have often turned to the military first during floods and fires, but those political habits do not remove the responsibility of senior military leaders to work within the law and respect their mandate.
Capacity is another issue. Combat-capable personnel take years to train, and the institution is already well below its authorized strength. Any task that diverts resources from readiness weakens national defence, yet the DMP proposes to assign the military new responsibilities and add a civilian component to meet them.
The suggestion that the military and its proposed civilian force should routinely respond to climate-related events is hard to square with the CAF’s defined role. It raises the question of whether this reflects policy misjudgment or an effort to apply military tools to problems that are normally handled by civilian systems.
The plan also treats hazards unrelated to warfighting as if the military is responsible for them. Every province and territory already has an emergency management organization that monitors hazards, coordinates responses and manages recovery. These systems use federal support when required, but the military becomes involved only when they are overwhelmed. If Canada wants to revive a 1950s-style civil defence model, major legislative changes would be needed. The document proceeds as if no such changes are required.
The DMP’s training assumptions deepen the concerns. Suggesting that tasks such as “shooting, moving, communicating, driving a truck and flying a drone” can be taught in a single five-day block does not reflect the standards of any modern military. These skills take time to learn and years to master.
The plan also appears aligned with the government’s desire to show quick progress toward NATO’s defence spending benchmark of two percent of GDP and eventually five percent. Its structure could allow civil servants’ pay and allowances to be counted toward defence spending.
Any civil servant who joins this proposed force would be placed in potentially hazardous situations with minimal training. For many Canadians, that level of risk will seem unreasonable.
The fact that the DMP circulated through senior military leadership without signs of resistance raises concerns about accountability at the highest levels. That the chief of the defence staff reconsidered the plan only after public criticism reinforces those concerns.
The Defence Mobilization Plan risks placing civil servants in danger through a structure that appears poorly conceived and operationally weak. The consequences for public trust and institutional credibility are becoming difficult to ignore.
David Redman had a distinguished military career before becoming the head of the Alberta Emergency Management Agency in 2004. He led the team in developing the 2005 Provincial Pandemic Influenza Plan. He retired in 2013. He writes here for the Frontier Centre for Public Policy.
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