Roundup: Promising populist GST cuts

In a speech to the Canadian Club in Toronto, NDP leader Jagmeet Singh laid out a pre-election campaign pledge of removing the GST on certain “essential” items like ready-made food, diapers, home heating, and mobile phone and internet bills—all of which he would finance through an “excess profit tax” on large corporations. It is possibly the dumbest economic policy possible, but our politics are moving into an absolutely brainless phase of populism.

Removing the GST on these items will have a negligible impact, particularly for those in low-income brackets. If anything, most of those reductions will benefit higher-income households, such as the GST cut on home heating (because wealthier households have bigger houses that take more fuel), and it when it comes to apartment buildings, the cut has little impact, or for places with electric heat, how exactly do you disentangle how much of the hydro bill is heat versus other electricity usage? I know that the NDP have been pushing this policy for years now, long before Singh was leader, but has anyone thought about it for more than five seconds?

In addition, making more exceptions to the GST are hard to administer, and it will reduce the GST rebates that lower-income households rely on. And promising the “excess profits” tax is basically an arbitrary exercise in determining what they consider “excess,” and that will basically be how much they think they can soak out of these companies, who will inevitably engage in creative accounting to suddenly lower profit margins or incur paper losses to avoid paying said tax, and all of the things the NDP had hoped to spend that windfall on will blow away like ashes in the wind. This isn’t progressive policy, but the NDP are going to pursue it anyway because they think that they can get the populist win here, when it’s almost certainly going to fail.

Effin' Birds (@effinbirds.com) 2024-11-15T01:27:01.865Z

Ukraine Dispatch

A combined Russian strike hit a residential building and energy installations in Odesa, killing one on Thursday evening. As well, the Russian assault on Kupiansk in the northeast broke through the outskirts of the city, but were eventually repelled.

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Roundup: The PBO’s new NATO numbers

The PBO is at it again, and he released a report yesterday on his particular calculations about how Canada could get to our stated NATO goals of 2 percent of GDP by 2032-33, and that we would need to double defence spending to get there, and what that looks like if the government remains committed to its deficit and debt-to-GDP ratio targets. Fair enough, but there are a number of capital commitments in the works that include new submarines, and one has a pretty good bet that these costs will only increase as time goes by, for what it’s worth.

While this is all well and good, there was some particular language in the report that should raise some eyebrows, because Yves Giroux is talking about how other economic forecasts are “erroneous” and he is insisting therefore that his aren’t, which is…a choice. In his previous report on defence spending, Giroux went on a whole tangent about how the OECD figures used as the baseline weren’t correct and his numbers were, but NATO uses those OECD figures for their purposes, not the PBO’s. For the sake of an apples-to-apples comparison, you would think that he would use the same denominator as NATO does, but of course not. Giroux has a particular sense of hubris around his figures, and we all know what happened when he got them wrong with his first report on the carbon levy and then he tried to prevaricate and rationalize them away, and insisted there wouldn’t be any real changes when lo, there were some pretty significant ones.

While we’re on the topic, the 2 percent figure remains a bad one because the denominator—Canada’s GDP is much larger than many NATO members’, making that figure incredibly hard to reach, particularly as the economy grows, and the fact that any country could exceed that target if their economy crashed. Not saying we don’t need to spend more, because we do (and I would not expect the Conservatives to meet the target either as they pledge to cut significantly should they form government next), but we also need to keep some perspective.

Ukraine Dispatch

Ukrainian forces shot down 33 out of 62 drones plus one missile overnight, which killed at least four in various regions of the country, while Russia claims they downed 25 Ukrainian drones, as North Korea’s foreign minister travelled to Moscow. Last evening, a guided bombs struck a high rise in Kharkiv, killing a child. Russians claim to have taken the village of Kruhliakivka in the Kharkiv region.

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Roundup: Committee as clown performance

Because we no longer really have a Parliament, but merely a content creation studio that occasionally passes legislation, we find ourselves in yet another series of events where the institution is being weaponized for social media content. It’s not just the privilege filibuster happening in the House of Commons, though that definitely is happening (the Conservatives are taking the opportunity to get the words “corruption” and “Liberal insiders” in all of their talking points so they can create clips from them, never mind that the word “Liberal” was nowhere to be found in the Auditor General’s report on SDTC). Today, Jagmeet Singh has decided he needs another stunt for his own socials.

Singh plans to attend the Natural Resources committee meeting after Question Period, so that he can “stand up to big oil and gas,” by which he means the CEO of Cenovus Energy and the vice president of the Canadian Association of Petroleum Producers, both of whom are appearing by video conference as part of the study on the Trans Mountain Expansion. To drive home the point, party leaders don’t appear at committees (Elizabeth May occasionally accepted, because hers is a party of two, and she occasionally wants to participate in a committee meeting). Singh, however, is going tomorrow for the sole purpose of putting on a dog-and-pony show for the cameras.

This isn’t Singh’s first time doing so, mind you. He did it with the grocery CEOs, where he comically brough in a huge stack of papers, claiming they were questions from Canadians to those CEOs, but he didn’t ask a single one, but merely soliloquized for the cameras in the NDP’s designated spots. It was a pure clown performance for the sake of clips, but the NDP fell all over themselves to insist how great it was, and now Singh wants to do this again. Why now? Well, probably because he slit his own throat and immolated what little credibility he had when he walked away from his agreement with the Liberals in bad faith, and played into Pierre Poilievre’s hands, and now he wants to redeem himself and play up his precious illusions about sticking it to corporations. You can bet this is going to be another clown show that he’ll pat himself on the back over, and absolutely everyone’s time will have been wasted.

Ukraine Dispatch

Russian shelling killed one and injured five in the Kherson region, and guided bombs killed two and inured thirty in Kharkiv. Russian forces have reached the frontline city of Toretsk, and they are advancing to the centre of the town. Ukrainian forces are maintaining “sufficient pressure” on Russian troops in the Kursk region of Russia, as they hold captured territory for a third month.

https://twitter.com/defenceu/status/1843704158240821371

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Roundup: Hoping it won’t be that bad (but it will be)

Because we’re in the middle of re-litigating the carbon levy yet again ahead of the Conservatives’ planned confidence vote, some familiar patterns are emerging, some of which are from the Elder Pundits who are, yet again, playing the “It won’t be that bad!” card, when in fact, yes it will be. Case in point was John Ivison reaching out to Ken Boessenkool, former Conservative advisor, to talk about the industrial carbon price, and Boessenkool (whose post-political career involves a lot of validating the Elder Pundits’ belief that it won’t be that bad) told him that the majority of those prices are provincially regulated, so they should remain intact. Which is not an assumption I would make because we have several provinces who believe that they can reach their reduction targets without any price (which is stupid), and they want to keep attracting investment, particularly in oil and gas, so they are likely to either greatly reduce their industrial price, or kill it altogether. This will in turn trigger a race to the bottom among other provinces, so the prices become useless. This is the whole reason why a federal benchmark and backstop were created—so that provinces couldn’t do that, and why the Supreme Court validated this as a legitimate exercise of federal powers. (Incidentally, Jenni Byrne disavowed Boessenkool after that piece went to print, which pretty much validates my point).

Meanwhile, other Elder Pundits are trying to write about the alternatives the Conservatives will use instead of the carbon levy, but even there, as they assert that while the levy is the best mechanism but there are others (because remember, they want to keep insisting it won’t be that bad), but that is a misread of what the Conservatives are actually promising, which is to tear up everything the Liberals have done, and rely on magic (in part because they don’t want to do anything, excuse themselves from doing anything by insisting that we’re only two percent of emission so what we do doesn’t matter, and any action they do take will only be “aspirational.”) For what it’s worth, the NDP also believe in the magic that they can only price carbon for corporations and it won’t be passed along to consumers, or that consumers won’t have to change any behaviour because corporations are evil. And it’s really, really depressing because the actions are having a difference, we have bent our emissions curve downward, and this is going to just upend everything for the sake of authoritarian populism, while the gods damned Elder Pundits tut-tut that the carbon levy must be bad because it’s unpopular, never mind that their refusal to understand of communicate it, or to refute the lies about it, have contributed to this situation. Good job, everyone. Enjoy your summers of wildfire smoke, and your melting icecaps.

Ukraine Dispatch

Russians struck an apartment building in Kharkiv, wounding 21 civilians, as Ukraine destroyed 71 out of 80 attack drones overnight. There were also air strikes on Zaporizhzhia that injured 13 civilians. President Zelenskyy is hoping for faster action from the Americans, ahead of his visit to the White House, given that Ukrainian drone strikes have hit Russian arms depots, destroying thousands of tonnes of weaponry.

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Roundup: Bringing in the spouses?

The fallout from Jagmeet Singh’s confrontation with members of the Asshole Brigade who are harassing people in front of Parliament Hill has taken a couple of strange twists. In his post about the incident, Singh said that “That’s the country that Pierre Poilievre wants,” which of course sent the Conservatives into the usual bit of performative victimhood. Among those was Michael Cooper, who was seen hanging out with some of those members of the Asshole Brigade, and he tweeted out that he didn’t know them, that they approached him at the restaurant he was eating in…but there is video that shows him meeting with them before the restaurant, so perhaps that’s a very judicious use of the truth.

The stranger part was that Anaida Poilievre wrote a long Twitter missive to rebut the accusation and to praise Poilievre’s good character, while taking shots at Singh and Justin Trudeau. There has been a long-held convention in Canadian politics that spouses stay out of things, and they get a semblance of anonymity as a result. The fact that she has been very active in Poilievre’s campaign is a sign that she could be much more active in a future where Poilievre becomes prime minister, and that’s a bit of a problem because we don’t have “First Ladies” in this county like the Americans do, because our “First Lady” is Queen Camila. If she plays an active role, does she then become a target for other parties? Does that open up attacks for their spouses? I worry about that given the coarsening of politics as it is, and the fact that far too many people are already targeting MPs’ homes as part of protests. We don’t need them to become fair game as things continue to race to the bottom.

https://x.com/AnaPoilievre/status/1836225640938508466

Ukraine Dispatch

Russian shelling in Zaporizhzhia killed one woman and injured two others, while another attack targeted energy facilities in the central city of Kropyvnytskyi. Ukrainian drones have struck a Russian military base north of Moscow, causing an “earthquake-sized” blast. President Zelenskyy will be addressing the United Nations Security Council on Tuesday.

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Roundup: Two percent ahead of schedule

The big news yesterday was that according to August data, headline inflation returned to the Bank of Canada’s target of 2.0 percent, well ahead of schedule. It’ll bounce around for a while as the economy continues to rebalance, but it’s a sign that the Bank has essentially stuck the soft-landing. And before you repeat the Andrew Scheer line of “People are going to food banks, you call that a soft landing?” the answer is that the alternative was a recession, so yeah, this definitely beats that.

Things are still uneven, and yes, housing costs continue to drive much of the current inflation, and gasoline prices are a big reason why it fell as much as it did in August, so those will bounce around some more. Food is still running a little bit above headline, but nowhere near what it was before because supply chains have evened out, prices have stabilized from supply shocks (driven by climate change and the invasion of Ukraine), but seasonal price changes are also having an impact. (More from Trevor Tombe in this thread).

https://twitter.com/trevortombe/status/1836026950281744434

Meanwhile, I have seen zero discussion about how everything that Pierre Poilievre has claimed was causing inflation—deficit spending, the carbon levy, and so on—has all been proven false, to say nothing about the comparison between us and the US in terms of deficits and economic performance. Oh, but then they may have to actually point out that he’s lying, and they don’t want to do that. Not to mention, this is Canadian journalism, and we don’t like to actually talk to economists to understand what’s going on, we only need them to assist in both-sidesing bullshit talking points from the parties that paint a picture of doom (because there is “no such thing as a good-news economic story”). Is it any wonder Canadians have such a distorted view of the economy?

Ukraine Dispatch

Russians have once again targeted energy faculties in Sumy region, while shelling in Zaporizhzhia, has killed two people. Russians claim that they have captured the town of Ukrainsk in the eastern Donbas region.

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Roundup: First day back, and privilege is being abused

As you may have read in the QP recap, the first day back was full of general name-calling and childish behaviour. Before QP even got started, Karina Gould called Pierre Poilievre a “fraudster” for his whole “economic nuclear winter” bullshit, while Elizabeth May referred to the NDP as “No Discernible Principles,” and added “It’s fine for Jagmeet Singh to say that he doesn’t listen to Pierre Poilievre, but Pierre Poilievre’s words come out of Jagmeet Singh’s mouth.” Bloc leader Yves-François Blanchet said the situation was akin to playing chicken with four cars, and suspected that an election may wind up happening sooner than later. That said, the Bloc said they won’t vote for any confidence motion that calls for the destruction of the carbon levy, so that’s something.

The bigger issue that has been revived, however, is the demand that the opposition parties voted for regarding documents related to Sustainable Development Technologies Canada (SDTC), which the Conservatives deride as the “green slush fund” (when it was their government that set it up). The demand for these documents is an absolute abuse of parliamentary privilege, and the Auditor General doesn’t want to respond because infringes upon her independence, and the RCMP said they don’t want the documents, which was the point of why the Conservatives moved the motion to demand them in the first place. And political shenanigans from the Conservatives aside, the fact that the Bloc and the NDP couldn’t see where this was going and why this was a Very Bad Idea speaks very poorly to their own understanding of parliament, and why these kinds of privileges shouldn’t be abused (especially the fact that they have been abusing the Law Clerk and his office to do this kind of work when it’s not his job). Most concerning is the fact that using Parliament to get the RCMP to investigate where there is no evidence of criminal activity is a big flashing warning sign of authoritarian tactics of rule by law, instead of rule of law, and we absolutely do not want to go down that path in this country, and the fact that none of the opposition parties could see that this is a problem is really worrying.

Me, regarding the state of #cdnpoli:

Dale Smith (@journodale.bsky.social) 2024-09-16T21:10:06.144Z

Ukraine Dispatch

Russia claims that they re-took two villages in western Kursk district.

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Roundup: An economic “nuclear winter”

The stupid season is about to begin as MPs return to Parliament today, and lo, Pierre Poilievre primed his caucus in a meeting yesterday with a speech that decried the carbon levy as creating a “nuclear winter” for the economy. It’s absolute horseshit, because the carbon levy is not the cause of inflation or the cost-of-living challenges we’ve faced (and in fact, climate change is a major contributor to it), but this is Poilievre, and truth doesn’t matter.

I will also add that it was incredibly disappointing that in writing up the story, The Canadian Press simply both-sidesed Poilievre’s nonsense with the talking points of the two other parties, instead of phoning up an economist who could say “That’s horseshit, you should stop listening to that man.” (Yes, it was a Sunday, but a service like CP should have enough contacts that someone would answer their phones who is NOT Ian Lee). But leaving Poilievre’s comments to stand like that, completely unchallenged, is irresponsible.

Meanwhile, as the Liberals try yet another round of trying to convince the public of the merits of the carbon levy and that the rebates exist, there have been a few suggestions of what they should have done from the start, but Jennifer Robson’s are among the most salient/best to implement.

https://twitter.com/JenniferRobson8/status/1835333573366210734

Ukraine Dispatch

A married couple were killed in a Russian strike on the suburbs of Odesa, while at least 42 were injured in an air strike on an apartment building in Kharkiv. There was another prisoner exchange over the weekend, swapping 103 POWs from each side.

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Roundup: Looking for a magical, cost-free climate solution

In the wake of the NDP’s insistence that they will have a different environmental plan than the current carbon levy, they and their defenders are getting trolled pretty hard by economists, chief among them Andrew Leach, because he knows exactly what these systems entail. And the NDP’s solution involves mostly magical thinking, that somehow, they can come up with a “corporations will have to pay” scheme that won’t pass along costs to consumers, which won’t exist, whereas the current system ensures everyone pays a price (something like 41 percent of emissions are from households), and that those who are most exposed get compensation for the burden (the rebates), which encourage further reductions to maximise the compensation. And that shouldn’t be that hard, but the government has consistently been shite about communicating these facts, because they can’t communicate their way out of a we paper bag.

Ukraine Dispatch

A municipal building in Kyiv was hit by fragments of a Russian drone overnight, while two were killed in Russian shelling in the Sumy region. There was an exchange for 49 POWs. President Zelenskyy says that the incursion into Kursk has blunted an ongoing Russian advance in the country’s east. In case it isn’t obvious, here’s an explainer on why Ukraine needs permission to fire Western weapons deep into Russian territory. Intelligence suggests that Russia is now producing long-range kamikaze drones with Chinese engines and parts. Thus far, 8,060 Iranian-developed drones have been launched over the course of the war.

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Roundup: The sudden concern over redistributing asylum seekers

There is a particular strain of ugly anti-immigrant rhetoric which has largely been tamped down in this country but has started to re-emerge thanks to the permission structures being formed by the Republicans in the US, and which are being laundered into Canada by blaming the Liberals for somehow “breaking the consensus” around immigration in recent years with high arrival numbers, ignoring that the vast majority of these numbers have been asked for by provincial premiers. Nevertheless, the issue with asylum seekers (which are not economic immigrants) has disproportionately landed in Quebec’s lap because of the ease of border crossing there, and Quebec has made demands of other provinces to share the load.

Well, the federal minster, Marc Miller, has had discussions with provinces about taking more of these asylum seekers—with federal supports—but that was enough to get New Brunswick premier Blaine Higgs to start lying about it over social media. (Higgs is floundering in the polls ahead of an election and has been turning to Christian Nationalists as his strategy to stay competitive). And while Miller has called out Higgs for his fictitious alarm, it has already spread to other provinces like Alberta, Saskatchewan and Nova Scotia, with BC’s Conservative leader also weighing in (and talking out of his ass as he does about many, many files).

https://twitter.com/marcmillervm/status/1834359608481100045

Miller is an effective communicator, unlike most of his fellow Cabinet members, so he’s actually mounting a good defence, but we cannot forget that this particular xenophobic rhetoric has been creeping into the discourse here, enabled by certain premiers and by Pierre Poilievre who have been blowing this particular dog-whistle while the Elder Pundits shrug and insist that it’s not really happening because Canada is different (it is, but it’s not that different), but they see it being used effectively in the US, and in places like Hungary, and they want a piece of that action if it’ll get them the power that they crave. We’ll see if Miller can score enough blows, but I suspect that with the Elder Pundits dismissing the nature of these attacks, the effectiveness of his counters, even with receipts, will be blunted in broader public.

In case you missed it:

  • My Xtra column on the three upcoming provincial by-elections, and how conservative parties all moved further to the right in each of them.
  • My weekend column on the way the Public Accounts committee went from being the best, most non-partisan committee in Parliament to yet another sideshow.
  • My Loonie Politics Quick Take that explains Supply Days, and why they’re going to be a lot more weighty now that the NDP have reneged on their agreement.
  • My column on the tiff at TIFF over that Russian film, and why Conservatives blaming Trudeau are really telling on themselves about their own censorship ambitions.

Ukraine Dispatch

https://x.com/ZelenskyyUa/status/1834204204405039436

 

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