And so, the government tabled their Fall Economic Statement, and lo, it was relatively restrained. There was very little spending, most of it very targeted, nothing about booking particular promised but not yet delivered spending programmes (such as the disability benefit), and most of that spending was geared toward either housing, or some targeted tax breaks. Critics will point out that what is offered for housing is very little given the scale of the crisis, but we also have to remember that the federal government needs to be restrained in its spending so as not to juice growth too much and keep inflation high—several provinces are already doing that, which makes the Bank of Canada’s job much harder, and Freeland seems to be making the effort to do her part not to make things worse.
With this in mind, here are some of the stories that emerged:
- A overall look, including the deficit situation.
- Further promising changes to competition law.
- Using part of the growth fund to guarantee carbon prices for major emitters (as insurance for investments against future government actions).
- There’s a new voluntary “Mortgage Charter,” and measures to help CHMC revive projects that may have been shelved because of interest rates.
- Debt-servicing charges are increasing mostly because of how much they needed to take on during the pandemic.
- Enriching the payroll tax credit for media organizations.
- The Canadian Press has a list of highlights and five key affordability measures in the update.
Meanwhile, here is some added reaction:
From the Federal fiscal update: debt/GDP compared to Budget forecast from February. Lower in the short-term, and modestly higher by 2026 (tenths of a point). A *much* better update that I anticipated.
Full details: https://t.co/ZWk9MQLzf0 #cdnecon #cdnpoli pic.twitter.com/xOwLTy5RKH
— Trevor Tombe (@trevortombe) November 21, 2023
“The direction on the future of the Competition Act in the Fall Economic Statement is a welcome sign that the government recognizes the role of competition in making life more affordable for Canadians." https://t.co/czSb172PYH
— Keldon Bester (@KeldonB) November 21, 2023
Positive moves on competition policy, open banking and employee ownership in the FES this year. Three policies with the potential to shift the structure of the Canadian economy going forward. https://t.co/xk0gZcXVxU
— Keldon Bester (@KeldonB) November 21, 2023
A+: real estate loophole closure (or what I call the Gadhafi amendment): the requirement to identify unrepresented parties and third parties in real estate transactions. I wrote about this issue earlier this year: https://t.co/JSb9bSlvLo
— JMDavis (@JessMarinDavis) November 21, 2023
B: They're going to make efforts to address third party money launderers by amending the money laundering offence. I need to see the details here before I'm willing to give it an A. And you don't get an A+ without a better plan for enforcement.
— JMDavis (@JessMarinDavis) November 21, 2023
B+: CBSA is getting a trade transparency unit. This is an important aspect of combatting money laundering (particularly by professional money launderers), so this is a good first step. Questions about the implementation of course.
— JMDavis (@JessMarinDavis) November 21, 2023
Ukraine Dispatch:
Russians hit a hospital in Selydove in the east, as well as a coal mine, as well as killing one while shelling Kharkiv. More than 10,000 civilians have been killed since the start of Russia’s invasion. The Russians claim to have scuppered more Ukrainian attempts to get footholds on the eastern banks of the Dnipro river. Two Ukrainian lawmakers are under investigation for trying to bribe reconstruction officials, one of them with Bitcoin.
⚡️Ukraine unveils 'powerful drone' that can fly behind enemy lines, evade jamming.
The unmanned aerial vehicle (UAV), dubbed "Backfire," will help Ukraine "hit Russian artillery, logistics hubs, enemy storage points, and command posts."https://t.co/dhukKOx3oL
— The Kyiv Independent (@KyivIndependent) November 22, 2023