Roundup: Spending vs inflation

 

Last week, the CD Howe Institute put out a report on the recent bout of inflation, and tried to pin it either on government spending or the Bank of Canada, and in the process ignored a whole lot of things that happened during the pandemic that were material to those price increases. Or the fact that early in the pandemic, we had deflation, and that the Bank of Canada needed to act fast to ensure that it did not continue lest it turn into a spiral that would lead to a depression, because that’s what deflation does.

Naturally, however, the moment Pierre Poilievre saw that they were pinning blame on government spending, he had to jump on that because it’s his entire central thesis for inflation, in spite of all evidence to the contrary. I report on economic data on a regular basis, and that includes the Consumer Price Index (or inflation) data every month, and the Bank of Canada’s Monetary Policy Report every quarter. I can tell you what prices increased and where, because that’s in the data every month. None of the causes had anything to do with government spending.

I also have to take some exception to the notion that government supports like CERB were driving demand. CERB was not extra spending money. It was survival money for low-income people who were out of work because of the pandemic. It staved off a wave of bankruptcies and even more demand on provincial social services or food banks (and the lack of provincial social services is the main driver behind increased food bank use, per their own reports). The “excess demand” was coming from higher-income households who had plenty of money to spend when they couldn’t go out to restaurants or go on vacations. They were not the recipients of government support, and trying to conflate the two is disingenuous, and frankly smacks of a great deal of ideological bias.

Effin' Birds (@effinbirds.com) 2025-07-19T21:10:16.169Z

Ukraine Dispatch

There has been another barrage of drones and missiles that have killed at least one person in Kyiv overnight. Here is another look at how the people in Kyiv are coping with the increased attacks.

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Roundup: Longest Ballot nuisances reach a new record

The Longest Ballot Committee crybabies have reached a high—or low—by organising some hundred candidates to be on the ballot for the Battle River—Crowfoot byelection, and they want to reach 200 when the nominations close on the 28th. It’s ridiculous and abusive, and they’re now full-on masturbating in the media insisting this is about the purity of democracy and that it’s not even about protest when this is about trying to force the government to hold a citizen’s assembly for electoral reform, because they don’t think politicians should write their own rules. Erm, except that’s what self-government means. Politicians write their own rules so that the King doesn’t. Revolutions were fought for this ability.

As for citizen’s assemblies, they are demonstrably bullshit—they’re tools used to launder accountability because there is no way to hold them accountable because you can’t vote them out for the decisions they make, and most of the time, they are easily manipulable to deliver the kinds of answers you want them to give, usually by gaming the “experts” who guide them. It’s another form of manufacturing consent, much like how referendums are easily manipulable by the government who organizes them, by shaping the questions and the conditions of those referendums to deliver results they want, at which point they manipulate the responses they get. In this case, they want this citizen’s assembly to deliver proportional representation for them (which system of PR? Who can say? But yes, that matters), because they’re crybabies who seem to think that if the person/party you vote for doesn’t automatically win, then your vote is “wasted.” There’s a technical term for that—it’s “sore loserism.” And Parliament really needs to get their shit together to close the loopholes in the rules so that the Longest Ballot organisers are stopped.

Meanwhile, the push to lower the voting age has been given a new push because the voting age is being lowered to sixteen in the UK, amidst complaints that Labour are trying to put their thumbs on the scale of the next election because their popularity is plummeting. I’m not a big fan of lowering the voting age to sixteen—teenagers make a lot of dumb choices, and just yesterday, the Supreme Court of Canada affirmed that youth frequently don’t have the moral blameworthiness to know the severity of consequences in criminal activity, but they would for voting? I can guarantee you that it would mean that voter turnout percentages would plummet even further, just like they did when the voting age was lowered to 18, and we’d be in for a whole new round of handwringing about that. If teenagers want to be politically active, they should join political parties and learn how to organise, and participate in nominations and leadership contests (which is another reason why we need to reinvigorate grassroots party democracy). I’m just not convinced that lowering the voting age to 16 is going to solve any problems.

Effin' Birds (@effinbirds.com) 2025-07-18T22:56:07.793Z

Ukraine Dispatch

A mass Russian drone attack overnight has killed at least one person when they struck apartment buildings. Russian forces claim to have taken control of three villages along different parts of the front lines. Ukraine’s top commander says that their forces are holding firm outside of the key city of Pokrovsk.

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Roundup: A shambolic summit with First Nations

Prime minister Mark Carney had his “summit” with First Nations leaders yesterday at the Canadian Museum of History, and it was a shambolic affair. Itineraries changed constantly, and the media were kicked out after Carney’s initial speech, before the AFN national chief could give her own speech, which she made a point of referencing. Leaders were promised time to engage with Carney and his ministers, and were instead simply told to talk amongst themselves. Carney did promise that this was “just the beginning,” and that there would be more focused regional consultations in the near future, but the whole thing didn’t really reassure a lot of those assembled chiefs (who were all Indian Act chiefs and not the hereditary chiefs who are in some cases the title holders). There was indeed a sense of frustration, and some chiefs walked out because of it.

Some of those chiefs from Alberta held a separate press conference with the assistance of Senator Prosper, and they noted that there was no proper consultation process on the meeting itself, that the attendees were hand-picked, and that this was largely political theatre to manufacture consent. Much of their comments focused on the fact that the treaties are not just box-ticking exercises, that they did not cede or surrender their lands, and that they have rights that must be respected—and more to the point, that in failing to live up to these obligations, the government is doing damage to the Honour of the Crown.

Afterward, Indigenous Services minister Mandy Gull-Masty tried to assure everyone that “national interest” included Indigenous people, and that projects can’t go ahead without Indigenous buy-in, but at the same time said that they can’t really discuss any specifics because they have to wait for the Major Projects Office to be stood-up, which they are hoping to do by Labour Day, and only then, when there are actual potential projects in the window could they properly engage with the rights-holders. But we are getting back into the “just trust us” territory, which traditionally has not gone very well for Indigenous people in this country.

Ukraine Dispatch

Here’s a look at how drone warfare is changing the front lines of the conflict. Russia and Ukraine exchanged more bodies of war dead.

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Roundup: Protections for the steel sector

Mark Carney was in Hamilton yesterday to announce plans to help the steel industry given the state of the Trump tariffs, which largely consisted of protectionist measures to support the industry from cheap imports being dumped into our market—particularly if they are looking to use Canada to avoid the US tariffs. To that end, countries that Canada has free trade agreements with can continue exporting to Canada up to 2024 levels, after which point they are subject to 50 percent tariffs. Countries who don’t have trade deals—including China and India—are subject to the 50 percent tariff once they hit 50 percent of 2024 levels, and anything coming from China is subject to an additional 25 percent tariff, unless they are coming from the US. There is also a $10 billion loan programme for liquidity support, and more measures for EI support and retraining steelworkers. The industry is largely happy with this, but do note that some free trade countries still dump steel in our market. (Full breakdown of measures here).

Carney also said that any potential trade deal (which isn’t going to happen) could include quotas on softwood lumber as a way of resolving that long-standing issue, but remained vague and non-committal about it.

Meanwhile, Carney is telling Crown Corporations and government-funded entities to “find your own savings” of up to 15 percent, which is going to be pretty hard when most of them are already operating bare-bones. Canada Post is on the verge of bankruptcy, VIA Rail doesn’t have a lot to cut if it’s trying to recapitalise for the proposed High-Frequency/High-Speed Rail expansion, and he told CBC he would boost their funding as he’s now telling them to find savings. There are some exemptions, like the courts (which are already largely underfunded), and Parliament, but this kind of austerity is not going to be good for anyone, whether in the short or long-term, and he needs to start thinking about a course correction because this is going to further reduce capacity to do anything in this country.

Ukraine Dispatch

Russia attacked Ukraine with over 400 drones early Wednesday, and later in the day, bombed Dobropillia while shoppers were out in the early evening, killing two and injuring over 27. Trump giving Russia 50 days to come to a ceasefire just means Russia will spend the summer trying to keep wearing down Ukraine. President Zelenskyy says he wants at least half of Ukraine’s weapons to be produced domestically within the next six months.

https://twitter.com/ukraine_world/status/1945532910058054106

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Roundup: The reality of enduring tariffs

On his way into the Cabinet meeting yesterday, Mark Carney made remarks to the press that it looks like there is little chance that we’ll get any kind of trade deal that doesn’t include some kind of tariffs, and that the commercial landscape has changed globally, so his focus would continue to be on what he can control, which is building a strong Canadian economy. It’s a lot in three sentences, but it does look like he’s coming around to a more honest assessment of where we’re at. Well, at least slightly so—they’re still pursing some form of “trade and security” agreement, which is continues to be a waste of everyone’s time because there is no agreement to be had, as Trump is not a rational actor and won’t live up to any agreement he does sign, if that ever happens. But at least Carney is no longer signalling that the old status quo is just around the corner, so that’s progress.

Pierre Poilievre, meanwhile, is calling this a “unilateral concession,” and seems to be under the impression that he (or anyone else) could somehow secure a better deal with Trump, even though there is no deal to be had. Trump loves tariffs, and won’t be dissuaded, and we have to learn to live with that (because it’s going to be a long while before it sinks in that they are driving up costs for Americans, because a whole lot of them refuse to believe the truth). We need to be wide-eyed about this, and Carney needs to be more upfront as well. There is no deal to be had. They can go through the motions of negotiating but it won’t get us anywhere, and sure, we need to focus on what we can do…but that has to mean more than just putting all of our eggs in the resource extraction basket, which can’t be our only option.

Effin' Birds (@effinbirds.com) 2025-07-15T21:22:14.842Z

Ukraine Dispatch

Russian drones and missiles struck Kharkiv, Kryvyi Rih, and Kyiv, but there was no damage at the latter. It looks like under the latest missive from Trump, NATO members will buy US equipment for Ukraine from the US, but the US won’t spend any of their own money to send weapons to Ukraine even though it’s in their own interests to do so. (Well, it was until the US became an autocratic state).

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Roundup: The rules Poilievre defended are no longer good enough

Pierre Poilievre decided he needed some more media attention yesterday, so he called a press conference in Ottawa, and declared that following the public disclosure of prime minister Mark Carney’s ethics filings, that none of this was good enough, that Carney needed to cash out all of his investments instead of putting them into a blind trust, and that nothing was good enough because he’ll be constantly managing conflicts (even though the point of the ethics screen is that he isn’t managing conflicts, his chief of staff and the Clerk of the Privy Council manage the conflict so that he’s not involved). Perish the thought that this special set of rules for Carney will only serve to keep other accomplished individuals away from political life.

Of course, the whole episode is rife with hypocrisy. These are the conflict-of-interest laws that the Harper government put into place, of which Poilievre was not only a part of, but defended them, particularly when questions arose around Nigel Wright and his assets when he was Harper’s chief of staff, and Poilievre personally swore up and down at committee that these rules were amazing and that the blind trust was blind, and so on. Of course, now that it’s convenient, his tune has changed, but that didn’t stop the CBC from pulling out the footage from the archives.

Meanwhile, Poilievre also told reporters that the country needs “more people leaving than coming,” which is not even a dog-whistle at this point but a bullhorn. If this is pandering to the far-right elements of the riding he’s trying to win, well, it is likely to backfire on his attempts to continue wooing other newcomer communities, particularly the Sikh and Punjabi communities he spent so much time wooing in the leadup to the last election. Immigration numbers have already flatlined, and it’s going to cause problems down the road, sooner than later. For Poilievre to say this as the mass deportations south of the border pick up speed shows he’s not only incapable of thinking through the implications of the things he says, but he’s fine with mouthing the words of fascists, and that’s a real problem.

(Incidentally, Poilievre once again said he opposes Alberta separation but says that they have “legitimate grievances,” and repeated his same bullshit line about the Ottawa telling Alberta to “pay up and shut up.” They pay the same income tax as the rest of us, and have the same representation in Parliament).

Ukraine Dispatch

Russian drones killed two people in the Kherson region. President Zelenskyy is proposing a major government reshuffle that includes a new prime minister, while the current one is to be shuffled to defence. Trump’s “ultimatum” to Putin to reach a ceasefire in 50 days is just license for him to keep firing drones and missiles at Ukraine for another 50 days, and probably longer.

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Roundup: Money for not living up to your end of the bargain

One of the stories that has been floating around the past few days is that Toronto stands to lose up to $30 million in federal funding from the Housing Accelerator Fund because council did not approve city-wide zoning for sixplexes, which was a condition that they signed up for when they negotiated their deal for this money. And of course, this also comes with voices who claim that the federal government would be “using money as punishment” if they don’t give them all the money anyway, even though they have quite deliberately thumbed their noses at the very thing that they agreed to in order to get that money.

The established media narrative is that municipalities are *always* the victims who have no tools at their disposal.

Dale Smith (@journodale.bsky.social) 2025-07-13T17:58:54.360Z

Unfortunately, we have a history of the federal government backing down when it comes to either giving money anyway when deals are broken, or by not recovering costs when they should. For example, the federal government was clawing back health transfers from New Brunswick for not funding abortion access at a clinic that was in an underserved part of the province, but when COVID hit, they released all of the clawed back money so that they didn’t look like the bad guys in ensuring that the province was living up to its obligations (or, for that matter, proving that they were sticking to their feminist principles, and using that money as leverage for the province to back down and fund the clinic). Another example is that provinces have deliberately underfunded their emergency management systems because they have been conditioned to know that the federal government will provide assistance from the Canadian Forces, and that provinces will get that assistance for free. The federal government has the authority to recover those costs from the provinces, but they never do because it would look like they’re somehow being mean to those provinces, when the provinces deliberately underfunded their own capacity.

If we want to reform things and start enforcing a system of accountability, that starts with making sure that provinces and municipalities live up to their agreements, or they don’t get transfer payments. But that requires a backbone and a willingness to actually hold them to account for those failures, and not being so timid that they refuse to actually say in clear terms that those provinces or municipalities didn’t live up to their agreements, so they would lose the funding/didn’t fund their own services because they thought they could get federal services for free, but they can’t, because there’s one taxpayer and they think they’re being clever. Nothing will change if someone doesn’t take a stand, and it’s time we start doing so.

Ukraine Dispatch

Trump says that America will resume sending Patriot missiles to Ukraine, so we’ll see how long it lasts this time.

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Roundup: Pushing back retaliation, again

The latest Trump eruption has prime minister Mark Carney backpedalling some more, and he has said that his deadline for retaliatory tariffs, which was July 21st, is now going to be August 1st, since this is when he’s extended the negotiation deadline to, again letting Trump continue to string him along. Nevertheless, he has also called a Cabinet meeting next week, and will be meeting with the premiers on the 22nd in Huntsville, Ontario. The Conservatives immediately jumped on this and tried to insinuate that this was rich snob Carney being too good to have meetings in Ottawa…except that Doug Ford had already called the Council of the Federation to meet there, and Carney will now be joining in to make it a First Ministers’ meeting.

There is further clarity that New NAFTA-compliant goods will continue to be exempt from these new tariffs (for now, anyway), and energy and potash tariffs will continue to be ten percent instead of the new threat of 35 percent, but it’s entirely incoherent, other than the usual threats about Supply Management (with no reciprocal offer to reduce any American agricultural subsidies). Of course, Trump said a lot of wrong things about Supply Management, so that’s not helping matters any either.

The latest from @clareblackwood.bsky.social on the constantly shifting tariffs.

Dale Smith (@journodale.bsky.social) 2025-07-11T18:11:42.200Z

In the meantime, the Conservatives want to recall the trade committee to hear from trade-exposed businesses. Of course, this is really just about getting clips for social media, since they’re not getting them from Question Period, and much like the transport committee and the ferries to be built in China, this will likely be members of all parties shaking their heads and expressing their dismay at Trump and his tariffs, but not too much dismay because that’s what they do—performative displays of dismay (again, to feed their social media channels). I expect nothing to come out of these meetings (other than a fresh supply of clips), but performers gotta perform, and that’s pretty much all MPs are these days (and yes, that is a Very Big Problem).

Ukraine Dispatch

A Russian attack on Kharkiv on Friday damaged a maternity hospital. Ukrainian drones, in contrast, hit a Russian fighter aircraft plant and a missile production facility. It’s almost like there’s a very different way in which the war is being conducted on either side.

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Roundup: Alberta’s censorship plan goes ahead

The Alberta government released their policy on “explicit materials” in school libraries yesterday, and it went badly, in part because it was confusing about what they considered acceptable “non-explicit sexual materials,” and pretty much every media outlet got it wrong, while my Xtra colleague Mel Woods was out there correcting everyone for several hours until they could update their stories. The government even had to put out a clarification.

Alberta's new school library standards are here, and include a total ban on "explicit sexual content" from school libraries in the province Notably, "religious texts" are excluded — and when asked during the briefing today to give examples, only the Bible was brought up as an obvious exception.

Mel Woods (@melwoods.me) 2025-07-10T18:35:11.927Z

I understand that the confusion is between "non-explicit sexual content" and what the government is defining as "not considered sexual" — they are two separate things

Mel Woods (@melwoods.me) 2025-07-10T20:01:59.483Z

All of the media outlets reporting that books with puberty/kissing/hugging are banned in Alberta for Grade 9 and under … that's not true!!

Mel Woods (@melwoods.me) 2025-07-10T20:33:27.209Z

All of this being said, what got me was that they got a token trans person to insist that this particular censorship (and let’s be clear that it’s what this is) has nothing to do with LGBTQ+ people but is just about sexually explicit materials, and they even said something to the effect of “At that age, we need guidance and not sexual materials.” And I immediately started swearing at the TV, because this is where it always starts. This is a page directly out of the playbook of autocrats like Viktor Orbán, who use LGBTQ+ scapegoating to further their ends. Hell, we have a history in this country where wannabe censors at Canada Customs (as it was then known) for seizing innocuous queer materials bound for the Little Sisters bookstore in Vancouver and claiming it was “obscene” (and there’s a Supreme Court decision on this).

For them to say "This is not about LGBTQ+ material, it's about sexually explicit material" as if Little Sisters didn't happen in this country or Viktor Orbán's anti-LGBTQ+ laws that target innocuous books aren't happening RIGHT NOW is absolutely enraging.

Dale Smith (@journodale.bsky.social) 2025-07-10T18:46:28.143Z

Of course, this is about LGBTQ+ people and materials. Three of the four books that started this moral panic on the part of the Alberta government were queer or trans. They were weaponised by Christian nationalists to achieve this very result. And they will keep complaining that any queer materials are “sexually explicit” by their very nature until the government capitulates. It’s also why the proposed age verification legislation that is making yet another attempt federally is 100 percent guaranteed to be used to attack queer and trans materials. Pretending otherwise means you are either mendacious or an idiot, or possibly both.

Ukraine Dispatch

Here is a look at how the residents of Kyiv are dealing with the increasing waves of attacks in recent weeks. A rebuilding conference took place in Italy, committing over ten billion Euros to the effort. Meanwhile, the UK signed a deal to supply air defence missiles to Ukraine, while the UK and France also agreed that Paris would be the headquarters of the “coalition of the willing” for Ukraine.

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Roundup: Absolving the provinces, child care edition

Because this is sometimes a media criticism blog, let’s talk about the absolute bullshit framing of The Canadian Pressstory about the Canadian Centre for Policy Alternatives’ report into the state of the early learning and childcare programme. The headline: “Ottawa set to miss 2026 deadline for establishing $10-a-day child care: report.” This is wrong. It is not “Ottawa” or the federal government who are going to miss the deadline. It is a number of provinces and territories who will, and yes, that matters.

The report makes it quite clear from the start who is responsible: “Provinces, territories and Indigenous governing bodies have the main responsibility for implementing CWELCC, with the federal government providing much of the funding and high-level policy considerations as it does with Medicare, housing, and other social programs under provincial or territorial jurisdiction.” Nowhere in the report does it assign blame or responsibility to the federal government for the goals not being met. It’s quite explicit about which provinces are meeting their targets and which are not, and if there is a particular issue levelled at the federal government, it’s that the goal of an “average of $10/day” is not the same as a $10/day cap, and that it’s an imprecise and problematic concept. But that’s not how the CP story frames the issue.

This goes back to one of the constant problems in Canadian media, where every problem is blamed on the federal government, and so long as they provide funding to the provinces for programmes that the provinces are responsible for carrying out, then somehow the federal government is assigned a disproportionate share of the blame. Indeed, who does CP reach out to for comment? The federal minister’s office, and not the provincial ministers in those lagging provinces, when it’s their gods damned responsibility, not the federal government’s. And this pattern keeps repeating itself over and over again, and we wonder why provincial governments are never held accountable for their failures. This is one prime example right here. And yes, this CP wire copy was distributed in pretty much every other outlet with the same misleading headline, and that same headline and framing were used in television interviews on CTV News Channel throughout the day. I wish I knew why it’s impossible for legacy media to have a basic grasp of civics, but they refuse to, and this is what we end up with. It’s unacceptable.

Today or any day, really.

Dale Smith (@journodale.bsky.social) 2025-07-09T15:31:50.296Z

Ukraine Dispatch

Russia’s attack on Ukraine early Wednesday was the largest yet, at 728 drones and 13 missiles. The attack early this morning has thus far reported two deaths and 13 injuries.

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