Tag Archives: Foreign Aid

Roundup: The GDP data and the “collapsing” economy

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Yesterday was the day that Statistics Canada released the quarterly GDP figures, and they were middling. The economy is sluggish, but 1.0% annualized growth in the quarter is growth, and it bears repeating that we have avoided a recession after the inflationary spike, so this is the “soft landing” that the Bank of Canada was aiming for. And because growth is sluggish, there is plenty of talk that the Bank will likely make another 50 basis point cut in December rather than 25.

The Conservatives rushed to make hay of these numbers, particularly the fact that per capita GDP fell by 0.4% over the quarter, which was the sixth quarterly decline. (Yes, there was revised data that pushed up growth and made the quarterly decline less pronounced for the past two years). And why has there been a decline in per capita GDP? Because at the end of the lockdowns, we ramped up immigration to combat labour shortages, and all of those new workers pushed up our growth enough to avoid a recession, and because the denominator has been increased faster than the numerator, it’s a pretty solid indication that the growth could very well be much stronger once we get it back on track. To that end, the Conservatives’ press release compared our non-annualised figures to the American annualised numbers to make ours look worse (they later issued a correction), and put out misleading tweets that blame Trudeau and not the 2014 collapse in oil prices for the so-called “economic vandalism” that they believe that simple line graphs show.

https://twitter.com/maxfawcett/status/1862538994221031782

And then there was the absolute mendacity in Question Period. Michael Chong said that the estimated effect of Trump tariffs was less than what Trudeau has done (which is both false and stupid), and Corey Torchor, unbelievably, claimed that the StatsCan data showed that the economy was “collapsing,” and I wish I was making that up. In no way did any of that data indicate that there was anything resembling “collapse.” Sluggish, yes. Collapsing? How? Either the Conservatives are just outright lying with statistics, or they have no clue how to read GDP data (or maybe both). And the funny thing is that all of this concern about declining per capita GDP is a pretty de facto way of saying that they are cheering for an actual recession, which we would have had if we hadn’t juiced immigration the way we did. I wish this wasn’t so stupid, and I wish we had more journalists calling this out, but we don’t because “I was told there would be no math.”

This is incredibly mendacious framing.GDP per capita largely declined because of the influx of immigration, which staved off an actual recession. Saying that Trump tariffs would do less damage than the current government is both stupid and wrong.

— Dale Smith (@journodale.bsky.social) 2024-11-29T21:15:09.167Z

Tochor claims that StatsCan reported that our economy is “collapsing.”Bullshit. Complete and utter bullshit. He doesn’t know how to read GDP data and is going to just lie. #QP

— Dale Smith (@journodale.bsky.social) 2024-11-29T16:37:05.538Z

Ukraine Dispatch

Russian drone attacks hit residential buildings in Kyiv and Odesa, injuring eight. Ukrainian forces are facing a desertion crisis because of overstretched forces, psychological scarring, and the management of the war. Ukraine’s army chief is pledging more troops on the eastern front after visiting there. Here is a look at Ukrainians dismantling a thermal power plant before the Russians can advance on it.

https://twitter.com/ukraine_world/status/1862448598702596345

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Roundup: A Pollyanna about Tuesday’s outcome

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I have not said much about the American election because not my circus, not my monkeys, and I really can’t get worked up about a contest I have no say in, however, comments made by the US ambassador to Canada this weekend have utterly boggled my mind. “I firmly believe that regardless of the outcome of the election, the United States is going to remain the most durable democracy in the world,” David Cohen said, and went on about how democracy will “easily” survive whatever the outcome of that election.

No. America has been teetering on the brink of autocracy for a while now, and while I get that his job is to be blandly reassuring as the ambassador, this just smacks of being a giant Pollyanna. And for Canada, where so much of what happens in the US leaks over the border and affects our politics here, those autocratic impulses are not far behind either. We already have provincial governments using tactics lifted directly from the authoritarian playbook, as is Pierre Poilievre, and he’s not shy about it either. And if America stops defending other democracies around the world under an autocratic regime, things are going to get very difficult indeed as these democracies are under threat from Russia and other autocratic actors who want to break them in order to show their own populations that democracy doesn’t work, so better to suck it up and live with the corruption of their autocratic states. And then there is Trump’s vision of NATO as a protection racket, that he fully intends to upend, and already Viktor Orbán is salivating at the thought of a Trump victory handing Ukraine to Russia, destroying a democracy the way he has been doing in Hungary.

There will be consequences, and I don’t think it helps anyone for Cohen to shrug it off like that.

Ukraine Dispatch

A Russian guided bomb hit a supermarket in Kharkiv, injuring at least five. Ukrainian forces destroyed 66 out of 92 Russian drones sent into the country overnight Saturday, and fortunately, no casualties were reported. Russians have also taken control of the village of Vyshneve in the Donetsk region, while Ukrainian forces hold back one of the most powerful offensives since the start of the invasion.

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Roundup: Another threatened frivolous lawsuit

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There is a weird little case of monkey-see-monkey-do happening between different conservative parties around the country that has accelerated with the three provincial elections, and Danielle Smith’s upcoming leadership review, and it would all be childish if the stakes weren’t so high. A few days ago, Scott Moe started claiming that the federal carbon levy was costing the jobs of teachers and nurses in the province—a transparently bullshit claim—but the talking point got picked up in Question Period by Pierre Poilievre, and soon other premiers were doing it, including Danielle Smith. Yes, it demonstrates an intellectual and moral bankruptcy that is stunning to behold, but also just how little imagination there seems to be among parties on the right in this country (not that the NDP has much imagination of their own, as they crib the notes of the “justice Democrats” in the US with alarming frequency).

After Blaine Higgs declared that he was going to launch a fresh legal challenge against the federal carbon levy—which will immediately be thrown out of court—Danielle Smith decided she couldn’t let that one go either, so she is now threatening a new legal challenge of the federal Impact Assessment Act, which has just been through changes after the Supreme Court ruled that the earlier version did not pass constitutional muster. And just like Higgs’ challenge that has no new legal arguments to draw on, Smith is also citing things that are not legislative in nature as she plans to challenge the amended law.

The federal government isn’t having it, and Steven Guilbeault has called her out over this, but I’m not sure her behaviour will change too dramatically once she’s on the other side of her leadership review because, well, she needs to prove to her base that she is doing more than just listening to them, but acting on their batshit crazy desires as well, so we’re going to see more of this nonsense going forward.

Applies to the vast majority of #cdnpoli.

— Dale Smith (@journodale.bsky.social) 2024-10-04T23:00:28.266Z

Ukraine Dispatch

Ukrainian force shot down nine out of nineteen Russian drones targeting critical infrastructure overnight Thursday. Russian advances have knocked out about 80 percent of the critical infrastructure in the logistics hub of Pokrovsk, which they are trying to capture. President Zelenskyy visited the Sumy region, which borders the captured areas in Russia’s Kursk region. Reuters has a photo gallery of the all-female anti-drone mobile air defence unit known as the “Bucha witches.”

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Roundup: What the Bloc are demanding

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As part of their demands in order to support the government, the Bloc Québécois have been making enriching pensions one of their main demands, and the government has (rightfully) been pushing back, and I’m not sure that everyone understands the issue. Certainly, there are columnists who have missed the details of this, which are actually long-standing, and think that there is enough fuzziness that the government can negotiate around it. No. This has been a specific Bloc demand since the Liberals first put in the policy of enriching OAS for seniors over the age of 75, because those seniors have greater needs and many have depleted their savings. The Bloc even have a private member’s bill that they are currently debating, but naturally this bill is out of order because PMBs can’t spend money, and that’s exactly what this bill is directing them to do. So, they are very specifically demanding a royal recommendation for this bill in order for it to actually be in order, voteable, and that it can do what they want.

It’s not going to happen. It shouldn’t happen, because the whole rationale is off. But they’re going to make life uncomfortable for the government soon enough if they don’t get their way, which is why this issue has taken over the spotlight over the past week.

Here’s Tyler Meredith to explain the proposal and the financial costs, and why it’s not something the government wants to sign onto.

https://twitter.com/tylermeredith/status/1836962451264327962

Ukraine Dispatch

Russians made three strikes on Kharkiv, injuring 15. Residents of Kyiv are being told to stay indoors because of smoke from nearby fires. Ukraine has banned officials using the Telegram app because they fear that Russians can access their conversations. President Zelenskyy says that top officials have discussed and come to an agreement around the need for more domestic arms production on faster timelines.

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QP: Harvesting carbon and capital gains clips

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As the final sitting week of the spring begins, with a heat wave starting, neither the prime minister nor his deputy were present, but most of the other leaders were. Pierre Poilievre led off in French, and he worried about Bloc having concerns about the capital gains changes, and that their hoped-for amendments wouldn’t happen next week when it comes into force. Anita Anand praised the plan the government put forward for the economy, which the Conservatives don’t have. Poilievre kept needling the Bloc, claiming they were taking Quebeckers’ money and giving it to Ottawa. Jean-Yves Duclos asked Poilievre to explain why people who make half a million in capital gains should pay less tax than a nurse making $50,000 in a year. Poilievre switched to English to worry about the so-called “cover up” of the costs of the carbon levy, claiming it costs the economy $30 billion per year, and wondered what else they were hiding about their other tax hikes. Steven Guilbeault pointed out the reductions in emissions while the Conservatives want to let the planet burn. Poilievre tried the same again, insisting the carbon levy won’t change the weather or stop a single forest fire, to which Jonathan Wilkinson wondered if Poilievre was a climate denier. Poilievre turned back to the capital gains changes, and cited the “Food Professor” about it (seriously?!), and Anita Anand praised…housing starts. Come on!

Alain Therrien led for the Bloc, and he worried that the government would discredit the Hogue Commission if she didn’t come to the same conclusion as the government. Dominic LeBlanc said that he was pleased that Justice Hogue had agreed to look into this. Therrien railed that the prime minister has slept on the foreign interference file for months, and LeBlanc insisted that they have taken this seriously since the get-go.

Jagmeet Singh rose for the NDP, and he railed that progress on the Truth and Reconciliation calls to action were taking too long to be implemented. Patty Hajdu insisted that they have been working, and that she just stood with the National Chief to announce funding for a Northern Ontario hospital. Singh repeated the question in French, and got much the same response.

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Roundup: A question with the intention to intimidate

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Conservative MP Chris Warkentin has put a question on the Order Paper asking whether a number of economists have received any government contracts, and for any information about those contracts if they have been the recipient. While Stephen Gordon responds for himself below, it was also noted that all of the economists listed (who include names like Kevin Milligan, Andrew Leach, and Mike Moffatt) are all male, which I’m sure is just a coincidence and not indicative of a mentality that they think there’s no such thing as a “lady economist.”

This having been said, I think it’s important to point out that what Warkentin is doing here, on behalf of the party, is directly out of the authoritarian playbook. Number one of the seven key tactics in that playbook are to politicise independent institutions (and university academics would qualify), while number four on that list is about quashing dissent, and many of these names are economists who signed onto that open letter about the value of carbon pricing (which, to reiterate, was not defending the Liberal policy because it’s not actually carbon pricing, but a carbon levy plus regulation and subsidies). The Order Paper question is a shot across the bow that they are looking for anything to discredit these economists as partisan hacks whose expertise can be discounted for that reason. It’s about as subtle as a ham-fist, but they don’t care because they’re riding high in the polls. That doesn’t mean that we shouldn’t be alive to what they’re doing, because it absolutely matters.

Ukraine Dispatch:

A missile strike in Kharkiv has killed at least seven civilians, as the Russian assault continues. Russians have also taken control of the village of Andriivka, southwest of Bakhmut. Russian jamming has also prevented many of Ukraine’s newer glide bombs from hitting their intended targets.

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Roundup: Saskatchewan Speaker’s bombshells

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Things took a dramatic turn in the Saskatchewan legislature as the Speaker, Randy Weekes, has had enough of his own party and government. On Wednesday night, he tweeted a photo of his party membership card being cut up, with the phrase “enough is enough.” And then on the last sitting day of the session, in advance of an election this autumn (so likely his last day on the job), he stood up and read out the harassing texts messages he received, instances where government staffers accosted him outside of the Chamber, and his concerns about the Government House Leader of bringing guns into the legislature, and how he wanted to carry a hand gun.

Some of this speaks to a pattern—Weekes pointed to his predecessors who were also subject to harassing text messages or directions from the Government House Leader, and some left the job as a result. Part of this pattern is also because, frankly, the government is long in the tooth, and has become arrogant and complacent, believing themselves to be on the cusp of becoming an Alberta-esque one-party state. A lot of Scott Moe’s actions belie such a belief, particularly as they have started targeting minorities (like trans youth) for political gain with no actual policy reason for doing so. It’s just in-group identification with the increasingly far-right voices in the so-called “conservative movement” (which is frankly, no longer really conservative), especially as it bubbles up from the US, but also takes inspiration from places like Eastern Europe (and there has been a lot of cross-pollination between the American right and places like Hungary in recent years). And that the Saskatchewan Party is willing to violate parliamentary norms like this is part of that same playbook.

Naturally, Scott Moe scoffed at Weekes’ speech, calling it sour grapes because Weekes lost his nomination battle a few months ago, but it also means that Weekes had nothing to lose, which in a way makes him dangerous to someone like Moe, because he can start dropping truth-bombs with no fear of reprisal (like not having his nomination papers signed). One hopes that this will wake a few people up as to the rot within the government, but we’ll see how it plays out over the coming months in advance of the election.

Programming Note: I am going to take the full long weekend off, because we’re heading into the final stretch in the House of Commons, and I need the break. See you Tuesday.

Ukraine Dispatch:

Ukrainian artillery crews near the front lines say they are facing more Russian drone attacks than ever before. Ukrainian forces say that they have halted Russia’s advance in the town of Vovchansk, but Russia says they intend to keep pushing forward to Kharkiv. NATO’s top commander says he doesn’t believe Russia has enough troops to make a strategic breakthrough. President Volodymyr Zelenskyy visited Kharkiv, to boost morale in the region.

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Roundup: Backtracking on capital gains claims

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A number of prominent business lobby groups banded together to write a joint letter to the government slamming the changes to the capital gains inclusion rate, claiming it to be short-sighted, that it sows division, and that it will impact one in five Canadians over the next decade—with more apocalyptic language about how this will hamper economic growth. Because, remember, their ability to engage in tax arbitrage is claimed to be a public good, or something.

There was just one problem—their math was grossly wrong, and they needed to backtrack on their claims, and that really, it’s about 0.13 percent of Canadians who would pay higher taxes on their capital gains. Oopsie. Kind of takes the sting out of their apocalyptic doomsaying, and exposes them for trying to mislead people into thinking that they will be exposed.

Meanwhile, the NDP have been banging on about why the government didn’t introduce any kind of windfall tax or other wealth taxes in the budget, pointing to plans by Joe Biden to increase corporate taxes, apparently not understanding how the American political system works and how that’s unlikely to happen because of how their legislative process works. The bitter irony, of course, is that for a party that keeps aping the American Democrats in their talking points, they also have no understanding of American politics either.

Ukraine Dispatch:

Ukraine’s air force says they downed all ten of the drones Russia fired overnight, but didn’t say what happened to the two missiles launched. A Ukrainian drone damaged a Russian oil refinery a record 1500 km away from border. President Volodymyr Zelenskyy dismissed the head of the state guards after two of its members were found to be plotting his assassination. Zelenskyy also says that with more Western weapons arriving, they’ll be able to halt the Russian advance in the east. In those eastern towns, Ukrainian rescuers are evacuating the elderly and infirm as the Russians close in;

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Roundup: The First Hogue Report

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On a very busy Friday, Justice Marie-Josée Hogue released the first report of the foreign interference public inquiry, to some moderate fanfare. Much of it was broadly what was in the Johnston report, but with some more nuance, which left some of it open to degrees of interpretation, some partisans claiming it proves there was meddling, others leaning on the parts where she said that what there was wasn’t enough to amount to changing an election outcome, and there certainly wasn’t some grand effort by China to win the election for the Liberals. At most, it might have cost Kenny Chiu his seat, and there remained questions about Han Dong’s nomination, but even there, there wasn’t a lot of evidence to prove or disprove anything one way of the other.

To that end, key points, and five things from the report. It wasn’t just China, but India, Pakistan, Iran, and a few others. Some candidates in the 2019 election “appeared willing” to engage in foreign interference, with more staff members implicated, around advancing the interests of China, but there weren’t any firm conclusions about who much any foreign interference actually tipped the scales in any one riding. The government also announced that they are tabling legislation on Monday, which is likely to include the foreign agent registry, and possibly some updates to CSIS’ mandate and powers.

Justice Hogue did make a couple of comments about nominations being a possible gateway for foreign interference, but that’s something that would be hard for governments or agencies to do much to involve themselves in because of how parties operate as private clubs, by necessity. That said, as I wrote in this column a couple of weeks ago, open nominations are practically extinct in the current moment so perhaps there isn’t that much danger after all.

Ukraine Dispatch:

Debris from destroyed drones fell on Kharkiv, injuring three and starting a fire. Russia says it has pushed Ukrainians back from 547 square kilometres so far this year, as Americans delayed their crucial aid shipments.

https://twitter.com/ukraine_world/status/1786364727032971377

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Roundup: Asking about Canadian LNG like it’s a free cookie

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Once again, CTV’s Vassy Kapelos asks a visiting European leader if they’d like Canadian LNG, and spins a whole story out of the fact that they say yes, while absolutely ignoring all of the many reasons why it’s never going to happen. This has happened with at least three leaders now, the latest being the president of Poland, who was visiting Canada last week (the taped interview aired over the weekend), and predictably, the story is making rounds with people insisting that Trudeau is wrong to say there’s no business case for it.

To wit: There is no ready supply of natural gas to be liquified on the East Coast, because they get it shipped from the north-eastern US. Blaine Higgs’ ambitions aside, nobody wants to be fracking in New Brunswick (not the First Nations, not the people who live in the region), and that would mean either paying even more to import American gas to liquefy, or build a pipeline from Alberta (and just as a reminder, Energy East was killed by the proponent because they didn’t have enough contracts to fill it and Keystone XL, and the latter was the surer bet at the time), and it costs money to ship gas across the country in a pipeline like that, which would increase the selling price. Then they would have to build a new export terminal to liquefy said gas, (there is one existing import terminal that could theoretically be converted), but all of this takes years, billions of dollars, and would need guaranteed operations for about 45 years to pay off, which is going to put them past the 2050 Net Zero date for a rapidly decarbonizing Europe to still want the LNG—which would be at a higher price than they can get it from Algeria or the Persian Gulf. That’s why there is no business case. There have been proposals to build terminals on the east coast before, and nobody in Europe wanted to sign a contract to make it a worthwhile investment to pursue. Hell, there are plenty of fully permitted projects on the west coast not moving ahead because nobody wants to sign contracts for the product.

But Kapelos and the CTV team keep ignoring all of these issues when they ask this question, which as one reply on Twitter stated, is like asking someone if they want a free cookie. The most the story says about the feasibility of east coast LNG is “There has been political debate for years around whether Canada could or should plan to export to European countries, as well.” That’s it. Seriously? This is malpractice at this point, and no, this is not because she or anyone is “in the pocket of Poilievre,” or anyone. It’s just lazy journalism, plain and simple. It’s not serving anyone, and frankly, is distracting from the actual issues.

Ukraine Dispatch:

Russian drones struck a hotel in Mykolaiv on the Black Sea, severely damaging it and local energy infrastructure, but fortunately there were no casualties. Another Russian oil refinery has suspended operations after a Ukrainian drone attack. While Ukraine waits on the arrival of more American aid, their forces have had to fall back from three more villages northwest of Avdiivka.

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