Trudeau Economic Highlights
Busy time in Ottawa
Happy new year! Welcome to 2025!
With only 7 days into the new year, Ottawa has been busy plotting the demise of Trudeau.
Trudeau announced he is stepping down as the Liberal leader, while staying on as Prime Minister... for now
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To most Canadians, this isn't a surprise.
Trudeau's approval was down to 22%. An all time low.
Source: https://angusreid.org/liberals-prime-minister-trudeau-resign-election-2025-poilievre-singh/
Before Stephen Harper lost the election to Trudeau, Harper had an approval rating of 32%.
Trudeau, how low can you go?
Trudeau must be thinking he is doing the limbo dance and winning it!
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All jokes aside, it's been a tough 10 years for most Canadians.
Here are the economic highlights of our dear fearless leader:
#1. Almost 1 Trillion dollars of investments have left Canada
The increase of money leaving Canada dwarfs the growth in money flowing into Canada—a trend that has become particularly evident since 2014. To put some numbers on it, investment flowing into Canada has increased at a rate of 6.9 percent per year since 2014 while money flowing out (“outbound” FDI) has increased at a rate of 11.1 percent.
#2. Doubled the national debt to 1.3 Trillion
The federal government repeatedly promised to keep the 2023-24 deficit within its own fiscal guardrail “at or below $40.1 billion.” However, today’s Fall Economic Statement shows the 2023-24 deficit was $61.9 billion. This year’s deficit is projected to be $48.3 billion.
The debt will total almost $1.3 trillion this year. When Trudeau first became prime minister, the debt was $616 billion. That means the Trudeau government is responsible for doubling the national debt.
Source: https://www.taxpayer.com/newsroom/trudeau-blows-through-his-deficit-guardrail
#3. Avg. home price went from $456,186 (2015) to 694,411 (2024)
FIRST READING: How much Canada has declined in 10 years of Trudeau (and a few ways it hasn't)
#4. 16.3% decline in business investment per worker (2014-2022)
Business investment (inflation-adjusted), excluding residential construction, declined by 16.3 percent between 2014 and 2022, or by 1.9 percent on average annually.
One way to think about the consequences of declining business investment is to compare investment per worker between Canada and the U.S. […] between 2014 and 2021, business investment per worker (inflation-adjusted, excluding residential construction) decreased by $3,676 (to $14,687) in Canada compared to growth of $3,418 (to $26,751) in the U.S. Put differently, in 2014, Canadian businesses invested 79 cents per worker for every dollar invested in the United States. By 2021, that level of investment had declined to just 55 cents per worker.
#5. Annual per-person economic growth at only 0.3%
On his way into power, Trudeau argued that the slow growth of the Harper era was largely the result of insufficient government spending, and that looser fiscal policy with more spending and larger deficits could help spur growth in Canada (and indeed around the world). This approach didn’t move the needle on growth. In fact, under Prime Minister Trudeau, annual per-person economic growth has averaged just 0.3 per cent compared to 0.5 per cent under Harper.
Source: https://www.fraserinstitute.org/commentary/canadas-economic-stagnation-big-problem-canadians
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I’d like to close today’s newsletter with a previously published newsletter issue - Trudeau's magic tricks (click here to read):
Politician like Trudeau likes to perform magic.
Most adults understand that magic is essentially an illusion.
The magician is skilled to keep the audience's attention on what they want you to see.
With a highly trained skill of misdirection, they shuffle or move objects around and make something disappear.
Trudeau is the magician today.
He knows by changing the amortization, it will make housing appear more "affordable".
He sells to the audience (the Canadian middle class) this great act of illusion.
Look! Now you can buy a house for less payment!
Abracadabra!
The curtain is closing, the show is ending.
Take a bow, Mr. Trudeau.
If only the tickets are refundable.
If you like my work, I invite you to share it with others.
Happy New Year!
Eric Chang
Calgary, Alberta
January 7, 2025
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