There were some fairly big changes announced yesterday, but the way in which it was reported was interesting if you compared coverage. For example, The Canadian Press led with the headline of a $19-billion federal deficit last year, but didn’t explain until the fifth paragraph that the accounting rules had changed, and described it as “confusing matters,” and then engaged in both-sidesism to have the Conservatives rail about the size of the deficit rather than really explain what the changes meant. The Financial Post mentioned the changes in the second paragraph, but focused on the size of the deficit. It was the CBC’s coverage that spent the full story focused on the accounting rules changes and what they mean, and how that affects the reporting of the figures, which has a lot to do with unfunded pension liabilities that are now being put on the books in a transparent manner that the Auditor General has been calling for, for years now. Context like this is important, and it’s disappointing to see it obscured because writing about the deficit figures is sexier without explaining what they mean, so well done there. You’re really serving your readers.

As with any of these stories, however, the best commentary came from some of the best economists on Twitter, who put it all into context. The full Kevin Milligan thread explaining it all is here, but I’ll post some select highlights.

https://twitter.com/kevinmilligan/status/1053342629574828032

https://twitter.com/kevinmilligan/status/1053346059693346816

He also busted the myths about the deficit spending by pointing to the $70 billion hole in GDP that the Liberals were left with when they took office, in part because of the oil downturn and technical recession that the Conservative narrative keeps ignoring.

https://twitter.com/kevinmilligan/status/1053393949417586688

https://twitter.com/kevinmilligan/status/1053395164318752768

https://twitter.com/kevinmilligan/status/1053403984411582464

Also, Mike Moffatt points out the significance of those accounting rules around pension liabilities on the reporting of the books.

https://twitter.com/MikePMoffatt/status/1053342822017982465

https://twitter.com/kevinmilligan/status/1053354656384962560

Good reads:

• Officials from Mexico’s incoming government will be in Ottawa on Monday to try and establish the bilateral relationship with them.
• While some people want the government to capitulate on steel quotas – which they won’t – it looks like some $1.1 billion in tariffs have been imposed in this dispute.
• There continue to be calls for Bill Morneau to do some kind of capital cost write-downs to remain competitive with US tax cuts (which are deficit-financed).
• The government is being secretive in the consultations for its anti-racism strategy as a means of avoiding public spectacles.
• The government gave $12 million to a company looking to extract magnesium from asbestos tailings as it’s one way to remediate the tailings ponds.
• The government has chosen Lockheed Martin and the BAE Type 26 warship as the new surface combatants for the Royal Canadian Navy.
• The new fisheries bill is now in the Senate.
• Inuit leaders have pulled out of the consultations on food security because they say the process is tokenism and isn’t meaningfully engaging with their needs.
• Over in New Brunswick, the Liberals look like they’ll relent in putting up a Speaker so that the Speech from the Throne can go ahead.
• Saskatchewan’s Court of Appeal won’t hear the province’s challenge of the federal carbon price backstop until spring next year, so it will already be in place by then.
• Chantal Hébert looks at how the different federal parties are all trying to claim some aspect of the new CAQ government in Quebec for their own purposes.
• Robert Hiltz remarks at how for all of François Legault putting forward the notion that his government are a bunch of squares, they’re promising radicalism.
• Martin Patriquin writes about how the Conservatives are shooting themselves in the foot over their carbon price obstinacy, which won’t win them Quebec votes.
• Colby Cosh justifiably heaps scorn on Quebec Solidaire for their theatrical refusal to utter their oath to the Queen in public.

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