Dear John,

I hope you are enjoying the holiday season, and are able to safely spend time with family and loved ones despite the restrictions that are in place across much of the country.

With the year coming to a close, I want to thank you for supporting the Fraser Institute.

I know that you, much like myself and countless other Canadians, are worried that Canada is heading in the wrong direction.

But I have a tremendous amount of faith in Canadians. With an increased understanding of the impact of current government policies, Canadians will be able to hold their governments to account, and move Canada in the right direction.

Ultimately, that is what we do here at the Fraser Institute: we provide Canadians with the quality research they need to hold their governments accountable.

Here are just a few of the policy discussions we initiated this year:

Canada’s fiscal situation near crisis levels

As federal and provincial government debt reaches an estimated $2 trillion, it’s critical for Canadians to know that we’re nearing a fiscal crisis in this country.

Based on data from the International Monetary Fund (IMF), we found that Canada will accumulate more debt in 2020 than any other industrialized country. And that the size of government in Canada will reach over 57% of our economy!

But at least it will help stimulate the economy, right? Wrong.

The heightened debt-financed spending by our governments has not translated into better economic results: among the 35 advanced economies covered by the IMF report, Canada is expected to have the 11th worst contraction in the economy and the fourth-highest unemployment rate.

If Ottawa and the provinces continue running deficits at their current pace, Canada’s combined federal/provincial net debt-to-GDP ratio will rise well above 100%. That is a potentially disastrous outcome for the future of our country and future generations, who will be saddled with this debt.

Carbon taxes cause serious and harmful economic effects

Earlier this year we released a study that examined 14 high-income countries in the Organisation for Economic Cooperation and Development (OECD), including Canada, that have implemented a carbon tax.

We found that none of these countries have implemented carbon taxes based on sound design – i.e. using carbon tax revenue to reduce more economically harmful taxes like personal income taxes, removing other emission-related regulations, and ending government subsidies to alternative energy sources.

Our study concludes that poorly designed carbon taxes cause serious and harmful economic effects that increase costs, scare away investment, and deter entrepreneurship.

Thankfully, our study was covered widely by the media, including across the Sun media chain, reaching millions. And politicians like Alberta Premier Jason Kenney shared our work through social media.

These are just a few examples of our efforts this year. Every week, we release new studies and commentaries that affect wider public policy discourse.

John, as you know, we rely entirely on voluntary, charitable donations to fund our operations. We receive no government money and don’t do any contract research.

The reason we don’t accept government grants is because we’ve always believed this to be essential in order to ensure that we remain a truly non-partisan critic of government policies.

Similarly, although we were eligible to receive the federal government’s Canada Emergency Wage Subsidy to support our salary costs this year, we chose not to.

I’m sure you can appreciate that this year has been a difficult one financially for the Institute. But we’ve done what effective organisations do in such circumstances: we’ve adapted by looking for savings, cutting costs, freezing hiring, and finding new efficiencies.

So thank you again for your support: we simply would not exist without it. And in light of the situation the country faces, I think you’ll agree the Fraser Institute is needed more now, than ever.

If you can, please consider making a donation today [[link removed]] to help us start next year strongly and be even more impactful. Your donation entitles you to a tax credit!

Thank you again for your support of the Fraser Institute.

Sincerely,

Niels Veldhuis

President

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