Dear John,
Increasing taxes.
Skyrocketing government debt.
Expanding regulations, soaring inflation, and rising interest rates.
You may think I’m describing Canada today.
But I’m actually describing Pierre Trudeau’s tenure as prime minister in the 1970s and 80s, which eventually culminated in a near crisis.
Unfortunately for us in the 2020s, Justin Trudeau is repeating his father’s mistakes.
For starters, both Trudeaus engage in deficit-financed spending.
Pierre Trudeau nearly doubled per-person spending between 1967 and 1984 , recording a budget deficit every year excluding a small surplus in 1969-70. Total federal debt increased by 167% during his time in office!
Similarly, Justin Trudeau has expanded the scope and role of the federal government, while also drastically increasing per-person spending to the second highest level on record – even after excluding COVID-related measures! Like his father, Justin Trudeau has recorded a deficit every year since taking office while total federal debt has increased 51% on his watch.
In both these cases, the higher spending and printing of money led to increasing rates of inflation. For Pierre Trudeau, inflation reached more than 12% by 1981. Under Justin Trudeau, inflation has surged to 8.1%, the largest year-over-year increase since… his father’s government.
The similarities, sadly, don’t end there.
Both Trudeaus introduced changes that hamper Canada’s investment climate and competitiveness.
In 1972, Pierre Trudeau introduced a tax on capital gains, which are found to be among the most economically damaging taxes. Similarly, Justin Trudeau raised the top marginal income tax rate on entrepreneurs, professionals and business owners, with more economically damaging tax hikes on the horizon.
And both Trudeaus made a concerted effort to curtail the western-based oil and gas sector, heightening regional tensions.
Pierre Trudeau introduced the National Energy Program, which taxed more profits from the sector, creating animosity and distrust of Ottawa, particularly in Alberta.
Justin Trudeau introduced a national carbon tax, a cap on greenhouse gas emissions that only applies to the oil and gas sector, and other regulations that further constrain energy development. These policies have sparked significant animosity in the West, to the point that a “Fair Deal Panel” was appointed to review Alberta’s role in the federation!
The last decade or so of Pierre Trudeau’s reign as prime minister was defined by high inflation, slower real economic growth and heightened regional tensions.
Today, Justin Trudeau’s similar policies are producing the same results.
John, all of the above facts and numbers are found in recent Fraser Institute studies.
That’s what we do here – give Canadians the facts they need to hold their governments accountable!
We of course don’t accept government funding to conduct this research, we rely entirely on supporters like you. If you are able to, I’d like to ask you to make a donation in support of our work today. [[link removed][campaignid]]
Thank you for your continued support,
Niels Veldhuis
President
The Fraser Institute
STAY UP TO DATE
SUPPORT THE FRASER INSTITUTE
The Fraser Institute has been ranked the #1 think tank in Canada, and the 14th best think tank out of more than 8,200 around the world! We keep Canadians – and decision-makers! – informed.
But we are only as strong as our supporters. We do not accept government grants or payments for research - we depend on individuals like you to continue our good work! We are a charity - your donation entitles you to a generous tax credit at tax time!
Contact Us [[link removed]] Privacy Policy [[link removed]] Unsubscribe [link removed] The Fraser Institute's mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. Email is one of the best tools we have to accomplish these goals. If you no longer wish to receive e-mail updates from us, click here to unsubscribe [link removed].
Fraser Institute 4th Floor, 1770 Burrard Street Vancouver, BC V6J 3G7
