Even in the depths of recession, the province sent Ottawa $92 billion more than it received between 2014 and 2017: Fraser Institute
The federal government’s deficit in 2017 would have reached a staggering $39 billion – instead of the $19 billion recorded – if not for the disproportionate net revenue contributions from Alberta, according to a new study released Thursday by the Fraser Institute. The study, How Albertans Continue to keep Federal Finances Afloat, said that between…
Future generations will pay higher taxes to finance today’s debt growth. And what has this record debt brought us?
By Jake Fuss and Milagros Palacios The Fraser Institute Throughout its mandate, rather than acting to reduce the federal budget deficit, the Liberal government has made “investments” in the form of more and more spending. Of course, this plan relies on a wave of good fortune – with positive economic growth and higher-than-expected revenues each…
Will the Norman affair have more political impact than SNC-Lavalin when voters head to the polls this fall?
What will be the bigger political scandal involving Prime Minister Justin Trudeau and the Liberal government? SNC-Lavalin is well out in front, but the Norman affair is slowly starting to catch up. It all begins with a $668-million deal signed by former Conservative prime minister Stephen Harper with the Quebec-based shipbuilding company Chantier Davie Canada…
How does a Liberal government that can’t campaign on its abysmal record go about gaining re-election?
As the federal election approaches, the Liberal government’s record has become increasingly more difficult to defend. Prime Minister Justin Trudeau’s promise in the last election that he would run only ‘modest’ deficits has burgeoned into a national debt increase that is bigger per person than that racked up by any government in Canadian history, outside…
Liberals “backstop” carbon-tax will lead to $30 a tonne next year for Alberta, 50% higher than the rate currently in place in Quebec
By Jean Michaud and Germain Belzile Montreal Economic Institute New Alberta Premier Jason Kenney has vowed to repeal the provincial carbon levy implemented by the previous NDP government. That tax began in 2017 at $20 a tonne and rose to $30 a tonne before the NDP froze it in protest to delays over the Trans…
The trust gap between industry and government has grown, and they’re butting heads more frequently
Food industries need to be regulated. But the delicate balance between protecting the public and supporting industrial growth may have reached a tipping point in Canada. In the Western world, governments successfully play the anti-business card by implementing regulations so consumers feel someone is looking out for them. But governments are also flirting with populist…
The economic damage to the energy industry is due largely to government regulatory and tax policies
By Steven Globerman and Joel Emes The Fraser Institute Canadian oil and gas companies face major problems, in great part due to government policy. Legal restrictions on the expansion of pipeline capacity have restricted exports of oil, shrinking profit margins. The subsequent price decline for Western Canada Select oil spurred former Alberta premier Rachel Notley…
Even in our law-abiding, transparent country, graft happens. In some countries, it’s the cost of doing business
Federal politics are transfixed by apparent managerial indiscretion yet again. SNC-Lavalin – whose officials have been found guilty of corruption in the past – faces criminal prosecution with consequences that could cripple it if found guilty. The company would face a ban on federal contracts for years, and such a ban could be honoured by…
The burden of the debt financing falls on the whole population, and low-income Canadians can least afford to contribute
There’s been much talk about the federal government’s attempts to enact redistributive policies to reduce income inequality in Canada. But the way these measures are funded could increase inequality. One think-tank in Quebec surveyed a panel of 70 policy experts who noted that the latest federal budget would, on the whole, reduce inequality. I contributed…
From canola to peas and soybeans, the Chinese are using our commodities as bargaining chips in a diplomatic dispute
Canola was first, and now peas and soybeans. It was highly predictable. And given how things have progressed over the last five months, the situation can only escalate. The Canadian government has pledged to help farmers affected by our epic spat with China. But other than offering cash or support to develop new markets for…
TD Economics report admits the rules brought housing activity down to a more sustainable level
Sixteen months after being introduced, the federal government’s mortgage stress test continues to be felt in all corners of the housing market, says a new report by TD Economics. The report, Assess the Stress: Examining the Impact of the B-20 Rules on Housing 16 Months Later, said the mortgage rules distorted sales activity before and…
Trade sanctions are blunt, costly instruments. They should only be used as a last resort
The first free-trade agreement between China and Canada appears all but dead, derailed by a diplomatic dispute. Canadian consumers and entrepreneurs will suffer as gains from trade fail to materialize. Despite the gravity of Beijing’s many wrongdoings, trade should still proceed between innocent private parties. The opposite tack – broad impediments to trade, even if…
What would possess the ‘selfie PM’ to smile for the cameras at a flood zone with people’s lives hanging in the balance?
There are pros and cons to a national leader appearing at a natural disaster. For every act of goodwill, someone will question the motive behind this visit. For every bead of sweat on the brow, someone will wonder if he or she wouldn’t rather be somewhere else. By and large, the positives far outweigh the…
Canadians are concerned about jobs and the rising costs of combating climate change, not vague platitudes
“Hey buddy, your ‘sunny days’ Justin pal is looking pretty rough these days. I'm thinking we could see the Conservatives back in power come October.” My heart sank. I knew I was in for another heated dispute with my old friend Charlie, a diehard conservative if ever there was one. “First,” I replied, “Trudeau's not…
Mounting debt pushes up interest costs, consuming resources that could be used to fund important public services or provide tax relief
By Jake Fuss, Finn Poschmann and Milagros Palacios The Fraser Institute The 2019 federal budget, delivered last month, firmly establishes the fiscal legacy of Justin Trudeau. It's not a positive legacy. No Canadian prime minister has spent more money per person (all figures inflation-adjusted) or accumulated more debt per person outside of a world war…
The federal government’s deficit in 2017 would have reached a staggering $39 billion – instead of the $19 billion recorded – if not for the disproportionate net revenue contributions from Alberta, according to a new study released Thursday by the Fraser Institute. The study, How Albertans Continue to keep Federal Finances Afloat, said that between…
