Tag Archives: Inflation

Roundup: Kludging together dental care

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Parliament resumed sitting yesterday, and the first thing the government did was tabled two bills related to their recently announced affordability measures. While the GST rebate is a fairly straight-forward mechanism that mostly just needs a royal recommendation to ensure that funds are available for it, they also tabled their bill on dental care, or rather the funds to be used for dental care in lieu of a full-on programme because it’s going to take a while to figure out how best to do it. And thus far, it looks like the kludge is to use the CRA as the delivery mechanism and who would eventually follow-up to see that it was properly administered and not improperly claimed. But that’s going to be a problem. And the worst part of this is the reminder that the NDP want this to be a fully federally-administered programme, when it’s an issue within provincial jurisdiction, and there is no federal system they can realistically build off of. The CRA to transfer funds to families is a kludge, and not a great one, but the NDP have demands and an inane belief that the problem just requires enough political will. This can only end in tears.

Ukraine Dispatch, Day 209:

While Ukrainian forces bolster their lines with captured Russian tanks, shelling around the Enerhodar nuclear plant has resulted in damage to the facility, as they target other power plants and dams as though that would make it easier for slaves to do the work.

On the Russian side, it looks like the regime is trying to speed ahead sham referendums to justify formally annex those territories, but nobody should be fooled. As well, the Duma is considering legislation that would crack down on soldiers who disobey orders, as well as deserters, which could be indicate a real problem for Russia when it comes to maintaining their military.

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QP: Demanding to rescind tax increases for things that aren’t taxes

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The first day back, and the prime minister was off at the United Nations General Assembly in New York, while his deputy was in Toronto for the the funeral of former Cabinet minister Bill Graham, leaving the rest of his front bench to deal with Pierre Poilievre’s leadership debut. When he began, Poilievre started in French, complaining that EI and CPP premiums increased, as did the carbon price, and demanded that these “tax increases” be rescinded for “senior and workers.” Randy Boissonnault was chosen to respond, congratulating Poilievre on his victory, before he said that Canadians were about to see two competing visions—the Liberals who care about people and the the Conservatives who tell them that they’re on their own, and raised their affordability package that was just tabled. Poilievre took exception to this, and said the Liberals didn’t care because the share of average Canadians’ paycheques that go to housing going from 32 percent to 50 percent. Boissonnault repeated his points about their affordability measures. Poilievre switched to English to remix both of his previous questions into one, and Karina Gould stood up to assure him they had measures going to families who need them. Poilievre trotted out his talking points about people who can’t leave their parents’ basements, and Ahmed Hussen praised their housing measures, which Poilievre and his party voted against. Poilievre listed the supposed tax increases the government made (which were not actually taxes), and Boissonnault got back up to repeat his lines about the “two competing visions” in English.

Alain Therrien led for the Bloc, and he raised the spectre of gun violence in Montreal, demanding federal action. Marco Mendicino have his boilerplate response of his thoughts being with the victims, and said that they have a plan with legislation and more resources for security at the border. Therrien was not mollified and demanded more action, and Mendicino hoped for support for their gun control bill, as it has more resources for police to deal with organised crime.

Jagmeet Singh stood up to pat himself on the back for “forcing” the help more people deal with inflation (as though this government wouldn’t have done most if not all of those measures on their own, with the possible exception of the stopgap measure for dental care to meet the deadline) and rhetorically wondered what took them so long. Boissonnault recited his praise for the government’s affordability measures. Singh switched to French to decry the greed of grocery CEOs and demanded the government force them to “pay their fair share,” to which Boissonnault assured him they were making them pay, and listed the increase to corporate taxes and their “dividends” from the pandemic (which I’m sure is just for banks and insurance companies).

https://twitter.com/mattgurney/status/1572292824028319746

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Roundup: The edgy reporting on the state of the monarchy

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It wasn’t unexpected, but Canadian media has decided to go full-on concern trolling for the republican cause while the world mourns the passing of the Queen. There is no end to the polls about Canadians’ feelings about the “British” monarchy (oblivious to the fact that we are under the Canadian monarchy, which is separate and distinct), or stories about Indigenous people and their relationship with the Crown, but they seem to entirely lack the nuances of the treaty relationship and the failure of the Queen’s Canadian government to properly uphold those treaties, and instead putting forward a narrative that the Crown was directly responsible for the cultural genocide of residential schools. There are stories aplenty of some of the Realms who are considering abandoning the monarchy in favour of republicanism, as Barbados just did, but some can’t seem to distinguish between the Commonwealth (a voluntary organisation mostly made up of former British colonial holdings, but has since expanded to include countries with no such colonial ties) and the Realms (the fifteen countries for whom the Queen served as monarch), and it makes the questions very awkward if they really don’t know what they’re asking (looking at you, Power & Politics). And then there are the stories, largely American, which can’t get the basics right about the funding of the monarchy, or that taxpayer dollars are paying for the Queen’s funeral (as though American taxpayer dollars don’t pay for their presidents’ state funerals, or for their presidential libraries/personality shines).

It’s predictable, and it’s utterly provincial. I’m sure plenty of them think they’re being edgy, or getting to the real hard news of the day, but it’s mostly coming off as ill-informed, devoid of proper context, and in some cases, without much in the way of constitutional reality. I wish I could say we should expect better, but sadly, it’s about exactly what we can expect form our media outlets.

Ukraine Dispatch, Day 203:

President Volodymyr Zelenskyy ventured out of Kyiv yesterday, visiting the strategic city of Izyum now that it has been liberated from the Russians. On the way back to Kyiv, however, his motorcade was involved a collision, though his injuries were said to be minor. One of the towns recently freed was Hrakove, which was largely levelled by Russians, and its original population of 1000 is now about 30. Meanwhile, nearly 5000 Ukrainian recruits have completed basic training in the UK from allied trainers, including Canadians. Ukraine is also seeking a more formalised treaty with Western partners to ensure its protection from future Russian invasion.

https://twitter.com/KyivIndependent/status/1570006459324284928

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Roundup: Poilievre plays victim around the media

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We’re in the first week of Pierre Poilievre’s leadership, and he’s already sticking to his antagonistic playbook. He announced his leadership team first thing in the morning, with two deputies—Melissa Lantsman (a Jewish lesbian) and Tim Uppal (a Sikh) in order to inoculate himself against the usual cries that the party is racist and bigoted. A short while later, Quebec MP Alain Rayes announced he was leaving caucus and going to sit as an independent, because he didn’t like the direction Poilievre was going. (Cue everyone insisting that the party has “never been more united,” which is what they all say just before and after such an exit).

Fast-forward a couple of hours, and the federal government has announced their assistance package for low-income people dealing the effects of high inflation, and Poilievre calls a press conference to react. And the spectacle begins. David Akin, one of the reporters present, takes offence that Poilievre insists he won’t take questions (and he hasn’t since he was made leader), and starts shouting questions at him. And what does Poilievre do? Call Akin a “Liberal heckler” (because the pool camera can’t see Akin as he’s behind it), and a few hours later, sends out a fundraising appeal to his base that plays victim, that the media is out to get him, and that they’re all protecting Trudeau, and that you need to send him money to take on both Trudeau and the media. It’s gross, it undermines institutions, it undermines democracy, but he doesn’t care. It’s his game. And most of the media in this country have no idea how to react to it, and it’s going to be a real problem going forward.

https://twitter.com/glen_mcgregor/status/1569903207555497985

https://twitter.com/mattgurney/status/1569872613228400642

As for the government’s assistance package (dental care for low-income children under 12, enhanced rent support for low-income people, doubling the existing GST tax credit, which again, targets low-income households—and yes, the NDP are loudly taking credit for all of it), there are some good analysis threads from Lindsay Tedds and Jennifer Robson, and because these are targeted at the low end, they’re really unlikely to drive inflation, unlike say the cheques certain provinces are sending out to everyone, whether they need them or not. And Poilievre’s insistence that this will make things worse because they increase the deficit (the deficit, if there will even be one this year, isn’t driving inflation—global factors are), and then demands that the government not raise taxes. The only taxes going up is the luxury tax on boats, private planes, and luxury cars. The carbon price is not a tax, and rebates more to lower-income households than they spend. CPP and EI premiums are not taxes. Higher taxes actually fight inflation, lowering them makes it worse. The absolute economic illiteracy should be mind-numbing, until you realises that he gets his information from crypto-bros on YouTube, which tells you pretty much everything you need to know.

https://twitter.com/LindsayTedds/status/1569770945895895042

Ukraine Dispatch, Day 202:

Russian troops are not only retreating from positions in the northeast of the country, they are also retreating in the south, and heading toward positions in Crimea. As these towns and cities are liberated, authorities are moving in to document war crimes against civilians. Of course, shelling does continue around the Zaporizhzhia nuclear plant, and Russians are still hitting Kharkiv, even though they have been repelled from the area, which is being taken as a sign of desperation. Analysts believe this rapid retreat is the sign of a spent Russian military, their approach unsustainable,

https://twitter.com/MarkHertling/status/1569704142167506944

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Roundup: Inflation starts to cool

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The CPI figures were released yesterday morning, and the headline number has cooled from its peak, and in July was running at an annualized rate of 7.6 percent, the decrease largely being driven by lower gasoline prices. Of course, there are still plenty of other drivers that are keeping it high, some of which are things like food (largely being driven by factors like climate change), hotel stays, and airline charges. But rather than exploring what these drivers are, most of the coverage of the day was focused on the usual wailing and gnashing of teeth that prices are high and demands for the government to do something about it, which, short of wage and price controls—which don’t really work—they can’t do much about. And no, “just give everyone money” is not a solution because that drives demand further. Same as tax cuts or breaks, and in fact, increasing taxes is generally a good way to dampen inflation. Regardless, there is a real incurious narrative to this in the media, which is not surprising, unfortunately.

Meanwhile, here is Kevin Carmichael’s hot take on the figures, while Bank of Canada governor Tiff Macklem took to the pages of the National Post to offer some reassurance that the Bank is on the case. Economist Stephen Gordon explains the data here on video. Heather Scoffield warns that even if inflation peaked there are too many factors keeping it high for some time to come. And here is a look at the StatsCan analysts who compile the inflation data.

Ukraine Dispatch, Day 175:

There was another explosion at an ammunition depot at a military base in Russian-occupied Crimea, and the Ukrainian government will neither confirm nor deny involvement, though they are mockingly calling it “demilitarization,” as a play on Putin’s justification for invading Ukraine.

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Roundup: A supposed “breakthrough” that amounted to nothing

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Federal documents, albeit heavily redacted, are starting to be made public as part of the court challenge around the invocation of the Emergencies Act, and thus far we can see that the Ford government in Ontario offered to meet with those blockading the Ambassador bridge (and were rejected), that the federal government had briefly considered negotiating with the occupiers in front of Parliament Hill, but did not go ahead with it (which is just as well considering their demands were the overthrow of democracy in favour of a ruling junta of occupiers, senators, and the Governor General). The night before the Act was invoked, the government was informed of a “potential breakthrough” with the negotiations happening with the city, which again, were unsuccessful, and the Act was invoked.

This has of course proven to be fodder for certain Conservative leadership candidates who insist that this is some kind of smoking gun that invoking the Act was unnecessary, but that’s not what it indicates, and frankly, you shouldn’t negotiate with a group of right-wing extremists, grifters, conspiracy theorists and grievance tourists who think nothing of overturning democracy because their feelings got hurt. But this seems to be where we’re at, which is utterly boggling.

Ukraine Dispatch, Day 170:

Analysis of that explosion on the Russian airbase in occupied Crimea shows that as many as twenty Russian warplanes may have been destroyed, which would be the largest single-day loss since World War II. (Kyiv still has not claimed responsibility for the explosion). The head of the International Atomic Agency is calling on Russia and Ukraine to halt shelling near the Zaporizechzhia nuclear plant, and to allow experts to evaluate the safety of the facility. Ukrainian forces have begun their counter-attack in the Kherson region, having recaptured 54 settlements (while 92 percent of the region remains under occupation). In Bucha, civilians murdered by Russians are being buried as numbers because they have not been identified by name. Meanwhile, in Denmark, Western countries pledged more support for Ukraine.

https://twitter.com/DefenceU/status/1557621932429819907

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Roundup: Threats and compromises over dental care

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After spending the weekend talking tough on healthcare, Jagmeet Singh made some threats and shook his fist in the direction of Althia Raj yesterday, insisting that if the promised dental care programme doesn’t happen by the end of the year, that he was walking away from the supply-and-confidence agreement with the federal government. As this was hitting the wires, so was a leak that said the government was looking at a temporary cash transfer for eligible households in lieu of dental care this year, because it’s taking longer to implement (even though they insist they are on track). But the federal government hasn’t even decided on a delivery model yet, which is a problem, and premiers haven’t signalled any willingness to work with them on this either, and that’s a problem for all involved. Singh was naïve to believe this could happen in a few months, and the Liberals were stupid to promise that it could, knowing that this was going to be tricky because of the jurisdictional hurdles. And I suspect this is just going to drive cynicism on all sides, because new national social programmes can’t be done on the back of a napkin and rolled out in a few weeks, and everyone has set up expectations that will be nigh-impossible to meet. So good job, everyone. You’ve really helped.

Ukraine Dispatch, Day 167:

There are international concerns after Russians shelled the Zaporizhzhia nuclear power station, in what is believed to be an attempt to cut power to Ukrainian-held cities in the southern part of the country. We also got word that a Ukrainian grain ship has reached Turkey, but it seems there has been a dispute with the cargo’s buyers in Lebanon, so they may be looking for a new buyer for the corn haul. Because of course. Over the weekend, Russians targeted the eastern cities of Bakhmut and Avdiivka, in the Donetsk region.

In case you missed it:

  • My column on Michael Chong’s latest round of reform ideas, and some of them are actually good, while others may not be practical given current limitations.
  • For National Magazine, I wrote about the Supreme Court of Canada’s decision around condom refusal and how that can lead to a sexual assault trial.
  • My Loonie Politics Quick Take on the (then-forthcoming) leadership debate and how you shouldn’t count anything out when there’s a ranked ballot in the mix.
  • My column on why we can’t keep ignoring the link between climate change and what it’s done to crops, and by extension, rising food inflation.
  • My Xtra column on this government’s poor record on HIV funding, while they were busy patting themselves on the back at the International AIDS Conference.
  • My column calling out Senator Dasko’s morally bankrupt poll trying to drum up support for the continuation of hybrid sittings, with no mention of the human toll.

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Roundup: Trying for a left-wing populist narrative

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It’s day one-hundred-and-forty-nine of Russia’s invasion of Ukraine, and Russian forces have been pounding Kharkiv, mostly by randomly shelling residential areas to inflict civilian casualties. But as this shelling takes place, the head of MI6 in the UK says that their analysis shows that Russia’s army is nearly exhausted, and that this will open up opportunities for Ukrainian forces to counter-attack in the coming weeks. Meanwhile, Turkey says that Russia and Ukraine are about to sign a deal that will re-open Black Sea ports and allow grain shipments to pass through again, and hopefully avert the threat of famines (and likely lower world grain prices). There are still a lot of questions—including whether Russia can actually be trusted—but we’ll see what happens in the coming days.

https://twitter.com/AnitaAnandMP/status/1550193058809090054

Closer to home, Jagmeet Singh is trying to play the populist card, and it’s just laughable. It’s like the satire of a populist’s talking points (not that the NDP hasn’t morphed itself from a principled left-wing party to a left-flavoured populist one more than a decade ago). Like Singh and his inner circle looked at Pierre Poilievre’s traction and said “get me a piece of that action,” so they tried to ape his talking points. It’s risible, and it’s a sign of the intellectual vacuum at the centre of our political parties (and no, Liberals, you don’t get to be smug about this one either as your party can’t communicate their way out of a wet paper bag).

https://twitter.com/theJagmeetSingh/status/1550180051152404482

There are no “Ottawa elites” who are “enraged” by your suggestion. Yes, it got a bunch of scorn from, well, everyone because the last thing you want to do when you’re facing high inflation is to just give everyone even more money. Targeted help, sure, but social assistance and disability are provincial programmes, whereas the Canada Child Benefit is too broad a programme that it has been considered stimulus by the government and every credible economist, which is the last thing you want right now. The GST credit can maybe be a vehicle as it’s more targeted, but you need to be specific about that. As for the notion that corporate price gouging has caused inflation is flat-out wrong (even if it has contributed in a small way). Taxing oil companies won’t solve inflation, and an “excess profit tax” is a fraught move because it gets very tricky to come up with a workable definition of “excess,” particularly given the fact that a) the economy is overheated so of course businesses are going to be making more profit, and b) the world price of oil has more to do with supply constraints and capacity constraints for refining, so just taxing it more doesn’t actually solve any problems. But this kind of ham-fisted economic illiteracy does nothing for Singh’s credibility, and just drags the discourse even further down.

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Roundup: Jockeying for first-place ballot support

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We’re in day one-hundred-and-forty-eight of Russia’s invasion of Ukraine, and Ukrainian forces damaged a bridge that is critical to supplying Russian troops in southern Ukraine, where Russia is trying to consolidates its territorial gains, making it clear that their supposed aim of “liberating” the predominantly-speaking Donbas region was always a lie. Russians, meanwhile, bombarded the north-eastern city of Kharkiv, and killed more civilians there. On that note, here is a look at Ukrainian refugees being forcibly relocated into Russia.

Meanwhile, Russia has started up a sham tribunal to document “war crimes” from Ukrainians to justify the invasion, and they are using Westerners living in Russia, who are often promoters of conspiracy theories or who are known for being purveyors of disinformation, as their star witnesses. The whole thing is a thinly-veiled propaganda exercise to bolster support for the invasion in Russia, and to provide a counter narrative to the International Criminal Court proceedings against Russians who are involved in actual war crimes in Ukraine, but

Closer to home, the Conservative leadership race is reaching a critical juncture as ballots are being mailed out and candidates are asking for top billing on their ranked ballot. Jean Charest wants another debate, particularly now that Patrick Brown is out of the race, while Roman Baber is trying to make a plea for people to give him a second look and not simply rank him further down-ballot (though the policies he outlined simply remind everyone that yes, this guy is a moron). Speaking of, the National Post has compiled the various policy positions of the leaders, at which point I am force do once again remind everyone that this remains an abomination in our system—leaders are not supposed to be deciding policy and putting it forward in a leadership contest. That is supposed to be the job of the grassroots membership, who have biennial conventions to do just that, but we have so bastardised our system in order to create a faux-presidential primary that we’ve reached this debased state.

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Roundup: Home for the summer

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It is day one-hundred-and-twenty-one of Russia’s invasion of Ukraine, and still no news out of Severodonetsk, but there is additional bombardment of the area including air strikes. The big news, however, was that the EU has granted the request to make Ukraine a candidate for membership—itself a years-long process that will require great reforms, most especially Ukraine cracking down on its problem of government corruption—but more than anything, this is a symbolic victory. It signals that Ukraine is moving more to the west, and away from Russia, and that further undermines Putin’s aims.

Closer to home, both the House of Commons and the Senate have risen for the summer, the latter being a problem because it was supposed to sit next week and they rammed through a bunch of legislation with little or no debate or scrutiny in order to make it happen. Below is a speech by Senator Paula Simons about one of those bills being expedited, and why that’s a problem (and you’d better believe I have an angry column about this coming out over the weekend).

Meanwhile, Aaron Wherry had an interview with the Commons’ Speaker, Anthony Rota, and frankly I wonder if we’re living in the same reality. Rota seems to think that his method of gentle chiding of MPs gets results, and that they change their behaviours when he hints that he knows who’s being disruptive (but won’t actually name and shame them). Except he doesn’t get results, and they continue to openly flout the rules, because they know that he’ll belatedly make some gentle comment that won’t actually do anything to enforce the rules that they broke, so it keeps happening again and again. But he thinks this is a good way, because things aren’t as bad as they were in the pre-2015 days before the Liberals largely stopped applauding and being as vociferous in their heckles. He’s not doing his job, plain and simple.

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