There are a couple of things, not particularly related, that have caught my eye recently.
First, Canadians received an early Christmas present last week, assuming that in this woke society, we are still allowed to call it Christmas.
Offering a two-month suspension of the HST on a number of key items was a brilliant political move on the part of Prime Minister Justin Trudeau and his struggling Liberal government. It will undoubtedly be helpful to a number of people in Canada and a temporary boon to many small businesses.
Despite the fact that it was not all his to give.
The HST is a harmonized sales tax that combines that particular revenue source for both federal and provincial governments. Without agreement from the provinces and territories, Trudeau simply gave away tax revenue that would normally fall to them. A couple of provinces are protesting this, and there is a real question of whether the federal government can legally give away revenue that belongs to provincial jurisdictions.
However, it is somewhat of a moot point because those who protest too loudly over Mr. Trudeau’s perceived benevolence may well be seen as the Grinch who stole Christmas.
The Trudeau Government will get full credit for the HST holiday, and there is not much the provinces can do about it. Whether or not this will give the federal Liberals a badly needed bump in the polls remains to be seen.
There can be no question, however, that this is what it’s all about: a bold political move prior to an election to gain support and, consequently, votes. Doubling down on this, the Trudeau Government is also promising a $250.00 bonus to millions of Canadians this Spring, closer to an election, just to make sure folks don’t forget how generous they are.
This government largesse is not limited to the Trudeau Liberals. Also contemplating an election within the foreseeable future is Doug Ford and his Progressive Conservative government in Ontario. He is promising $200.00 to every Ontario citizen over the age of 18 to be delivered early in the New Year.
I must say that when this was announced by the Ford Government a couple of weeks ago, there was no shortage of blowback and cries of buying votes by those on the left of the political spectrum, including Ontario Liberal Leader Bonnie Crombie. Now that the Trudeau Liberals have gone one better, with both an HST holiday and a cheque for $250.00 for every working Canadian earning less than $150,000 a year, the silence from those same folks, including some mainstream media, is deafening. I guess it depends on who is doling out the dough.
In my view, there is an argument to be made for the government giving back money to the people who gave it to them in the first place. That, however, is contingent on them not needing the revenue for things the government is actually supposed to do. It is also a signal that they have been collecting more taxes than they need to.
There are a number of serious issues for which government at one level or another has a serious mandate to provide adequate funding. To name only two, these include topping up defense spending to meet our NATO commitment at a time of significant unrest in the world, and an acute decline in health care services in Canada, including Ontario, with an alarming shortage of physicians.
Of course, many will welcome financial “gifts” from governments to Canadians. The cost of these may be a drop in the bucket compared to other priorities. However, I believe most Canadians, even those who can really use these funds, will see these payments for what they are: A timely government bribe. There are two elections coming, and these are goodies designed to make us feel better about voting for the incumbents.
The second issue that caught my eye recently involves the arrest warrant issued by the International Court of Justice (ICC) for Israeli Prime Minister Benjamin Netanyahu, charging him with war crimes. To be clear, I recognize how controversial this is, and I am not commenting here on whether this decision is right or wrong.
I am, however, concerned about Prime Minister Justin Trudeau’s reaction to this decision. Since the election of Donald Trump as the next President of the United States, the Trudeau Government has been adamant that they have plans in place for this and believe they can have a positive working relationship with the Trump Administration in the United States.
Trump’s Administration is totally committed to Israel, come hell or high water. The Trudeau government’s position is much more wishy-washy.
In the last day or so, Prime Minister Justin Trudeau has declared that if Benjamin Netanyahu were to step foot in Canada, he would be arrested. That prompted veteran and influential United States Republican Senator Lindsey Graham to respond by saying the United States would place sanctions on Canada and crush our economy.
Perhaps not a good start to establishing a workable relationship with the reality of a Trump Administration in the United States. All politicians, particularly Justin Trudeau, are experts at ducking hard questions. This might have been a good time for the Prime Minister to do just that.
Sometimes, it’s best to just keep your mouth shut.
Hugh Mackenzie
Hugh Mackenzie has held elected office as a trustee on the Muskoka Board of Education, a Huntsville councillor, a District councillor, and mayor of Huntsville. He has also served as chairman of the District of Muskoka and as chief of staff to former premier of Ontario, Frank Miller.
Hugh has also served on a number of provincial, federal and local boards, including chair of the Ontario Health Disciplines Board, vice-chair of the Ontario Family Health Network, vice-chair of the Ontario Election Finance Commission, and board member of Roy Thomson Hall, the National Theatre School of Canada, and the Anglican Church of Canada. Locally, he has served as president of the Huntsville Rotary Club, chair of Huntsville District Memorial Hospital, chair of the Huntsville Hospital Foundation, president of Huntsville Festival of the Arts, and board member of Community Living Huntsville.
In business, Hugh Mackenzie has a background in radio and newspaper publishing. He was also a founding partner and CEO of Enterprise Canada, a national public affairs and strategic communications firm established in 1986.
Currently, Hugh is president of C3 Digital Media Inc., the parent company of Doppler Online, and he enjoys writing commentary for Huntsville Doppler.
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Mr Wilkin: I used (for example) https://databank.worldbank.org/indicator/NY.GDP.PCAP.CD/1ff4a498/Popular-Indicators for the World Bank.
I have not used “Advanced Economy” as it is not a defined economic term….even the IMF who uses (World Bank does not) it does not define the term, It is used to casually classify countries. So I used ALL World Banks economic units to avoid “selection bias”.
In that context, you will note that Monaco has the highest GDP per Capita (further all tax havens are at the top of the list….that they are political creations, I see no reason to exclude them), but is not a “{developed” or “advanced” economy
All in all, I stand by my claim. This government’s economic performance can hardly be called a disaster over the past 9 years when its economy is rising against the other world economic units. You are letting your political bias taint your objectivity.
Joanne Tanaka: You got it right. Giving businesses money to run themselves is just plain folly. And yet we see governments dance and jig when they blow a couple hundred million of we tax payers money to bring a project to an area. Not always, but sometimes without conditions. “Oh my. The project fell threw! And the money’s gone? We’ll have to tap those taxpayers again.”
I was never a fan of the government revving up the mint to spot people $500.00 a week during Covid. It was too much, too easy, too out of control. But I wonder how many of the comments (maybe even here on Doppler) against Trudeau and the Liberals are by people whose outstretched hand never even quivered when taking the money?
I noticed the reference to Milton Friedman, averring that governments are responsible for inflation. Does that mean they act in unison, because inflation isn’t generally isolated in one place. And critics of the Friedman Theory say it’s wrong on many fronts: “financially, legally, morally, economically and socially”. So not everyone agrees with his hypothesis. And he was simply another dude with a theory. Hard to pay bills with a theory since most businesses prefer cash.
Lord knows there are those who disagree with most everything, the comments here being obvious examples. For every run of figures there is another. Kind of like Newton’s third law. “For every action there is an equal and opposite reaction.” However Newton’s Law is science and most comments here are spitballing.
I do agree with Dave Wilkin inasmuch as it will take a long time to sort through the ills of our government and the blight they have inflicted on the country. It has been a lot of past party policies of all stipes to get us to this point. They can all claim a bit of the damage.
I sure wish I could see someone who had the voice and policy to give us hope. The choices we have at present are best summed up in the idiom, “the Devil and the deep blue sea.”
When people say things like there has been government mismanagement of the “economy” what specific policies do they mean? Income supports to individuals?Accessible health care for all? Decent public education? Granted there should be more spending for public education and health care and disability benefits- is that what is meant by mismanagement of the economy?Or do they mean large subsidies to the fossil fuel industry like “investment” in risky pipelines, unproven carbon capture schemes, grey hydrogen dreams, handouts to clean up abandoned oil and gas wells? If free enterprise free from government support cannot meet its own costs for production and deliver safe unpolluting products that we actually can use like truly affordable housing, without damaging our irreplaceable environment, how can we expect Free Enterprise unfettered from regulation to “manage the economy” when they can’t manage themselves by themselves? They do not even think they need to cover their own very real costs of doing business, yet congratulate themselves on their profitability. How clever is that for fooling gullible taxpayers and then blaming the government who bought them a pipeline.
Paul Whillans, I checked your claim that Canada is moving up the ranks relative to other countries on a GDP per capita basis (pointing to IMF and World Bank data), as I didn’t believe it. Here is what I found looking at IMF data:
In 2015 Canada was $43,628, and for Advanced Economies, the average was slightly less, at $43,218, Canada sat at #18 in country rankings. In 2023, Canada was $53,607 vs. $56,926 for Advanced Economies, and we slipped 1 to #19 in the ranking. The IMF forecast for the end of the decade is for Canada to fall further behind. Not sure what data you were looking at.
Canada’s economy under the Trudeau Government has not done very well, and for the last 6 quarters, GDP per capita has actually declined, so the trend is not good. Many Canadians are now worse off today than in 2015. Given that many of the root causes are structural in nature, stemming from economic mismanagement, it will likely take years to turn around by the next government.
Trudeau’s plan is to target a specific group of voters by giving $250 to people that earned less than $150, 000 a year. Pensioners, people on social assistance etc., won’t get the $250. Ford’s plan is to give $200 to everyone. That makes Ford’s plan fair to all. not targeted like Trudeau’s. Both plans are designed to get or keep votes. Both plans are designed to buy votes with our own money. ARE WE THAT STUPID. I think not. Why would Trudeau take the tax off non essentials like beer, wine, restaurant meals? TO BUY VOTES. Home heating is essential but Trudeau only removes taxes on home heating in certain places. Why not remove it for all Canadians? Remember covid when Trudeau handed out our money like it was candy and called an election hoping to regain a majority? I remember , and I think most other voters do as well.
Mr Breen…..If your sole argument against the current federal government is “Trudeau and the federal Liberals deserve to suffer electoral annihilation for what they’ve done to this country’s economy and future prospects.”, I am unclear how you define “country’s economy”……In 2015, Canada ranked 22nd in the world in GDP per capita according to the World Bank. In 2023, Canada ranked 16th on the same index (IMF shows similar results). I have always assumed that this is the purest measure of economic function. You must be talking about something else.
I have other issues with this government but gross economic output surely is not one of them
I encourage those who can afford to, to donate their $200 and $250 to a favourite community charity like the food bank or Community Living to make life a bit better for someone who really needs it. It might have been better if both the Ontario and Federal governments had directed these funds to top up disability benefits to a livable level. The incoming cold conservative waves will make life much tougher for many already in need.
Hugh Holland, did you read my post? I don’t think you did otherwise you wouldn’t be relying on strawman arguments and red herrings.
1. I never said Canada’s current inflation rate is higher than the US or Europe because it doesn’t matter. What matters is that it hit a 40 year high and did so directly due to the failed policies of Justin Trudeau/federal Liberals. The PM is responsible for the cost of living crisis due to his complete economic ignorance. The fact is that budgets don’t “balance themselves” and you don’t build an economy “from the heart out”. Having a PM who proudly declares he “doesn’t think about interest rates” and is “leaving the economy to the bankers” results precisely in the type of mess he created and we’re all trying to now navigate, no group more than the working class and poor.
2. You repeatedly excuse Trudeau’s horrific economic and fiscal record on the basis that inflation was unavoidable. Nothing could be further from the truth. And yes, China is a relevant example, because it didn’t stimulate like the west and avoided inflation, much like numerous other nations.
3. Who said anything about “death rates?” Biden took over from Trump and immediately spent more money in two-three years than the US did fighting the Second World War. THIS IS INFLATIONARY. The Democrats owe Joe Manchin a debt of gratitude for saving them from themselves. The trillions they spent was already bad enough to create generationally high inflation….and precipitate the return of Trump.
4. Medical expenses? You’re grasping at straws. Inflation is a tax on the poor. Imposing crippling inflation and taxes is the best way to hurt the vulnerable.That’s why the poor are abandoning left-leaning parties in droves.
5. We’re all well aware of your obsession with climate change. It has no relevance to this discussion.
In sum, Trudeau and the federal Liberals deserve to suffer electoral annihilation for what they’ve done to this country’s economy and future prospects. I look forward to it.
The $250 handout is insufficient to make a meaningful difference for so many struggling with the high cost of living, and excluding retired seniors and others not working in 2023 just ticked off another bunch of voters. The short-term tax break on mostly nonessential items looks even more desperate. Neither of these plays will do anything to help save the sinking Trudeau government.
Meanwhile, the big issues facing Canada continue – a struggling economy (worstened by strikes), lagging productivity/business investment, a healthcare crisis, an immigration/border mess, expanding government waste/bloat and diminished respect/clout on the world stage, especially with NATO allies.
We need a much more serious Federal government, fast.
For those keeping score at home, the Finance Minister of a supposedly G7 country said today that Canadians are just in a “vibe-cession”, and suggested that if we just enjoy enough tax free liquor this holiday, then we’ll come to our senses and realize how great things are, and especially how great the Trudeau government is.
18 years ago, Mike Judge released the movie “Idiocracy”, thinking that it would just be a light satire simply meant to amuse people. He had no idea just how prophetic his comedy film was going to be. It was just waiting for the right nepotism baby idiot to be elected.
“Vibe-cession” will go into the books along with “peoplekind”, “drink box water things”, and the many other cringeworthy statements made by this fool Trudeau and his corrupt team
Jim Breen, inflation rate is important but it’s not the be-all end-all. The best countries to live in are the ones that help vulnerable citizens through difficult times not of their own making. Several of your facts are incorrect. Canada’s inflation rate is currently lower than the USA, UK, and most of the EU. You must be carful comparing inflation and economic data to a country like China with a one-party government.
Biden was not in charge during the Covid pandemic, and Trump’s US death rate was 3 times Canada’s. How many businesses / jobs would have gone under without covid assistance. How many US citizens are going bankrupt every year for medical expenses?
Looking ahead, how many people will lose their homes and incomes from the fast-growing number of extreme climate events when they can’t get insurance?
I have one short & sweet comment. It’s like someone breaking into my house taking my money then giving me a tip on the way out!!!! where is this money coming from? is it coming from all the iou’s the Feds have around the world? or are they just printing more money? do something about price increases that are way out of balance to cost of production again as we repeat history the producers are being ripped off and the end user is as well gross profits in the middle are criminal!! PERIOD oops I wasn’t short & sweet
“Inflation is always and everywhere a monetary phenomenon” – Milton Friedman. Put another way, inflation is a choice that government’s make.
Mr. Holland’s understanding of economics and inflation is at best suspect or at worst deliberately coloured by his partisanship.
Trudeau and Biden and leaders across the West CHOSE to pursue highly inflationary policies. Their establishment of “fiscal dominance” (i.e. unprecedented government spending) coupled with accommodative monetary policy from perpetually behind the curve central banks like the Fed, BoC and ECB created persistent and potentially structural inflation.
Blaming global dynamics and “greedy CEOs”, etc. is a lot easier than admitting its your fault or, actually taking the time to learn the basics of economics (Looking at you Mr. Jagmeet Singh and “Mr. I’ll let the bankers worry about the economy, Trudeau.”)
The reductive, fatalistic excuse that Canada’s inflation was inevitable, unavoidable and the result of some indiscernible, global force is incorrect and disingenuous.
Many nations did not experience inflation. Those that chose a responsible fiscal and monetary path avoided the inflationary plague; those that didn’t flood the system with new money such that incomes went up for the first time in a recession ever (i.e. covid handouts); those that didn’t institute Quantitative Easing and manipulate their own bond markets to artificially lower the cost of borrowing, etc.
Brazil, China, Japan, experienced virtually zero inflation throughout the Covid/post-Covid period precisely because they didn’t follow the Trudeau/Biden game plan of insane levels of spending.
Make no mistake. Canada’s inflation was the direct result of the federal government flooding the economy with newly created money. Same is true for Mr. Biden and his hilariously and cynically named “Inflation Reduction Act” (an act that greatly contributed to inflation).
The cost of living crisis is the consequence of sovereign governments choosing to spend and “print” more money to make it possible.
It’s Trudeau’s fault and there’s no doubt about it. Regardless of what Mr. Holland and the TruAnon people on twitter want you to believe.
Wishy Washy….That says it all .
How dare the Ford Conservatives and the Trudeau Liberals take a page out of Mr. “Axe the Tax” Poilievre’s playbook while Poilievre himself smirks, ignores reality, and gets daily press coverage by ranting on and on about Trudeau being solely responsible for everything bad under the sun.
The recent spike in the cost of food and human migration is global and is beyond the control of any individual government. 2023 and 2024 set new records for high temperatures, drought, and lower crop yields on every continent. Look it up. Cattle ranchers in the western US and Canada are downsizing herds because they can’t feed them. So, beef prices are up 50% in a year. Food prices and migration are more likely to go up than down until there is some relief on global warming. That requires action from both producers and consumers. Neither side can do it alone.
So, providing some short-term financial relief at this time of year will be welcomed by both retailers and consumers. You can’t criticize or praise Ford or Trudeau without criticizing or praising both, but the Liberal’s cuts are fairer and more sensible as they are limited to people making under $150,000.
Poilievre’s proposed tax cuts are different. His vow to “axe the refunded carbon tax”, that was implemented by 65 enlightened countries, is an illusion that will make no difference to personal or government finances because there is nothing to cut, other than the incentive to reduce emissions which would be counter-productive to the dangerously escalating costs of climate change. Poilievre implies his other promised cuts would be permanent and would therefore require cuts to unspecified government services, and unspecified “waste?” Which cuts do you want?
Building a future based only on cuts is a negative approach consistent with Poilievre’s lifetime career as a critique. The world is at a tipping point. To help solve the global and local climate / economic crisis, Canada must transition ASAP to all ways of producing and using clean energy. That is what the center-ground Liberals have been doing and must continue to do.
Justin….All I want for Christmas from my federal government is to take my tax break and put it towards our NATO commitment of reaching 2% of GDP, and not waiting till 2032!!
Look at the world around us, and how fast it is changing…..our country needs to be “at the ready” in lock step with our allies, and stop playing the “delay” game.
It will take more than a government throwing around HST money to get my vote in the next election.
A tax break for ALL Canadians?
I guess seniors and the disabled are not Canadians
according to the man child?
I wish that Netanyahu would call the coward Trudeau’s bluff, and immediately travel to Canada. His political record aside, Netanyahu was a veteran of the IDF special forces, and was wounded multiple times in combat. The very unserious and ridiculous Trudeau spent Friday night dancing at a pop concert, while his own city was burning during violent protest. Trudeau of course isn’t worth a second of Netanyahu’s time, but it would still be very satisfying to see the man put the foolish little child in his place.
I didn’t agree with Doug Ford’s $200 Liberal like give away of taxpayers money, and certainly not happy with Trudeau’s largesse with my money either. If Trudeau wanted to help small business he wouldn’t be making people, keep from starting their Christmas shopping until all the Black Friday discount days are over!
With the feds only having 5% of the HST while the province has 8% means the Liberals are giving away a much smaller portion than the province has to if Ontario participates.
What is another $6 Billion to a government that says banks look after the economy, not them. This is just another promise the Liberals will need to borrow money for, if they keep their promise?