Roundup: Incoherent housing plans

We are now on or about day fifty-eight of Russia’s invasion of Ukraine, and Russia has declared victory when it comes to their siege of the strategic city of Mariupol, and has ordered its troops not to storm the last pocket of resistance there. But hey, they’ve “liberated” the city by shelling it to rubble, so good job there. It is estimated that some 2000 Ukrainian troops remain on site, spread out in a network of tunnels and bunkers, along with several thousand civilians. Of course, this also means that Russian forces are likely going to simply try and wait out those remaining troops and civilians as they run out of food and supplies, and trap them inside.

Closer to home, Pierre Poilievre has been unveiling more of his housing platform, but…it’s pretty incoherent, in a lot of ways. There isn’t that much financial leverage that the federal government can wield when it comes to ending NIMBYism and seven decades of market incentives for single-family homes that are unsustainable and which only continue to exacerbate the affordability crisis (not to mention the climate crisis). Oh, and Poilievre is defending his own rental property portfolio, citing that he’s providing affordable rental accommodations to two “deserving families.”

The last point on that list is pretty critical—it would undermine central bank independence, and one imagines could actually create a deflationary spiral in the right circumstances that would create a depression, which is precisely what they were avoiding when they engaged in quantitative easing during the pandemic recession. Jennifer Robson has even more concerns about the incoherence of the plan in this thread. Meanwhile, I would also recommend checking out this thread by Mike Moffatt about just how complex the drivers of the housing situation in Ontario is. It’s not just one thing—it’s a lot of moving parts that got us to where we are now.

https://twitter.com/MikePMoffatt/status/1517214855572320256

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Roundup: Higher inflation than expected

It is now day fifty-seven (or so) of Russia’s invasion of Ukraine, and hope is waning for the remaining defenders of Mariupol, and the civilians still sheltering there. As the fighting intensifies in the eastern part of the country, there are also concerns that it will devolve into a war of attrition, which Russia has historically been more able to withstand. We have also learned more about what happened when Russian troops occupied Chernobyl, where staff were working at gunpoint, and sleeping three hours a night in order to safeguard the site and ensure that Russians didn’t tamper with any of the equipment there.

Closer to home, the inflation numbers were released yesterday, and they were much higher than expected, as conflict inflation brought on by the aforementioned invasion of Ukraine is hitting. And of course, most media outlets were useless in explaining the causes of it, while the parties were equally useless in their own reactions. The government keeps focusing on their talking points about things like child care and dental care, and the fact that they indexed benefits, rather than actually explaining the drivers. The Conservatives are railing about “printing money” (which, to be clear, nobody is actually doing) and insisting that the government should declare a GST holiday, which would a) do nothing for grocery prices as most groceries are GST-exempt; and b) would have a stimulative effect and just fuel even more inflation, especially as people would be likely to use said GST holiday to buy big-ticket items. And the NDP, predictably, chalk this up to greed and want higher wealth taxes, which again, do very little about the drivers of inflation.

And then there’s the Bank of Canada, who will be forced to respond with higher rate hikes, but the question becomes whether they’ll keep the increases more gradual—another 50 basis points at the next meeting in June—of if they’ll go even higher as a way of demonstrating that they are really taking this seriously and that the system of inflation control that they’ve been responsible for since the 1990s will prevail. It doesn’t directly address the drives, but it could be that the signals are more important than the actual policy at this point, because the bigger worry is the expectation that inflation will continue, which will turn it into a self-fulfilling prophecy—something they are very, very keen to avoid.

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Roundup: Insufficient consequences for an abuse of power

We are now on or about day thirty-six of Russia’s invasion of Ukraine, and the promise that they were pulling back from Kyiv and other places to give peace talks room to breathe were, well, not true. But nobody actually believed Russia in the first place, so nobody is exactly shocked here. Maclean’s features photos from Ukraine from Canadian photographer Philip Cheung on the ground there.

Closer to home, former Chief of Defence Staff Jonathan Vance pleaded guilty to obstruction of justice charges, and admitted to all the various things that he flatly denied previously. But the galling part in all of this is that got off on a conditional sentence that included community service, rather than face a criminal record. And even more appalling was the fact that his lawyer was trying to argue that Vance was going to suffer enough because his reputation had been stained enough that he wasn’t going to be able to cash in on the promises of future defence spending, whether that’s with some kind of government relations gig, or consultancy.

The bigger picture in all of this is not just that there is a highly sexualized culture in the military that this is a mere hint of, it’s that there is an abuse of power crisis within the military that the lack of meaningful consequences here simply emboldens. This obstruction of justice charge, and the admission of it all, is a demonstration of the abuse of power that Vance was trying to wield, and got caught doing. That he gets to avoid the serious consequences of this abuse, and that the notion that he can’t cash in is punishment enough, is a sign that this is a rot that runs deep and we need to be serious about this problem and acknowledging that it exists before we can get to work on tackling it as part of the culture change that the Canadian Forces desperately needs to undergo.

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Roundup: Accountability for transfers is not micro-management

We are now in day thirty-one of Russia’s invasion of Ukraine, and things are going badly enough for Russia that the Ukrainians are starting to counter-attack, not only pushing Russian forces further away from Kyiv, but also other areas, which has the possibility of making Russia pay a high enough price that they could be willing to accept some kind of negotiated settlement and withdraw. Maybe. We’ll see, but it’s a good sign nevertheless that Ukraine is able to take these measures. Elsewhere, it sounds like about 300 people were killed when the Russians bombed the theatre in Mariupol, and the city is digging mass graves, while some 100,000 people remain trapped there as the Russians turn the city to rubble.

Closer to home, the federal government announced a one-time special transfer of $2 billion to provinces to help them with their surgical backlogs as a result of COVID, but they want some conditions of a sort, and cited five areas of focus for upcoming healthcare talks: backlogs and recruitment and retention of health-care workers; access to primary care; long-term care and home care; mental health and addictions; and digital health and virtual care. And some provinces, predictably, are balking at this because they think this is federal “micromanagement” of healthcare when it’s nothing of the sort. They simply need assurances that provinces are going to spend this where they say they’re going to, because we just saw Doug Ford put some $5.5 billion in federal pandemic aid onto his bottom line, and giving out rebates for licences plate stickers in a blatant exercise in populist vote-buying rather than using that money where it was intended—the healthcare system.

https://twitter.com/journo_dale/status/1507478370300628996

More to the point, provinces are insisting that they are unanimous that hey want unconditional health transfers that will bring the federal share of health spending up to 35 percent, but that’s actually a trap. They are deliberately not mentioning that in 1977, provinces agreed to forego certain health transfers in exchange for tax points, which are more flexible, and that increasing to 35 percent will really be a stealth increase to something like 60 percent, because they’re deliberately pretending that they don’t have those tax points. On top of that, provinces were getting higher health transfers for over a decade—remember when the escalator was six percent per year, and what was health spending increasing at? Somewhere around 2.2 percent, meaning that they spent that money on other things. They should have used it to transform their healthcare systems, but they chose not to, and now they cry poor and want the federal government to bail them out from problems they created, and are blaming the federal government for. It’s a slick little game that doesn’t get called out because the vast majority of the media just credulously repeats their demands without pointing to the tax points, or the fact that they spent their higher transfers elsewhere, or that Doug Ford sat on that pandemic spending, as other provinces did to balance their budgets (Alberta and New Brunswick to name a couple). So no, they do not need these transfers to be unconditional, and the federal government would be foolish if they acceded to that kind of demand.

https://twitter.com/EmmMacfarlane/status/1507418761912983561

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Roundup: Displacing and dispersing Ukrainians into Russia?

We are now on day thirty of Russia’s invasion of Ukraine, and while Kyiv remains safe, there are reports that as many as 400,000 Ukrainians have been forcibly relocated into Russia, where they are being dispersed to economically depressed regions in that country. The Russians are claiming that these relocations are voluntary, but Ukrainian officials worry they may be used as hostages. Meanwhile, president Volodymyr Zelenskyy addressed the NATO summit happening in Brussels and asked for aircraft and tanks, but was mostly only promised more of the same kinds of aid that they have been receiving to date.

Closer to home, there are now two more prospective entrants into the Conservative leadership race—former floor-crosser-turned-deputy leader Leona Alleslev, who has launched a website and who has volunteers getting the necessary signatures required to launch a bid; as well, a failed candidate named Joel Etienne from York Centre, who has also put up a website and is collecting signatures. One of the other leadership candidates, Marc Dalton, seems to have enough self-awareness that he knows he’s a long-shot candidate, but seems to be pinning his hopes on the vagaries of preferential ballots as his salvation. Oh, and he still hasn’t lined up his entrance fee yet, so that’s probably a sign about his chances.

As these entrants keep lining up, Candice Bergen is warning them not to call those in the race that they disagree with as “not Conservative” because that’s “identity politics,” and they don’t want to wedge, divide and polarize, because that’s what they accuse the Liberals of doing—which is kind of hilarious when you think about it. They’ve explicitly framed this contest as one for the “soul of the party,” and the contest is going to entirely be about whether they find a leader who can appeal to enough of the moderate Canadians in the suburbs who can deliver them an election victory, or whether they retrench into their “values” and electoral consequences be damned because they’re acting like Conservatives and not Liberals. And when you set up the contest as one about what constitutes those “values,” with a purity test or two thrown up around them, who is and is not a Conservative is going to be a bigger sticking point in this race the longer it goes on.

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Roundup: One month into Russia’s invasion

It’s now day twenty-nine of Russia’s invasion of Ukraine, or one month since it began. To that end, president Volodymyr Zelenskyy is calling on people to gather in public around the world to show support for Ukraine to mark the occasion. NATO is estimating that somewhere between 7000 and 15,000 Russian troops have been killed to date (as many as 30,000 to 40,000 if you count killed or wounded), and to put that in comparison, Russia lost 15,000 fighting in Afghanistan over the course of a decade. And on that note, here’s a look at what went wrong for Russia (beyond Ukraine’s resilience).

https://twitter.com/StephanieCarvin/status/1506790177364131846

Closer to home, many more questions are being asked of some of the plans outlined in the Liberal-NDP supply and confidence agreement, especially around the areas of pharmacare and dental care. NDP MPs like Don Davies are already talking tough, insisting there should be a “phased in” approach, but the timelines for the Canadian Drug Agency to do their work are pretty much what was already being planned through the Hoskins Report, but the biggest obstacle remains the premiers. So far, only PEI has signed on, and I keep saying this, but the NDP have not been publicly haranguing their provincial counterparts in BC to sign onto the system, so that can’t be a good sign. Likewise with dental care, the expectation seems to be some kind of national insurance plan which builds on the system used for First Nations and Inuit people, who call under federal responsibility, but there are a lot of complicating factors to extending that approach, as Jennifer Robson points out in this thread. Right now, it’s a lot of handwaving and wishful thinking, which isn’t helpful.

And then there are the premiers, who are none too happy with these proposals as they consider them to be intrusions in areas of provincial jurisdiction (which they might be if done incorrectly). Of course, they would rather the federal government just turn over more cash to them with no strings attached, which should never happen considering how many provinces just took the federal pandemic money and applied it to their bottom lines, and then praised how low their deficits were this fiscal year (while their hospitals remain overloaded, and in plenty of cases, their health care workers are leaving in droves from burnout and low wages).

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Roundup: A confidence agreement in the works?

We are now on day twenty-seven of Russia’s invasion of Ukraine, and Ukraine has refused to surrender the strategic port city of Mariupol to the Russians. As well, Russian shelling destroyed a shopping centre in Kyiv killing eight, which is escalating the attacks facing the capital. Also of note was a possible leak of Russian casualty figures, citing 9,861 killed and 16,153 injured over the course of the invasion, which contradicts Russian propaganda figures to date, and which could turn up the pressure on Putin by the Russian people.

Back in Canada, news started spreading over the evening that the Liberals and NPD had reached a tentative agreement to a supply-and-confidence agreement that would see the NDP agree to support the next four Liberal budgets so that they can stay in power until 2025 in relative stability, and in return, the Liberals will make “real progress” on national pharmacare and dental care. I’m a little confused why those would be the conditions, given that they’re wholly dependent upon the provincial governments signing on, and while the current federal government put a framework in place for national pharmacare, thus far only PEI has signed on (and I haven’t seen the NDP publicly haranguing John Horgan to sign on either). And while people ask why they can’t do what they did with early learning and child care, part of that answer is that the reason why provincial governments are gun-shy about these programmes is they are concerned that if they set them up, a future federal government will cut funding and leave them holding the bag for very expensive programmes. While Quebec has shown that child care will pay for itself once more women are in the workforce and paying taxes, I’m not sure the calculation is quite the same for the other two, or will at least take much longer for the fiscal benefits to work their way through the system. So could the government come to the table with a lot more money—maybe. But that doesn’t eliminate the trepidation that once 2025 hits that their fears won’t come true. There are also reports that the deal could include more for housing, reconciliation, and some form of wealth taxes, so we’ll see what gets announced this morning.

The Conservatives, meanwhile, are touting this as evidence of a “coalition” and that it’s “backdoor socialism,” which doesn’t make sense. It’s not a coalition because there are no Cabinet seats for the NDP, and these kinds of confidence agreements are easily broken (see: British Columbia and the deal with the Greens, which Horgan’s NDP tore up when the polls looked good enough to get a majority, which he did). It’s not socialism because they’re not going around nationalising the means of production. They’re still going to wail and gnash their teeth, and pretend that this is somehow illegitimate when it’s one hundred percent within how hung parliaments work under our system, but I’m not going to say it will last the full four years. It will however alter the narrative of the Conservatives’ leadership contest, and could be read either as Trudeau giving himself enough runway to make a few more accomplishments before turning it over to a successor, or for him to try and build the case for re-election. Either way, it’s fairly unprecedented at the federal level in this country, and could make for interesting days ahead.

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Roundup: Zelenskyy speaks with his inspiration, Trudeau

We are now in day eight of Russia’s invasion of Ukraine, and attacks against hospitals, schools and critical infrastructure continue. Russian casualties are mounting, but Putin shows no sign of stopping, even as we are well into war crimes territory (and Ukraine is also making announcements of policy changes that would also be war crimes, so this is not solely a Russia problem). When it comes to sanctions, Germany has seized the yacht of one of Russia’s oligarchs, and one can expect more seizures to come in the days ahead. Canada has also joined 32 other countries in denouncing Russia’s use of propaganda in its campaign against Ukraine.

While there was no new announcement of sanctions from Canada yesterday, there was a call between Justin Trudeau and Volodymyr Zelenskyy, who apparently thanked Canada for our efforts and stressed the need to keep expanding sanctions (which is happening, but being done in a coordinated fashion with allies). Also, interestingly, an old tweet of Zelenskyy’s was circulating yet again, where he cited Trudeau as one of his inspirations to join politics—which must really burn Trudeau’s critics, who are hailing Zelenskyy for his leadership in a crisis.

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Roundup: Using the invasion of Ukraine for crass domestic gain

We are now on day seven of the Russian invasion of Ukraine, and Kyiv still stands, in spite of the convoy of Russian vehicles headed in its direction. Russians bombed Kyiv’s main television tower, as well as a Holocaust cemetery, which really bolster’s Putin’s claim that he is trying to “de-Nazify” the country. In fact, Russia is bombing more cities and inflicting more damage, and killing more civilians, which led to a response by the International Criminal Court to indict Putin for war crimes. Oh, and to compound the humanitarian crisis, some of Ukraine’s neighbours aren’t accepting non-white refugees who were in Ukraine, which is a big problem.

Here in Canada, yet more incremental sanctions were announced, along with more aid and supplies being sent, and new measures include ships that are of Russian origin or registry being denied entry into Canadian waters. Chrystia Freeland is warning that more severe sanctions will hurt Canadians as well, which people keep forgetting is a reason why sanctions can be so tough to implement, but here we are.

The Conservatives, meanwhile, are making a number of demands which are not necessarily reasonable, such as their continued insistence that the Russian Ambassador be expelled, and the recall of our Ambassador in Moscow. Expelling ambassadors should be the absolute last case situation, because we need channels to talk, especially when the going gets tough. It was more justified with the Iranians because they were running an intimidation ring from their embassy, which does not appear to be the case with the Russians. The fundamental problem is that the Conservatives have adopted this mindset where they treat diplomacy as a cookie you get for good behaviour, which is not the point of diplomacy. That’s why we have diplomacy—to do the hard stuff, and you can’t do that if you keep kicking out opposing ambassadors every time you get in a huff about something. It’s poor practice, and is frankly a specious understanding of how the world works. Even more to the point, their continued insistence that this crisis is a good idea to push their “ethical oil” nonsense and to make the case for “drill, baby, drill,” no matter that it is a literal impossibility to meet Europe’s energy needs any time before the end of the decade, by which point we should be into rapid decarbonisation. But they have narratives that they are wedded to, no matter how crass or inappropriate, and they’re going to stick with them.

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Roundup: Emergency orders lifted before the Senate votes were cast

By late afternoon, yesterday, prime minister Justin Trudeau ended the emergency orders, at a time when the Senate had not yet voted to confirm them. This, of course, led to numerous cries from opponents that they had helped to end it (declaring victory for pushing on an open door), and accusations that Trudeau knew he would lose the Senate vote so pulled the plug beforehand. And then there were the questions about what changed between Monday and yesterday that made it okay to lift the restrictions, of which the official line is “advice from law enforcement,” but one also suspects was that they might have felt it inappropriate to lift it before it had even been brought to a vote, but conversely didn’t want to keep the orders for too much longer after that. I’m not sure. Suffice to say, it’s over, and all of the cries of “tyranny!” and “Trudeau is doing this to increase his own power!” seem pretty stupid right about now.

Speaking of the Senate, they were progressing through a second full day of speeches with no end—or vote—in sight, when the order was lifted and they simply adjourned debate. This is something of an indictment on how the Senate handled this matter in terms of their schedule. They should have recalled the Chamber as soon as the Act was invoked and the emergency orders declared, so that they could receive them on the same day as the House of Commons and debate them concurrently, as it’s not a piece of legislation that has to pass one Chamber before the other, but they didn’t, and their planned Friday recall was cancelled by the police action, further delaying the debate. And then some of the same problems that the House of Commons saw presented themselves in the Senate as well—that absolutely everyone wanted to have their own speech on the record, no matter that having something new to say diminished with each passing speech, but this is what the “new” Senate is becoming—a debating society rather than a deliberative legislative body. And while sure, there were some good speeches, there were also some doozies that repeated the same falsehoods and info ops that the occupation organizers were counting on, so well done everyone.

Meanwhile, Matt Gurney calls for more information as to what constituted the continued use of powers in advance of their being lifted. Andrew Coyne puts the nine days of the emergency orders into perspective versus how it has been portrayed by bad faith actors across social media and certain political parties.

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