Dear John,

I hope you are well and navigating these uncertain times with the help of family, friends and colleagues.

The onset of the COVID-19 crisis and resulting economic downturn has resulted in a rapid, massive expansion of government spending and borrowing, which has forced us to refocus the work of the Institute. Given the government’s actions, Canadians more so than ever need analysis that the Institute provides.

Our commentaries are receiving widespread interest

In the past four weeks, the Institute has produced over 30 commentaries on the government’s policy responses to the economic downturn caused by COVID-19. Our commentaries are receiving widespread interest with many of them having appeared in mainstream media outlets reaching millions of Canadians. While I can’t profile all of our important commentaries in this email, I encourage you to check them out here.

Our numbers have spiked

Our web numbers are also up in the first three months of 2020 as Canadians look to us for analysis of these recent major government decisions. Our engagement on social media is higher than ever, and people are signing up to our email list in record numbers!

Federal government has fuelled uncertainty with its policies

While we supported the federal government’s first announcement of its aid package (because it was largely focused on income-stabilization), we have not been slow in pointing out the danger of the government’s subsequent changes of course. In a commentary published in the Financial Post, we warned that the introduction and abrupt modification of several new, large-scale programs - including reneging on a promise to aid hard-hit sectors such as energy - have been fueling uncertainty that will impede economic recovery.

No, Ministers, your government was not fiscally prudent

The Prime Minister and the Federal Finance Minister have been patting themselves on the back for their fiscal prudence over the past five years, which they argue has placed Canada in a strong position to weather the recession.

But our commentary series showed that had the federal government displayed the fiscal discipline of its predecessors, the country’s rainy-day fund could have been $100 billion bigger! This means the government could have implemented almost all of its recent direct spending aid package, currently valued at approximately $108 billion, and the overall debt level of the country would hardly have changed. Instead, our federal debt is ballooning.

Our series and commentary reached millions of Canadians through their publication in 70 newspapers across the country and wide circulation online.

Liberals tried to give themselves unprecedented powers

Can you believe that the federal government tried to give itself sweeping powers - including the power to unilaterally spend, borrow and change taxes without Parliamentary approval for nearly two years?!

We pushed back hard, calling their tactics “An affront to democracy” in a commentary that was widely distributed online.

While we were successful in raising the alarm (resulting in the original legislation being revised to remove the ability to change taxes unilaterally), the opposition parties either supported or acquiesced in granting the Finance Minister the power to unilaterally spend and borrow without parliamentary approval until September 2020. This is a very worrying development which we will be monitoring closely.

Institute book shortlisted for Best Public Policy Book

Now some good news! I am delighted to share that the Institute’s book, Wealth of First Nations, authored by Senior Fellow Tom Flanagan, has been shortlisted for the 2019/20 Donner Canadian Foundation Prize for Best Public Policy Book by a Canadian. The panel of judges called the book, “a potentially ground-breaking contribution from both a statistical and policy perspective”. The winning book will be announced at an event in November.

The finalists were profiled in a recent Globe and Mail article.

Looking forward

While it is nearly impossible to predict how the economic impact of COVID-19 will play out, estimates of the federal deficit are reaching upwards of $200 billion for this year. There is little doubt that the response to COVID-19 will likely have consequences for years.

The voices encouraging governments to retain their expanded economic control will undoubtedly be far more numerous than the voices that encourage them to relinquish it, and enhance economic freedom.

That is why the Institute is and will continue to be more important than ever.

John, thank you for reading my update and for being a great supporter of the Fraser Institute.

We know times are difficult right now. Thankfully the Institute has prudently managed its finances, and we’re confident we can make it through this difficult period. Any support you can provide to the Institute at this time will help ensure that we come out of this stronger than ever. If you can afford to do so, please consider making a donation today.

If now is not the right time, we understand. You remain a great champion of the Institute and I look forward to updating you on our work.    

Stay healthy!

Best,

Niels Veldhuis | President
The Fraser Institute
1770 Burrard Street, 4th Floor, Vancouver, BC  V6J 3G7