We are now on or about day forty-two of Russia’s invasion of Ukraine, and the talk of the day was president Volodymyr Zelenskyy’s address to the UN Security Council, where he recounted (with video) the extent of Russia’s atrocities in towns like Bucha, and demanded war crimes tribunals, and more importantly, massive reform of the Security Council in order to strip Russia of its veto powers. That, of course, is far easier said than done, particularly because the major powers won’t play if they don’t get additional powers, and Russia is a nuclear power. So we’ll see what happens next (which may be nothing).
It was a historic moment this morning, when Ukraine’s president Zelenskyy addressed the #UN Security Council, where he demanded that Russia be held #accountable for their atrocious actions. pic.twitter.com/QsCKWDMZlx
— Canada Mission UN (@CanadaUN) April 5, 2022
Closer to home, we are now one day away from the budget, so expect a lot of narratives about the expectations, whether the government should spend more or cut back, though I find there to be some problems with some of the assumptions therein. For example, when it comes to spending, I’m not sure why things like more money for housing or the investment in dental care would be classified the same as subsidies to industries or so on. Is an expansion of the social safety net the same as expansionary fiscal policy that would ordinarily be used to create jobs or growth (which is less relevant right now given that we are sitting around full employment)? I’m not sure they’re the same, but they seem to be treated as much in some of the pieces circulating in the Discourse right now.
At the same time, we should also be realistic about what the budget can and cannot do, such as combatting inflation. In spite of facile narratives that government spending is driving inflation, that’s not showing up anywhere in the data—what is driving it has a lot more to do with the world price of oil (which is directly impacted by the sanction on Russia as a result of their invasion of Ukraine), and the fact that there were droughts in food-producing regions including Canada, thus limiting food supplies and driving up costs, and that the invasion is going to make it worse as Ukraine was considered the breadbasket of Europe (and elsewhere), and if they can get crops planted this year, there are problems with the Russians having targeted ports. Add to that the rising cost of housing (which is largely a problem of supply driving by craven municipal governments who can’t authorize zoning changes or increase density because they’re afraid of NIMBYs and/or are in the pockets of developers), and you wind up with a whole lot of things that the federal budget can’t really do much about. Not that there won’t be an effort to put all of the weight on the federal government regardless, because that’s how we roll, apparently.