We must acknowledge this new, unpleasant reality
Jake Fuss and Tegan Hill are economists at the Fraser Institute.
In the latest example of a recurring theme, federal Finance Minister Chrystia Freeland, speaking during a recent event in Quebec City, touted Canada’s economic growth, the “strongest” in the G7, and said she’s “never been more optimistic about the future.” In other words, the economy is booming.
It’s hard to overstate the misleading nature of this narrative, which the Trudeau government has been repeating for months. In reality, Canada’s economy has largely stagnated – that is, economic growth has declined dramatically – and all signs point to this negative trend continuing for the foreseeable future.
Since taking office, the Trudeau government’s plan to grow the economy has largely focused on two things – expanding the population and increasing the role of government.
Canada’s population grew by 2.7 per cent from January, 2022, to January, 2023, which is the highest rate since 1957 and the postwar baby boom. And federal per-person (inflation-adjusted) program spending is projected to grow from $9,038 in 2014 to $11,476 in 2023, an increase of 27 per cent, with the Trudeau government on track to record the six highest years of per-person spending in Canadian history.
